Core Viewpoint - Maravai LifeSciences Holdings, Inc. is facing a class action lawsuit due to alleged breaches of fiduciary duties by its board of directors, following significant issues related to revenue recognition and internal controls [1][3]. Group 1: Financial Reporting Issues - On February 25, 2025, Maravai announced a postponement of its fiscal 2024 earnings release and the filing of its annual report on Form 10-K due to an error in revenue recognition, which resulted in approximately $3.9 million being incorrectly recorded [2]. - The company identified a material weakness in its internal controls over revenue recognition, necessitating additional time to assess a potential non-cash impairment charge related to goodwill from its acquisition of Alphazyme LLC [2]. - Following this announcement, Maravai's share price dropped by $0.87, or 21.70%, closing at $3.14 per share on February 25, 2025, amid unusually heavy trading volume [2]. Group 2: Allegations in Class Action Complaint - The class action complaint alleges that Maravai's executives made materially false and misleading statements and failed to disclose adverse facts about the company's operations and prospects [3]. - Specific allegations include the lack of adequate internal controls over financial reporting, inaccurate revenue recognition during fiscal 2024, and overstated goodwill [3]. - The complaint asserts that the positive statements made by the defendants regarding the company's business were materially misleading and lacked a reasonable basis due to these issues [3].

Company Strategy & Market Position - Maravai aims to be the customer's first choice by owning the front end of the funnel and winning in discovery[13] - The company's solutions are well-positioned to capture attractive opportunities in the growing mRNA, cell, and gene therapy pipeline, which is expected to grow 4x from 2022 to 2027[15] - Maravai leverages its manufacturing scale, invests in innovation, scales its commercial organization, and pursues inorganic growth opportunities[41] Financial Highlights & Cost Management - As of September 30, 2023, Maravai has $580 million in cash and $534 million in long-term gross debt, resulting in a net debt of -$45 million[43] - The company is targeting at least $30 million in annualized cost savings in 2024[43] - Adjusted Free Cash Flow was $5 million YTD through Q3 2023[44] Nucleic Acid Production (NAP) Segment - Nucleic Acid Production accounted for 77% of the company's business[28] - One customer's sales grew 12x in 4 years, from $619K in 2018 to $7.75M in 2022[32] Biologics Safety Testing Segment - Biologics Safety Testing accounts for 23% of the company's business[35] - Cygnus Technologies' HCP kits are used in all 17 commercialized CAR-T cell and gene therapies plus the first-ever CAR-T approval in China[36]

Business Overview - Maravai LifeSciences is targeting high-growth markets in mRNA, gene editing, cell and gene therapy, vaccines and biologics drug manufacturing[6] - The company provides critical assays for detecting impurities during biotherapeutics process development and commercial manufacturing[7] - Nucleic Acid Production accounted for 61% of total revenue in Q1 2025, with revenue of $29 million[19,48] - Biologics Safety Testing accounted for 39% of total revenue in Q1 2025, with revenue of $18 million[41,48] - 96% of top 25 global biopharmaceutical companies ranked by R&D spend are Maravai customers[10,13,14] Financial Highlights - The company's cash position is $285 million as of Q1 2025[51] - Long-term gross debt is $298 million as of Q1 2025[51] - Adjusted EBITDA for Biologics Safety Testing in Q1 2025 was $18 million, representing a 70% adjusted EBITDA margin[48] - Adjusted EBITDA for Nucleic Acid Production in Q1 2025 was ($9 million), representing a (31%) adjusted EBITDA margin[48] - Adjusted net loss was $(20436) thousand, and adjusted fully diluted loss per share was $(008) in Q1 2025[64] Growth and Pipeline - CleanCap® is used in preclinical programs (70% of total programs) and clinical programs (30% of total programs)[28] - Clinical programs using CleanCap® have increased by 15% year-over-year[28]

Core Insights - Maravai LifeSciences Holdings, Inc. has appointed Bernd Brust as the new CEO, succeeding William "Trey" Martin III, effective immediately [1][2] - The leadership transition aims to enhance innovation, execution, and financial performance within the company [2] - Bernd Brust brings over 30 years of experience in the life sciences industry, with a focus on transforming businesses into profitable entities [2][5] Company Overview - Maravai LifeSciences is a leading provider of life science reagents and services, supporting drug therapies, diagnostics, and vaccine development [8] - The company specializes in nucleic acid synthesis and biologics safety testing, catering to biopharmaceutical, vaccine, diagnostics, and cell and gene therapy sectors [9] Leadership Transition - The new CEO, Bernd Brust, emphasizes a customer-centric approach and aims to advance scientific discovery and innovation [2][3] - The outgoing CEO, Trey Martin, expressed pride in the genomic medicine platform developed during his tenure and highlighted the company's strong foundation for future growth [3] Financial Guidance - Maravai has not reaffirmed or withdrawn its full-year 2025 financial guidance, with plans to reassess during the second-quarter earnings call in August [4] Bernd Brust's Background - Prior to joining Maravai, Bernd Brust served as Executive Chairman and CEO of Antylia Scientific, which had approximately $400 million in annual revenue [6] - Brust has held senior leadership roles at Qualicaps, Life Technologies, Invitrogen Corporation, and GE Medical Systems, showcasing a diverse background in the life sciences sector [7]

Core Insights - Maravai LifeSciences has published its 2024 Sustainability Report, highlighting progress in product innovation, employee engagement, governance, and sustainable growth [2][3] Product Innovation - Launched 49 new products, including the CleanCap® M6 analog at GMP quality [6] - Completed a state-of-the-art GMP facility in San Diego, increasing mRNA production capacity tenfold [6] - Established an RNA Innovation Center in collaboration with Johns Hopkins University [6] - Manufactured over 130 GMP batches for mRNA [6] Our People - Achieved a 95% participation rate in the annual employee engagement survey, receiving over 2,600 comments [6] - Expanded the WE (We are Empowered) Employee Resource Group for advocacy, mentorship, and outreach [6] - Implemented a new career framework for transparent progression paths for all employees [6] - Continued the Impact Day program, with employees contributing approximately 800 volunteer hours [6] Governance - Appointed R. Andrew Eckert as independent Chairman of the Board [6] - Adopted a formal, publicly available Human Rights Policy [6] - Ensured 100% of standing Board Committees are chaired by independent members [6] - Strengthened intellectual property with additional CleanCap® patents in China and Canada [6] Sustainable Growth - Enhanced greenhouse gas emissions data collection and expanded Scope 3 emissions reporting [11] - The Leland, North Carolina facility's solar panels generated over 180,000 kWh, offsetting approximately 20% of the facility's energy use [11] - San Diego EV charging stations saved over 19,000 gallons of gasoline [11] - Advanced planning for lab plastics recycling and single-use plastic phase-out [11] Reporting Standards - The 2024 report was prepared in reference to the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Greenhouse Gas Protocol frameworks [8]

Core Insights - Maravai LifeSciences Holdings, Inc. published its 2024 Sustainability Report, highlighting progress in product innovation, employee engagement, governance, and sustainable growth [1][2] Product Innovation - Launched 49 new products, including CleanCap® M6 analog at GMP quality [6] - Completed a state-of-the-art GMP facility in San Diego, increasing mRNA production capacity tenfold [6] - Established an RNA Innovation Center in collaboration with Johns Hopkins University [6] - Manufactured over 130 GMP batches for mRNA [6] Our People - Achieved a 95% participation rate in the annual employee engagement survey, receiving over 2,600 comments [6] - Expanded the WE (We are Empowered) Employee Resource Group for advocacy, mentorship, and outreach [6] - Implemented a new career framework for transparent progression paths [6] - Employees contributed approximately 800 volunteer hours through the Impact Day program [6] Governance - Appointed R. Andrew Eckert as independent Chairman of the Board [6] - Adopted a formal, publicly available Human Rights Policy [6] - 100% of standing Board Committees are chaired by independent members [6] - Strengthened intellectual property with additional CleanCap® patents in China and Canada [6] Sustainable Growth - Enhanced greenhouse gas emissions data collection and expanded Scope 3 emissions reporting [6] - Leland, North Carolina facility's solar panels generated over 180,000 kWh, offsetting approximately 20% of the facility's energy use [6] - Advanced planning for lab plastics recycling program and single-use plastic phase-out [10]

Maravai LifeSciences Holdings, Inc. (MRVI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.06, delivering a surprise of -100%. It will be interesting to see h ...

Financial Data and Key Metrics Changes - The company reported revenue of $47 million for Q1 2025, exceeding expectations and showing growth of over $4 million from Q4 2024 [7][30] - GAAP net loss before noncontrolling interests was $53 million for Q1 2025, compared to a loss of $23 million in Q1 2024 [30] - Adjusted EBITDA was a negative $11 million for Q1 2025, down from a positive $8 million in Q1 2024 [30][32] - Basic and diluted EPS for Q1 was a loss of $0.21 per share, compared to a loss of $0.09 per share in Q1 2024 [33] Business Line Data and Key Metrics Changes - The Nucleic Acid Production (NAP) segment generated $29 million in revenue for Q1 2025, up $1 million from Q4 2024 [7] - The Biologics Safety Testing (BST) segment reported revenue of $18 million in Q1 2025, an increase of $3 million over Q4 2024 [7][39] - The adjusted EBITDA margin for the BST segment was 70%, indicating strong performance [39] Market Data and Key Metrics Changes - Revenue by customer type in Q1 was 29% from biopharma, 28% from life science and diagnostics, 6% from academia, 7% from CDMO, and 30% through distributors [8] - Revenue by geography was 62% from North America, 15% from EMEA, 15% from Asia Pacific, and 8% from China [8] Company Strategy and Development Direction - The company is focused on a return to growth strategy and building a diversified, predictable franchise as a life science tool provider [11] - The strategy includes vertical integration in the NAP segment to enhance quality, speed, and cost efficiency [9] - The company aims to advance its market leadership in genomic medicines and expand its product and service portfolio [11][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of transitioning from a COVID-driven revenue model to a more diversified business [43] - The company is actively monitoring trade dynamics and working to mitigate potential impacts from tariffs [10][44] - There is a strong cash position of $285 million, which is seen as sufficient to manage the current reset period [44] Other Important Information - The company plans to publish its 2024 sustainability report, highlighting its commitment to sustainability and long-term strategic objectives [27][28] - The integration of recent acquisitions is progressing well, enhancing operational capabilities and supply chain control [35] Q&A Session Summary Question: What does the intel tell about the focus areas for new trials and those being discontinued? - Management noted that while preclinical programs were flat, clinical programs showed growth, indicating a focus on later-stage projects due to funding conservatism [50][51] Question: What are the biggest drivers of incremental demand in the next 12-18 months? - Management indicated that clinical progression and new business wins would drive demand, with a focus on expanding from bulk reagent supply to comprehensive service offerings [52][54] Question: Is there an opportunity to take market share with 100% U.S. manufacturing? - Management sees renewed interest in their U.S.-based manufacturing capabilities, which could attract customers looking for alternative suppliers [57][58] Question: What are the buying patterns from biopharma and academic customers? - The response highlighted a mixed environment, with some customers securing long-term funding while others are delaying decisions due to funding uncertainties [63][64] Question: Is there any government work or exposure to BARDA? - Management confirmed that there is no direct government work currently, and past BARDA engagements have been satisfied [69][70] Question: Is there seasonality in BST revenue? - Management indicated that Q1 is typically a high point for BST revenue due to manufacturing cycles, and a seasonal dip is expected in subsequent quarters [74][76]

Financial Data and Key Metrics Changes - The company reported $47 million in revenue for Q1 2025, exceeding expectations and showing a growth of over $4 million from Q4 2024 [6][27] - GAAP net loss before noncontrolling interests was $53 million for Q1 2025, compared to a loss of $23 million in Q1 2024 [27] - Adjusted EBITDA was negative $11 million for Q1 2025, down from a positive $8 million in Q1 2024 [28] - Basic and diluted EPS for Q1 was a loss of $0.21 per share, compared to a loss of $0.09 per share in Q1 2024 [30] Business Line Data and Key Metrics Changes - The Nucleic Acid Production (NAP) segment generated $29 million in revenue for Q1 2025, an increase of $1 million from Q4 2024 [6] - The Biologics Safety Testing (BST) segment reported $18 million in revenue for Q1 2025, up $3 million from Q4 2024 and flat compared to Q1 2024 [6][35] - The adjusted EBITDA margin for the BST segment was 70%, indicating strong performance [35] Market Data and Key Metrics Changes - Revenue by customer type in Q1 was 29% from biopharma, 28% from life science and diagnostics, 6% from academia, 7% from CDMO, and 30% through distributors [7] - Revenue by geography was 62% from North America, 15% from EMEA, 15% from Asia Pacific, and 8% from China [7] Company Strategy and Development Direction - The company is focused on a return to growth strategy and building a diversified franchise as a life science tool provider and clinical partner [10] - The strategy includes vertical integration in the NAP segment to enhance quality, speed, and cost efficiency [8] - The company aims to expand its product and service portfolio to drive long-term sustainable growth [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of transitioning from a COVID-driven revenue model to a more diversified business [39] - The company is closely monitoring trade dynamics and working to mitigate potential impacts from tariffs [39] - The cash position of $285 million is seen as sufficient to manage the reset period while focusing on long-term growth [40] Other Important Information - The company plans to publish its 2024 sustainability report, highlighting its commitment to sustainability and long-term strategic objectives [25] - The integration of recent acquisitions is progressing well, enhancing operational capabilities and supply chain control [32] Q&A Session Summary Question: Focus areas for new trials and reasons for discontinuation - Management noted that while preclinical programs were flat, clinical programs showed growth, indicating a focus on later-stage projects due to funding conservatism [44][46] Question: Drivers of incremental demand in the next 12-18 months - Incremental demand is expected from clinical progression, new business wins, and the transition from bulk reagent supply to comprehensive service offerings [48] Question: Opportunities for market share due to U.S. manufacturing - The company sees potential for market share growth as interest in U.S.-based manufacturing increases, particularly in the mRNA space [51][54] Question: Impact of U.S. policy changes on customer buying patterns - Customers are experiencing mixed impacts from government funding changes, with some securing long-term funding while others delay decisions [60] Question: Government work and exposure - The company has no direct government work currently, with past contracts fulfilled, but remains open to future opportunities [66] Question: Seasonality in BST revenue - Q1 is typically a high point for BST revenue, influenced by manufacturing cycles and strong performance in China [70][72]

Financial Performance - Q1 2025 revenue reached $47 million[12] - Nucleic Acid Production (NAP) revenue was $29 million, accounting for 61% of total revenue[49, 50] - Biologics Safety Testing (BST) revenue was $18 million, representing 39% of total revenue[50, 51] - The company reported a GAAP net loss of $53 million[39] - Adjusted EBITDA was -$11 million, with an adjusted EBITDA margin of -23%[39] - Basic and Diluted EPS were both -$0.21, while Adjusted EPS was -$0.08[42] Guidance and Outlook - The company anticipates full-year 2025 revenue to be between $185 million and $205 million[53] - Q2 2025 revenue is projected to be in the range of $45 million to $50 million[53] - Capital expenditures for FY 2025 are expected to be between $15 million and $20 million[47, 54] Business Highlights - The company has 447 CleanCap customers in clinical stage, which is a 15% year-over-year increase[26] - The company has approximately 1,500 total programs, with 30% in clinical and 70% in preclinical stages[26]