Group 1 - The company reported a 17% organic growth excluding COVID impacts, indicating a strong recovery in Q2 [1] - For the first half of the year, the company is experiencing mid-teens top line growth and a 20% increase in orders, setting a positive outlook for the full year 2025 [1] - The performance across the entire portfolio has been strong, contributing to overall positive results [2]

Financial Data and Key Metrics Changes - The company reported a 17% organic growth excluding COVID for Q2, indicating a strong recovery [5][6] - For the first half of the year, the company achieved mid-teens top-line growth and a 20% increase in orders, leading to an upward revision of full-year guidance by 50 basis points despite a 100 basis point headwind from a specific gene therapy program [7][10] - EBITDA margin is around 19% this year, with a target of 30% in the coming years, expecting 1-2 points of margin improvement annually [67][68] Business Line Data and Key Metrics Changes - The monoclonal antibody business is performing well, contributing to overall growth [7] - New modalities accounted for about 17% of total sales in the first half, with gene therapy making up approximately 50% of that segment [14] - Instrument revenues increased by high teens, with orders up over 20%, indicating a recovery in hardware sales [18][20] - Chromatography sales and orders grew over 30%, attributed to a focus on big pharma and the successful switch to OPUS columns [52][53] Market Data and Key Metrics Changes - The biopharma segment saw revenue and orders increase over 20%, driven by a successful key account management strategy [26][28] - The company anticipates that the Chinese biopharma market will grow faster than other markets, particularly by 2026, due to increased investment and innovation [34][36] - Local competition in China has intensified, with several established companies in filtration and chromatography [37] Company Strategy and Development Direction - The company aims to double its business in the midterm, focusing on organic growth with limited acquisitions [77][78] - A specific strategy for the Chinese market is being developed, emphasizing collaboration with local companies [36][39] - The company is committed to innovation, with several new products and technologies expected to drive growth in the coming years [62][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a growth cycle for hardware, driven by limited capacity and increasing demand, particularly in Asia [25][24] - The company is not overly concerned about the impact of tariffs, expecting minimal effects on top-line revenue [65][66] - Management believes that pricing pressures from pharma reforms may create opportunities for the company to gain market share [72][74] Other Important Information - The company has $700 million in cash available for potential acquisitions, with a focus on technologies that complement existing workflows [78] - The company is actively looking for opportunities in the current market conditions, which may present assets at more affordable prices [77] Q&A Session Summary Question: Can you elaborate on the growth in the biopharma segment? - The biopharma revenue and orders increased over 20%, supported by a key account management strategy that has led to deeper relationships with major pharma companies [26][28] Question: What is the outlook for the Chinese market? - The Chinese biopharma market is expected to grow rapidly, with a need for a tailored strategy that considers local competition and collaboration [34][36] Question: How is the company addressing potential competition in filtration? - The company maintains a strong position in the ATF market, with most pharma companies now using ATF technology, and is confident in its competitive edge [40][41] Question: What is the impact of tariffs on the business? - The impact of tariffs is minimal, with only a couple of million dollars affecting top-line revenue, and the company has adjusted its pricing strategy accordingly [65][66] Question: What is the company's approach to M&A? - The company is actively looking for acquisition opportunities but emphasizes organic growth as the primary focus, with a significant cash reserve available for strategic purchases [77][78]

Financial Data and Key Metrics Changes - The company reported a 17% organic growth excluding COVID impacts, indicating a strong recovery [4][5] - Orders grew by 20% in the first half of the year, setting a positive outlook for 2025 [5] - The company increased its full-year guidance by 50 basis points despite a 100 basis point headwind from a specific gene therapy program [5] Business Line Data and Key Metrics Changes - The monoclonal antibody business performed well, contributing to overall growth [5] - New modalities accounted for about 17% of total sales in the first half, with gene therapy making up approximately 50% of that segment [11] - Instrument revenues increased by high teens, with orders up over 20%, indicating a recovery in the hardware segment [15][16] Market Data and Key Metrics Changes - Biopharma revenue and orders rose over 20% in the quarter, driven by strong performance across consumables and instruments [22] - The company noted a shift in the Chinese market towards innovative drugs, which is expected to accelerate growth in the biopharma sector [30][32] Company Strategy and Development Direction - The company is focusing on a key account management strategy, which has led to increased sales across multiple product lines [23][56] - There is a strong emphasis on innovation, with plans to double the size of the business in the midterm through both organic growth and potential acquisitions [47][74] - The company is actively developing a specific strategy for the Chinese market, recognizing the need to adapt to local competition and market dynamics [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a growth cycle for hardware, driven by limited capacity and increasing demand in markets like Asia [21] - The company anticipates that the biopharma market in China will grow faster than other markets by 2026, necessitating a tailored strategy [30][32] - Management highlighted the importance of maintaining a competitive edge in filtration technologies, particularly with ATF systems [37] Other Important Information - The company is experiencing minimal impact from tariffs, with only a couple of million dollars affecting top-line revenue [61][62] - EBITDA margins are stabilizing around 19%, with a target of reaching 30% in the coming years [63][64] Q&A Session Summary Question: Can you elaborate on the growth in the biopharma sector? - The company noted that biopharma revenue and orders increased over 20%, supported by strong performance across consumables and instruments [22] Question: What is the outlook for the Chinese market? - Management indicated that the Chinese biopharma market is expected to grow rapidly, with a need for a specific strategy to address local competition [30][32] Question: How is the company addressing the impact of tariffs? - The company reported minimal impact from tariffs, estimating a couple of million dollars in top-line effects [61][62] Question: What is the company's strategy for innovation? - The company is focused on leveraging recent innovations to drive growth, with plans to introduce new products and technologies in the coming years [58][59]

Company Overview - Repligen Corporation is a global life sciences company focused on developing and commercializing innovative bioprocessing technologies and systems that enhance the manufacturing efficiency of biological drugs [3] - The company serves primarily biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide, with a focus on areas such as Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins [3] - Repligen's corporate headquarters is located in Waltham, Massachusetts, with manufacturing sites in the U.S. and additional key locations in Estonia, France, Germany, Ireland, the Netherlands, and Sweden [3] Upcoming Investor Conferences - Repligen will attend the Wells Fargo Healthcare Conference from September 3 to 5 in Boston, where CEO Olivier Loeillot will participate in an analyst-led discussion on September 4 at 8:00 a.m. ET [4] - The company will also participate in the Deutsche Bank Healthcare Summit on September 10 and 11 in New York, with CFO Jason Garland engaging in 1x1 meetings on September 10 [4] - Additionally, Repligen will be present at the Bank of America Global Healthcare Conference from September 23 to 25 in London, where CEO Olivier Loeillot will take part in an analyst-led discussion on September 25 at 6:35 a.m. ET / 11:35 a.m. British Summer Time [4] Investor Relations - A live webcast of the conference presentations will be available on Repligen's Investor Relations website, with a replay accessible for a limited time after the events [2]

Group 1 - The article highlights Repligen Corporation (NASDAQ: RGEN) as a focus, noting that the company reported mixed second quarter results but raised its FY2025 guidance [1] - The Biotech Forum, led by Bret, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat discussions and weekly research updates [1] - The discussion within the Biotech Forum has been centered around covered call opportunities in recent quarters, indicating a strategic focus among investors [1]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended June 30, 2025, along with disclosures on market risk and internal controls [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Repligen Corporation's unaudited condensed consolidated financial statements, including balance sheets, income statements, equity statements, and cash flow statements, for the periods ended June 30, 2025, along with explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $708,855 | $757,355 | | Total current assets | $1,056,865 | $1,066,041 | | Goodwill | $1,114,009 | $1,030,995 | | Total assets | $2,901,627 | $2,829,666 | | Total current liabilities | $123,012 | $126,787 | | Total liabilities | $839,886 | $856,948 | | Total stockholders' equity | $2,061,741 | $1,972,718 | - Total assets increased to **$2.90 billion** as of June 30, 2025, from **$2.83 billion** at the end of 2024, primarily driven by an increase in goodwill from acquisitions[9](index=9&type=chunk) - Cash and cash equivalents decreased by **$48.5 million** during the first six months of 2025[9](index=9&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the company's financial performance, including revenue, income from operations, net income, and diluted EPS for the three and six months ended June 30, 2025 and 2024 Statement of Comprehensive Income Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $182,366 | $158,839 | $351,538 | $312,021 | | Income from operations | $13,896 | $5,469 | $20,474 | $9,219 | | Net income | $14,866 | $5,713 | $20,696 | $9,009 | | Diluted EPS | $0.26 | $0.10 | $0.37 | $0.16 | - Total revenue for Q2 2025 increased by **14.8%** year-over-year to **$182.4 million**[11](index=11&type=chunk) - Net income for Q2 2025 more than doubled to **$14.9 million** compared to **$5.7 million** in Q2 2024, with diluted EPS rising to **$0.26** from **$0.10**[11](index=11&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section details changes in stockholders' equity, reflecting net income, foreign currency translation adjustments, and other equity transactions for the period - Total stockholders' equity grew from **$1.97 billion** at the end of 2024 to **$2.06 billion** as of June 30, 2025[13](index=13&type=chunk) - The increase in stockholders' equity during the first six months of 2025 was primarily driven by net income of **$20.7 million** and a significant positive foreign currency translation adjustment of **$50.8 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,614 | $86,898 | | Net cash used in investing activities | ($81,947) | ($15,762) | | Net cash used in financing activities | ($15,161) | ($14,747) | | Net (decrease) increase in cash | ($48,500) | $57,823 | - Cash from operating activities decreased significantly to **$43.6 million** in the first half of 2025 from **$86.9 million** in the prior year period[16](index=16&type=chunk) - Investing activities used **$81.9 million** in H1 2025, largely due to **$70.0 million** spent on acquisitions, a substantial increase from **$15.8 million** in H1 2024[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, significant transactions, and specific financial items presented in the condensed consolidated financial statements - On March 4, 2025, the company acquired 908 Devices Inc.'s PAT Portfolio for cash consideration of **$69.9 million**, resulting in provisional goodwill of **$50.1 million**[40](index=40&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk) - The company's Restructuring Plan, initiated in July 2023, was completed in Q2 2025. Total pre-tax charges related to the plan amounted to **$83.3 million**, with **$4.1 million** incurred in the first six months of 2025[54](index=54&type=chunk)[55](index=55&type=chunk) - As of June 30, 2025, the company had **$600.0 million** in principal amount of 1.00% Convertible Senior Notes due 2028, with a carrying value of **$533.7 million**[69](index=69&type=chunk) - For the six months ended June 30, 2025, the company's effective tax rate was **20.9%**, a decrease from **29.2%** in the same period of 2024, primarily due to nontaxable contingent consideration and lower non-deductible stock-based compensation[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations for the three and six months ended June 30, 2025, covering revenue growth, acquisition impacts, gross margin, operating expenses, liquidity, and cash flows [Overview](index=28&type=section&id=Overview) This section provides a general description of Repligen Corporation's business, strategic initiatives, and recent acquisitions in the bioprocessing technology sector - Repligen is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems for manufacturing biological drugs[117](index=117&type=chunk) - The company's strategy involves both organic growth initiatives and targeted acquisitions to maximize its product platform's value[119](index=119&type=chunk) - Recent acquisitions include the 908 Devices PAT Portfolio in March 2025 and Tantti Laboratory Inc. in December 2024, aimed at strengthening the company's portfolio in process analytical technology and new modalities, respectively[122](index=122&type=chunk)[124](index=124&type=chunk)[126](index=126&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue trends, gross margin changes, and operating expense fluctuations for the reported periods Revenue Performance (in thousands) | Period | Total Revenue | YoY Growth | Product Revenue | YoY Growth | | :--- | :--- | :--- | :--- | :--- | | Q2 2025 | $182,366 | 14.8% | $182,329 | 14.8% | | H1 2025 | $351,538 | 12.7% | $351,466 | 12.7% | - Product revenue growth in H1 2025 was primarily driven by the Proteins, Chromatography, and Analytics franchises. The acquisition of 908 Devices contributed **$4.0 million** to revenue in H1 2025[130](index=130&type=chunk) - Q2 2025 gross margin decreased to **50.0%** from **51.3%** YoY, attributed to a product mix with higher sales of lower-margin procured resin for OPUS columns[134](index=134&type=chunk) - R&D expenses increased by **32.0%** in Q2 2025 and **23.2%** in H1 2025, primarily due to the recent acquisitions of 908 Devices PAT Portfolio and Tantti[137](index=137&type=chunk) - A gain of **$7.9 million** was recognized from the change in fair value of contingent consideration for the three and six months ended June 30, 2025, due to revised revenue forecasts for the Tantti acquisition[33](index=33&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, sources and uses of cash, and its ability to meet short-term and long-term financial obligations - The company held cash and cash equivalents of **$708.9 million** at June 30, 2025, down from **$757.4 million** at December 31, 2024[151](index=151&type=chunk) - Cash from operations for H1 2025 was **$43.6 million**, a decrease from **$86.9 million** in H1 2024, driven by unfavorable changes in working capital, including an increase in accounts receivable[154](index=154&type=chunk)[155](index=155&type=chunk) - Cash used in investing activities in H1 2025 was **$81.9 million**, primarily for the **$69.9 million** acquisition of the 908 Devices PAT Portfolio[157](index=157&type=chunk) - Management believes current cash balances are adequate to meet cash needs for at least the next **24 months**, excluding potential acquisitions[164](index=164&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states there were no material changes to its market risk exposure during the three months ended June 30, 2025, from what was disclosed in its 2024 Annual Report on Form 10-K - There were no material changes to the company's market risk exposure during the three months ended June 30, 2025[170](index=170&type=chunk) - The company refers to its Annual Report on Form 10-K for the year ended December 31, 2024, for a full discussion of its exposure to market risks[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses in internal control over financial reporting, for which a remediation plan is underway - Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025[173](index=173&type=chunk) - The ineffectiveness is due to previously disclosed material weaknesses in internal control over financial reporting related to: (1) revenue recognition, (2) IT general controls, and (3) certain business process-level controls[174](index=174&type=chunk)[177](index=177&type=chunk) - A remediation plan is in progress to address the identified deficiencies, including designing new controls, enhancing existing procedures, and hiring additional staff[176](index=176&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety disclosures, other information, and exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently aware of any legal proceedings or claims that would have a material adverse effect on its business, financial condition, or results of operations - The company is not currently aware of any legal proceedings or claims that are expected to have a material adverse effect on its business[181](index=181&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company states there are no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the period ended December 31, 2024 - There are no material changes to the risk factors described in the company's Form 10-K for the period ended December 31, 2024[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - None[183](index=183&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[185](index=185&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or officers adopted, modified, or terminated a Rule 10(b)5-1 trading plan during the fiscal quarter - No director or officer adopted, modified, or terminated a Rule 10(b)5-1 trading plan during the fiscal quarter ended June 30, 2025[186](index=186&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act - This section lists all exhibits filed with the report, including corporate governance documents and certifications required under the Sarbanes-Oxley Act[188](index=188&type=chunk)

Core Insights - Repligen Corporation has announced a strategic partnership with Novasign to integrate machine learning and modeling workflows into its filtration systems, with Repligen investing in Novasign to support its operational expansion [1][2][4] Group 1: Partnership Details - The collaboration will integrate Novasign's modeling workflow into Repligen's tangential flow filtration (TFF) systems, enhancing digitalization and process analytical technology (PAT) capabilities [2][4] - The partnership aims to streamline process development, enable real-time predictive control, and reduce development timelines and costs through digital twin technology [2][3] Group 2: Company Profiles - Novasign, founded in 2019, specializes in bioprocessing modeling technology and aims to accelerate bioprocess development through smart workflows and modeling platforms [5] - Repligen Corporation is a global life sciences company focused on innovative bioprocessing technologies, serving biopharmaceutical developers and contract development organizations [6]

Core Viewpoint - Repligen reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.40 per share, but showing an increase from $0.33 per share a year ago, resulting in an earnings surprise of -7.50% [1][2] Financial Performance - The company posted revenues of $182.37 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.56% and up from $154.07 million year-over-year [2] - Over the last four quarters, Repligen has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Repligen shares have declined approximately 16.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $175.08 million, and for the current fiscal year, it is $1.68 on revenues of $710.85 million [7] - The trend of estimate revisions for Repligen was favorable ahead of the earnings release, suggesting potential positive movements in stock price [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Repligen belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $182 million, reflecting a 15% increase year-over-year, with an 11% organic growth excluding acquisitions and currency effects, and a 17% organic non-COVID growth [26][27] - Adjusted income from operations was $22 million, up 8% year-over-year, with an adjusted operating margin of 12%, down 80 basis points from the previous year [30][31] - Adjusted fully diluted earnings per share for the second quarter were $0.37, down 6% year-over-year [32] Business Line Data and Key Metrics Changes - Chromatography revenue grew over 40%, driven by large-scale column demand from Pharma and Europe, while filtration revenue grew mid-teens excluding COVID [21][22] - Capital equipment revenue returned to growth in the high teens, with orders growing over 20% [12][22] - Consumable revenue and orders, excluding proteins, grew over 20% year-over-year, marking a record revenue quarter on a non-COVID basis [11][24] Market Data and Key Metrics Changes - North America represented 49% of total revenue, Europe 38%, and Asia Pacific 13%, with all regions growing in the mid-teens [27] - Orders from China rebounded to over 40% year-over-year, indicating a significant recovery [28][58] - Emerging biotech revenue grew in the high teens, although orders remained muted [10][60] Company Strategy and Development Direction - The company aims to be the global innovation leader in bioprocessing, focusing on differentiated data-driven solutions across therapeutic modalities [15][16] - Strategic investments are being made in manufacturing labor to serve customers better and preserve lead times [9] - The company plans to double its size in the medium term with modest M&A assumptions, while maintaining profitability and driving gross margin expansion [17][37] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the business momentum, highlighting strong order trends and broad-based demand across the portfolio [8][10] - The company is focused on customer-centric innovation to enable clients to produce therapies more efficiently [10][16] - Despite macro challenges, the company believes it can deliver differentiated growth and outpace industry growth by 5% [17][73] Other Important Information - The company published its 2024 corporate sustainability report, highlighting a 25% reduction in waste generation [20] - The company has taken price actions to offset inflation, resulting in a slight benefit to 2025 revenue [19] Q&A Session Summary Question: Can you elaborate on the growth seen on the clinical trial side versus commercial campaigns? - Management noted very little pull forward in orders, except for a couple of million in China due to tariff uncertainties, and emphasized that the business is still more clinical than commercial [44][45] Question: Can you size your exposure to gene therapy? - Management indicated minimal incremental revenue expected from the gene therapy platform for the remainder of 2025, representing a 1% headwind versus prior guidance [48][49] Question: What are the trends in capital equipment and China? - Management expressed optimism about capital equipment performance, attributing it to differentiated systems and a strong funnel, while also noting a significant rebound in orders from China [56][58] Question: What is the outlook for new modalities? - Management acknowledged a muted outlook for new modalities in the second half but emphasized strong growth in other areas, compensating for the headwind from gene therapy [66][68] Question: What is the expected market growth? - Management estimates market growth to be between 8% to 12%, with confidence in achieving growth above market levels [72][74]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $182 million, reflecting a 15% increase year-over-year, with an 11% organic growth excluding acquisitions and currency effects, and a 17% organic non-COVID growth [25][26][29] - Adjusted net income was $21 million, a decline of $1 million year-over-year, impacted by lower interest income and higher tax provisions [31] - Adjusted fully diluted earnings per share for the second quarter were $0.37, down 6% from $0.40 in the same period in 2024 [32] Business Line Data and Key Metrics Changes - Chromatography revenue grew over 40%, driven by large-scale column demand from Pharma and Europe [21] - Filtration revenue grew mid-teens, with strong orders and a record quarter for ATF order intake [20] - Capital Equipment revenue returned to growth in the high teens, with orders growing over 20% [10][11] Market Data and Key Metrics Changes - BioPharma revenues grew 20% year-over-year, with strong performance from large pharma accounts [9][10] - Orders from China rebounded significantly, growing over 40% year-over-year, indicating a potential recovery in the region [26][60] - Emerging Biotechs saw revenue growth in the high teens, although orders remained muted [10][62] Company Strategy and Development Direction - The company aims to be a global innovation leader in bioprocessing, focusing on differentiated data-driven solutions across therapeutic modalities [14][15] - Strategic investments are being made in manufacturing labor to meet customer demand and preserve lead times [7] - The company plans to double its size in the medium term with modest M&A assumptions, while maintaining profitability and driving gross margin expansion [16][37] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the momentum in business, highlighting strong order trends and broad-based demand across the portfolio [6][9] - The company is focused on delivering on its strategy despite macroeconomic challenges, emphasizing customer-centricity and innovation [8][15] - Future growth opportunities are seen in Asia, new modalities like ADCs and cell therapy, and trends like digitization [15][16] Other Important Information - The company published its 2024 corporate sustainability report, highlighting a 25% reduction in waste generation [19] - The company has taken price actions to offset inflation, resulting in a slight benefit to 2025 revenue [18] Q&A Session Summary Question: Can you elaborate on the growth seen on the clinical trial side versus commercial campaigns? - Management noted very little pull forward in orders, except possibly a couple of million in China due to tariff uncertainties [45][46] Question: What is the exposure to gene therapy platforms? - Management indicated minimal incremental revenue expected from the gene therapy platform for the remainder of 2025, representing a 1% headwind versus prior guidance [50][51] Question: Can you discuss the strength in capital equipment and the situation in China? - Management expressed optimism about capital equipment performance and noted a significant rebound in orders from China, attributing it to new leadership and innovation [58][60] Question: What is the outlook for new modalities? - Management expects muted demand in the second half for new modalities but remains confident in overall portfolio strength compensating for this headwind [70][71] Question: What is the expected market growth and the company's growth strategy? - Management estimates market growth at 8-12% and believes the company can outpace this by 5% through a diversified approach across multiple modalities and customers [74][76]