R Investor Presentation E ES 8 8 R 108 SUAO May 2020 Safe Harbor This presentation contains forward looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties which may cause our plans to change or actual results to differ materially from those anticipated. In particular, unforeseen events outside of our control ma ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-14656 REPLIGEN CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 04-2729386 (State or Other Jur ...

Repligen Corporation (NASDAQ:RGEN) Q1 2020 Earnings Conference Call May 6, 2020 8:30 AM ET Company Participants Sondra Newman - Senior Director, IR Tony Hunt - CEO & President Jon Snodgres - CFO & Secretary Conference Call Participants Tycho Peterson - JPMorgan John Kreger - William Blair Dan Arias - Stifel Puneet Souda - SVB Leerink Jacob Johnson - Stephens Inc. Paul Knight - Janney, Montgomery, Scott Brandon Couillard - Jefferies Matt Hewitt - Craig-Hallum Ram Selvaraju - H.C. Wainwright Operator Good day ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 Securities registered pursuant to Section 12(g) of the Act: None OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-14656 REPLIGEN CORPORATION (Exact name of registrant as speci ...

Repligen Corp. (NASDAQ:RGEN) Q4 2019 Earnings Conference Call February 20, 2020 8:30 AM ET Company Participants Sondra Newman - Senior Director, IR Anthony Hunt - CEO & President Jon Snodgres - CFO & Secretary Conference Call Participants Daniel Arias - Stifel, Nicolaus & Company Puneet Souda - SVB Leerink Ruizhi Qin - JPMorgan Chase & Co. Paul Knight - Janney Montgomery Scott John Kreger - William Blair & Company Matthew Hewitt - Craig-Hallum Edward Marks - H.C. Wainwright & Co. Jacob Johnson - Stephens In ...

Repligen Corporation November 2019 Investor Presentation 2 Safe Harbor This presentation contains forward looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties which may cause our plans to change or actual results to differ materially from those anticipated. In particular, unforeseen events outside of our cont ...

Financial Data and Key Metrics Changes - The company reported revenues of $69.4 million for Q3 2019, reflecting a growth of 42% at constant currency and 28% organic growth [30][31] - Adjusted operating income increased by 34% year-over-year to $15.1 million, with adjusted EPS rising 44% to $0.26 per fully diluted share [30][42] - The company raised its full-year revenue guidance to $267 million to $270 million, indicating growth of 38% to 39% [11][46] Business Line Data and Key Metrics Changes - Direct filtration and chromatography businesses experienced organic growth of over 40% for both the quarter and year-to-date [19][31] - C Technologies contributed approximately $7 million in revenue for Q3 and is on track to meet its target of $16 million to $17 million for the partial year [14][11] - The proteins business is expected to achieve over 15% growth for the year, marking the first such growth since 2015 [20][54] Market Data and Key Metrics Changes - North America accounted for 52% of direct product revenue year-to-date, with Asia Pacific growing at 44% and Europe at 26% [31] - Gene therapy represented 13% to 15% of total revenue, with expectations for growth as the market matures [64][88] Company Strategy and Development Direction - The company is focused on integrating C Technologies and expanding manufacturing capacity for filtration and chromatography products [12][15] - New product launches, particularly the TFDF technology, are seen as significant innovations in harvest clarification [17][76] - The company aims to maintain a long-term organic growth target of 10% to 15% [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 despite tough comparisons from the previous year [72] - The company is optimistic about the gene therapy market's growth potential, although it remains cautious about specific growth rates for 2020 [66][74] - The integration of C Technologies is progressing well, with a dedicated sales team being established [99][100] Other Important Information - The company generated free cash flow of $33.5 million year-to-date, with cash and cash equivalents totaling $513.5 million as of September 30, 2019 [43][42] - Adjusted gross margin for Q3 was 56.1%, with expectations for modestly lower margins in Q4 due to strategic investments [34][35] Q&A Session Summary Question: Dynamics of the protein business and lower ligands demand - Management noted strong growth in growth factors offsetting lower ligands demand, with confidence in achieving 15% organic growth for proteins [54] Question: Cross-selling opportunities with C Technologies - A dedicated sales team for C Technologies is being built to drive process analytics sales, with expectations for close collaboration with the existing sales force [56][58] Question: Overall market growth and share taking - The company has maintained a high growth rate, particularly in filtration and chromatography, with strong order demand [60][61] Question: Sustainability of gene therapy revenue - Gene therapy currently accounts for 13% to 15% of total revenue, with potential for growth as the market matures [64][66] Question: Integration progress of C Technologies - The integration is focused on building out the commercial organization, with no immediate revenue synergies expected in 2019 [100][101] Question: Capacity build-out priorities - The company is prioritizing capacity build-out for OPUS, ATF, and Spectrum businesses to meet strong demand [110][111]

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the unaudited interim financial statements and management's analysis of Repligen Corporation's financial condition and operational results [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%20(interim%20periods%20unaudited)) Interim unaudited financial statements for Q3 and YTD 2019 show significant growth in assets, liabilities, and equity, driven by acquisitions and financing activities [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20September%2030%2C%202019%20and%20December%2031%2C%202018) The balance sheets reflect significant increases in total assets, liabilities, and stockholders' equity from December 2018 to September 2019 Consolidated Balance Sheet Summary (in thousands) | Metric | September 30, 2019 (in thousands) | December 31, 2018 (in thousands) | | :--------------------------------- | :-------------------------------- | :--------------------------------- | | Total Assets | $1,378,708 | $774,621 | | Cash and cash equivalents | $513,454 | $193,822 | | Accounts receivable, net | $41,968 | $33,015 | | Inventories, net | $51,579 | $42,263 | | Property, plant and equipment, net | $43,034 | $32,180 | | Intangible assets, net | $216,289 | $135,438 | | Goodwill | $468,845 | $326,735 | | Total Liabilities | $333,590 | $159,053 | | Total Stockholders' Equity | $1,045,118 | $615,568 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202019%20and%202018) Revenue increased significantly for both the three and nine months ended September 30, 2019, with mixed net income performance Comprehensive Income (Loss) Summary (in thousands) | Metric (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenue | $69,445 | $49,529 | $200,771 | $142,090 | | Income from operations| $7,964 | $7,886 | $30,189 | $18,135 | | Net Income | $1,659 | $4,794 | $17,807 | $10,979 | | Basic EPS | $0.03 | $0.11 | $0.38 | $0.25 | | Diluted EPS | $0.03 | $0.10 | $0.37 | $0.24 | - Net income for the three months ended September 30, 2019, **decreased to $1,659k** from $4,794k in the prior year, while for the nine months ended September 30, 2019, it **increased to $17,807k** from $10,979k[12](index=12&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202019%20and%202018) Stockholders' equity substantially increased, driven by net income, stock issuances for acquisitions, and convertible notes - Total stockholders' equity **increased significantly from $615,568k** at December 31, 2018, to **$1,045,118k** at September 30, 2019[15](index=15&type=chunk) - Key drivers include net income, issuance of common stock for debt conversion, issuance of common stock for the C Technologies acquisition, the equity component of 0.375% senior convertible notes, and proceeds from common stock issuance[15](index=15&type=chunk) Change in Stockholders' Equity (Nine Months Ended Sep 30, 2019, in thousands) | Change in Stockholders' Equity (Nine Months Ended Sep 30, 2019, in thousands) | Amount | | :---------------------------------------------------------------- | :----- | | Balance at December 31, 2018 | $615,568 | | Net income | $17,807 | | Issuance of common stock for debt conversion | $198,757 | | Issuance of common stock for C Technologies, Inc. acquisition | $53,938 | | Equity component of 0.375% senior convertible notes, net of tax | $38,088 | | Proceeds from issuance of common stock, net | $320,713 | | Balance as of September 30, 2019 | $1,045,118 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202019%20and%202018) Cash flows show significant increases from financing activities, largely due to new debt and equity, while investing activities reflect acquisition outlays Cash Flow Activity (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity (Nine Months Ended Sep 30, in thousands) | 2019 | 2018 | | :------------------------------------------ | :----------- | :---------- | | Operating activities | $49,542 | $27,215 | | Investing activities | $(198,197) | $(8,580) | | Financing activities | $485,047 | $2,363 | | Effect of exchange rate changes | $(7,785) | $(4,453) | | Net increase in cash, cash equivalents and restricted cash | $328,607 | $16,545 | - Investing activities in 2019 were significantly impacted by the **$182.2 million cash outlay** for the C Technologies, Inc. acquisition[20](index=20&type=chunk) - Financing activities saw a substantial increase due to **$278.6 million from new convertible debt** and **$320.7 million from common stock issuance**, partially offset by **$115.0 million for the repayment** of senior convertible notes[20](index=20&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes provide detailed context on accounting policies, fair value measurements, acquisitions, revenue, leases, and other financial statement items [Note 1. Basis of Presentation](index=9&type=section&id=1.%20Basis%20of%20Presentation) The financial statements adhere to GAAP and SEC rules, consolidating subsidiaries and adopting new lease accounting standards - The consolidated financial statements are prepared in accordance with GAAP and SEC rules for Form 10-Q, including the accounts of Repligen and its wholly-owned subsidiaries, such as C Technologies, Inc. (acquired May 31, 2019)[22](index=22&type=chunk)[24](index=24&type=chunk) - The company adopted ASU 2016-02 (ASC 842) on Leases on January 1, 2019, recognizing operating lease Right-of-Use (ROU) assets of **$17.0 million** and lease liabilities of **$21.0 million**[31](index=31&type=chunk) [Note 2. Fair Value Measurements](index=10&type=section&id=2.%20Fair%20Value%20Measurements) The company utilizes a three-level fair value hierarchy, with significant cash and convertible notes valued using Level 1 inputs - The company uses a three-level fair value hierarchy for assets and liabilities[32](index=32&type=chunk) - As of September 30, 2019, cash and cash equivalents included **$414.7 million in money market accounts**, valued using Level 1 inputs[33](index=33&type=chunk)[35](index=35&type=chunk) - The fair value of the 0.375% Convertible Senior Notes due 2024 was **$287.9 million** as of September 30, 2019, determined by a Level 1 valuation based on recent trade activity[36](index=36&type=chunk) [Note 3. Acquisition of C Technologies, Inc.](index=11&type=section&id=3.%20Acquisition%20of%20C%20Technologies%2C%20Inc.) Details the acquisition of C Technologies for $239.9 million, resulting in significant goodwill and intangible assets - Repligen acquired C Technologies, Inc. on May 31, 2019, for a total purchase price of **$239.9 million**, consisting of **$186.0 million in cash** and **779,221 unregistered shares of common stock valued at $53.9 million**[40](index=40&type=chunk)[42](index=42&type=chunk) - The acquisition resulted in an estimated **$142.9 million in goodwill** and **$90.8 million in identifiable intangible assets**, including customer relationships (**$59.7M**) and developed technology (**$28.9M**)[40](index=40&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk) - C Technologies contributed **$7.0 million in revenue** and a **net loss of $1.2 million** for the three months ended September 30, 2019[47](index=47&type=chunk) [Note 4. Revenue Recognition](index=13&type=section&id=4.%20Revenue%20Recognition) Revenue primarily from product sales, with contributions from C Technologies and significant customers like MilliporeSigma and GE Healthcare Revenue Summary (in thousands) | Revenue (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :--------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Product revenue | $69,419 | $49,500 | $200,701 | $142,042 | | Royalty and other | $26 | $29 | $70 | $48 | | Total revenue | $69,445 | $49,529 | $200,771 | $142,090 | Revenue from Significant Customers (in thousands) | Revenue from Significant Customers (in thousands) | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :------------------------------------------------ | :-------------------------- | :-------------------------- | | GE Healthcare | $23,759 | $22,253 | | MilliporeSigma | $28,354 | $24,181 | - The acquisition of C Technologies added a new Process Analytics product line, including SoloVPE and FlowVPE systems, which complement existing Filtration, Chromatography, and Proteins franchises by enabling in-line protein concentration measurements[61](index=61&type=chunk) [Note 5. Leases](index=16&type=section&id=5.%20Leases) Adoption of ASC 842 led to recognition of operating lease ROU assets and liabilities, increasing due to facility expansion - Upon adopting ASC 842 on January 1, 2019, Repligen recognized operating lease ROU assets of **$17.0 million** and operating lease liabilities of **$21.0 million**[70](index=70&type=chunk) - As of September 30, 2019, these balances increased to **$24.8 million** and **$29.1 million**, respectively, partly due to new leases for facility expansion[73](index=73&type=chunk) Lease Cost (in thousands) | Lease Cost (in thousands) | 3 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2019 | | :------------------------ | :-------------------------- | :-------------------------- | | Operating lease cost | $1,207 | $3,119 | | Variable operating lease cost | $242 | $902 | | Total lease cost | $1,449 | $4,021 | [Note 6. Goodwill and Other Intangible Assets](index=18&type=section&id=6.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill and intangible assets significantly increased due to the C Technologies acquisition, with associated amortization expense - Goodwill increased from **$326,735k** at December 31, 2018, to **$468,845k** at September 30, 2019, primarily due to the **$142,903k goodwill** recognized from the C Technologies acquisition[76](index=76&type=chunk) - Net intangible assets increased from **$135,438k** at December 31, 2018, to **$216,289k** at September 30, 2019, also driven by the C Technologies acquisition[79](index=79&type=chunk) - Amortization expense for finite-lived intangible assets was **$9.6 million** for the nine months ended September 30, 2019[80](index=80&type=chunk) [Note 7. Consolidated Balance Sheet Detail](index=20&type=section&id=7.%20Consolidated%20Balance%20Sheet%20Detail) Provides detailed breakdowns of inventories, property, plant and equipment, and accrued liabilities, including construction in progress Balance Sheet Item Detail (in thousands) | Balance Sheet Item (in thousands) | September 30, 2019 | December 31, 2018 | | :-------------------------------- | :----------------- | :---------------- | | Inventories, net | $51,579 | $42,263 | | Property, plant and equipment, net| $43,034 | $32,180 | | Accrued liabilities | $25,770 | $15,865 | - Construction in progress as of September 30, 2019, includes **$4.9 million** primarily for manufacturing expansion projects at Waltham, MA, and Rancho Dominguez, CA facilities[82](index=82&type=chunk) [Note 8. Convertible Senior Notes](index=21&type=section&id=8.%20Convertible%20Senior%20Notes) Details the issuance of new 0.375% Convertible Senior Notes due 2024 and the settlement of prior 2.125% notes - In July 2019, Repligen issued **$287.5 million** aggregate principal amount of 0.375% Convertible Senior Notes due 2024 (2019 Notes), generating net proceeds of approximately **$278.6 million**[85](index=85&type=chunk) - The company settled its outstanding 2.125% Convertible Senior Notes due 2021 (2016 Notes) during Q3 2019, resulting in a **$5.6 million loss on extinguishment of debt**[93](index=93&type=chunk)[94](index=94&type=chunk) - As of September 30, 2019, the 2019 Notes had a carrying value of **$230.2 million** and a fair value of **$287.9 million**, classified as a long-term liability[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 9. Stockholders' Equity](index=23&type=section&id=9.%20Stockholders'%20Equity) Highlights public offerings of common stock, stock-based compensation expense, and shares available for future grants - Repligen completed public offerings in May and July 2019, raising approximately **$189.6 million** and **$131.1 million**, respectively, from the issuance of common stock[99](index=99&type=chunk)[100](index=100&type=chunk) Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :---------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total stock-based compensation | $3,175 | $2,779 | $9,459 | $7,672 | - As of September 30, 2019, **2,571,611 shares** were available for future grant under the 2018 Stock Option and Incentive Plan[101](index=101&type=chunk) [Note 10. Commitments and Contingencies](index=25&type=section&id=10.%20Commitments%20and%20Contingencies) Outlines facility lease expansions and strategic collaboration agreements with Sartorius Stedim Biotech and Navigo - The company expanded its Waltham, Massachusetts facility lease by approximately **32,000 square feet**, with full occupancy expected by Q3 2020[109](index=109&type=chunk) - Repligen entered a collaboration agreement with Sartorius Stedim Biotech to integrate XCell™ ATF cell retention control technology into bioreactors for continuous bioprocessing[111](index=111&type=chunk) - An agreement with Navigo for co-development of affinity ligands and a long-term supply agreement with Purolite for NGL-Impact™ A support the proteins business[112](index=112&type=chunk) [Note 11. Accumulated Other Comprehensive Loss](index=25&type=section&id=11.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss increased, primarily due to foreign currency translation adjustments - Accumulated other comprehensive loss increased from **$(11,893)k** at December 31, 2018, to **$(21,794)k** at September 30, 2019, primarily due to foreign currency translation adjustments[113](index=113&type=chunk) [Note 12. Income Taxes](index=25&type=section&id=12.%20Income%20Taxes) The effective tax rate decreased in Q3 2019 due to windfall benefits from stock option exercises and RSU vesting Effective Tax Rate | Effective Tax Rate | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :----------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Effective Tax Rate | 0.7% | 27.6% | 18.3% | 24.6% | - The lower effective tax rate in 2019 was primarily due to windfall benefits from stock option exercises and the vesting of restricted stock units[115](index=115&type=chunk) - The company adopted ASU 2016-16 in Q1 2018, which impacted deferred tax assets/liabilities and accumulated deficit[116](index=116&type=chunk) [Note 13. Earnings Per Share](index=26&type=section&id=13.%20Earnings%20Per%20Share) Basic and diluted EPS figures are presented, alongside an increase in weighted average diluted shares outstanding EPS Metric | EPS Metric | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :--------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic EPS | $0.03 | $0.11 | $0.38 | $0.25 | | Diluted EPS| $0.03 | $0.10 | $0.37 | $0.24 | - Weighted average diluted shares outstanding increased to **51,809k** for the three months ended September 30, 2019, from 45,828k in the prior year[126](index=126&type=chunk) [Note 14. Related Party Transactions](index=27&type=section&id=14.%20Related%20Party%20Transactions) Details rent expense incurred for facilities leased from a former owner of Spectrum LifeSciences, LLC - Repligen incurred **$0.4 million in rent expense** for the nine months ended September 30, 2019, related to facilities leased from a former owner of Spectrum LifeSciences, LLC[130](index=130&type=chunk) [Note 15. Segment Reporting](index=28&type=section&id=15.%20Segment%20Reporting) The company operates as a single segment, with revenue disaggregated by geographic region and significant customers - The company operates as one operating segment, with revenue disaggregated by geographic region and significant customers[133](index=133&type=chunk) Revenue by Geographic Location | Revenue by Geographic Location | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :----------------------------- | :-------------------------- | :-------------------------- | | North America | 51% | 47% | | Europe | 37% | 41% | | APAC | 12% | 12% | Revenue from Significant Customers (% of Total Revenue) | Revenue from Significant Customers (% of Total Revenue) | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :------------------------------------------------------ | :-------------------------- | :-------------------------- | | GE Healthcare | 12% | 16% | | MilliporeSigma | 14% | 17% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth from bioprocessing products and the C Technologies acquisition, alongside increased operating expenses and financing activities [Overview](index=29&type=section&id=Overview) Repligen is a leading provider of advanced bioprocessing technologies, offering solutions to enhance manufacturing efficiencies for biologic drugs - Repligen is a leading provider of advanced bioprocessing technologies and solutions, focused on increasing manufacturing efficiencies and flexibility for biologic drugs[138](index=138&type=chunk) - Key product lines include OPUS® pre-packed chromatography columns, XCell ATF™ systems, TangenX flat-sheet filters, Spectrum filtration brands (KrosFlo®, ProConnex®), Protein A ligands, and growth factors[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [C Technologies Acquisition](index=29&type=section&id=C%20Technologies%20Acquisition) The acquisition of C Technologies, Inc. for $239.9 million enhances bioprocessing with real-time protein concentration measurement platforms - The acquisition of C Technologies, Inc. was consummated on May 31, 2019, for a total purchase price of **$239.9 million**[143](index=143&type=chunk)[146](index=146&type=chunk) - C Technologies provides SoloVPE and FlowVPE instrument platforms for measuring protein concentration using Slope Spectroscopy, enabling real-time process monitoring in bioprocessing[144](index=144&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company refers to its Annual Report on Form 10-K for a detailed description of its critical accounting policies and estimates - The company refers to its Annual Report on Form 10-K for the year ended December 31, 2018, for a description of its critical accounting policies and estimates[147](index=147&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Analysis of revenue, costs, operating expenses, and other income/expenses for the three and nine months ended September 30, 2019 [Revenues](index=30&type=section&id=Revenues) Product revenue experienced significant growth, driven by increased adoption of chromatography and filtration products and the C Technologies acquisition Revenue Summary (in thousands) | Revenue (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | % Change | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | % Change | | :--------------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Products | $69,419 | $49,500 | 40.2% | $200,701 | $142,042 | 41.3% | | Total revenue | $69,445 | $49,529 | 40.2% | $200,771 | $142,090 | 41.3% | - Product revenue growth was driven by increased adoption of chromatography and filtration products and contributions from C Technologies (**$7.0 million for Q3 2019** and **$9.1 million for YTD 2019**)[152](index=152&type=chunk) - Direct sales accounted for approximately **80% of product revenue in Q3 2019** and **75% for YTD 2019**, with an expectation for this trend to continue[150](index=150&type=chunk) [Costs and operating expenses](index=31&type=section&id=Costs%20and%20operating%20expenses) Cost of product revenue, R&D, and SG&A all increased, influenced by the C Technologies acquisition and operational expansion Costs and Operating Expenses (in thousands) | Expense (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | % Change | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | % Change | | :--------------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Cost of product revenue| $31,425 | $22,183 | 41.7% | $88,978 | $62,939 | 41.4% | | Research and development| $5,427 | $3,601 | 50.7% | $14,278 | $12,669 | 12.7% | | Selling, general and administrative | $24,629 | $15,859 | 55.3% | $67,326 | $48,347 | 39.3% | | Total costs and operating expenses | $61,481 | $41,643 | 47.6% | $170,582 | $123,955 | 37.6% | - Gross margins were **54.7% for Q3 2019** and **55.7% for YTD 2019**, or **55.2% and 56.4% respectively**, excluding **$0.3 million (Q3)** and **$1.5 million (YTD)** of inventory step-up amortization from the C Technologies acquisition[157](index=157&type=chunk) - SG&A costs increased due to the C Technologies acquisition (**$4.7 million for Q3** and **$6.2 million for YTD**), expansion of customer-facing activities, administrative infrastructure buildout, and **$4.0 million in acquisition-related transaction fees (YTD)**[162](index=162&type=chunk)[163](index=163&type=chunk) [Other expenses, net](index=32&type=section&id=Other%20expenses%2C%20net) Investment income increased, but a significant loss on debt extinguishment and higher interest expense led to increased net other expenses Other Expenses, Net (in thousands) | Other Expenses, Net (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | % Change | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | % Change | | :--------------------------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Investment income | $1,898 | $558 | 240.1% | $3,616 | $1,251 | 189.0% | | Loss on extinguishment of debt | $(5,650) | — | 100.0% | $(5,650) | — | 100.0% | | Interest expense | $(2,857) | $(1,687) | 69.4% | $(6,326) | $(5,008) | 26.3% | | Total other expense, net | $(6,293) | $(1,263) | 398.3% | $(8,383) | $(3,570) | 134.8% | - Investment income increased due to higher average invested cash balances and interest rates[165](index=165&type=chunk) - A **$5.6 million loss on extinguishment of debt** resulted from settling the 2016 Convertible Senior Notes[166](index=166&type=chunk) - Interest expense rose due to the issuance of the 2019 Convertible Senior Notes and related amortization, partially offset by the settlement of the 2016 Notes[167](index=167&type=chunk)[168](index=168&type=chunk) [Income tax provision](index=33&type=section&id=Income%20tax%20provision) The income tax provision and effective tax rate were significantly lower in Q3 2019 due to windfall benefits from stock-based compensation Income Tax Metric | Income Tax Metric | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | % Change | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | % Change | | :---------------- | :-------------------------- | :-------------------------- | :------- | :-------------------------- | :-------------------------- | :------- | | Income tax provision | $12 | $1,829 | (99.3%) | $3,999 | $3,586 | 11.5% | | Effective tax rate| 0.7% | 27.6% | | 18.3% | 24.6% | | - The effective tax rate for Q3 2019 was significantly lower (**0.7%**) compared to Q3 2018 (**27.6%**), primarily due to windfall benefits from stock option exercises and RSU vesting[171](index=171&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Presents adjusted income from operations, net income, and EBITDA, excluding specific non-recurring and non-cash items for operational clarity Non-GAAP Metric (in thousands) | Non-GAAP Metric (in thousands) | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :----------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Adjusted income from operations| $15,131 | $11,299 | $50,807 | $28,354 | | Adjusted net income | $13,326 | $8,215 | $41,697 | $21,187 | | Adjusted EBITDA | $17,285 | $12,438 | $56,514 | $32,412 | - Non-GAAP measures exclude acquisition and integration costs, intangible amortization, inventory step-up charges, loss on extinguishment of debt, non-cash interest expense, and their tax effects to provide a more accurate comparison of ongoing operational performance[173](index=173&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and working capital significantly increased, providing adequate liquidity for at least the next 24 months, excluding potential acquisitions - Non-restricted cash and cash equivalents increased to **$513.5 million** at September 30, 2019, from **$193.8 million** at December 31, 2018[179](index=179&type=chunk) - Working capital increased by approximately **$436.9 million** to **$582.8 million** at September 30, 2019, from **$145.9 million** at December 31, 2018[191](index=191&type=chunk) - The company believes current cash balances are adequate for at least the next 24 months, absent acquisitions, and expects increased operating expenses for new product development and commercial capabilities[192](index=192&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=37&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Highlights various risks and uncertainties associated with forward-looking statements, including collaborations, acquisitions, and market acceptance - The report contains forward-looking statements subject to various risks and uncertainties, including the success of collaborations, ability to grow the bioprocessing business (including acquisitions), regulatory approvals, intellectual property, manufacturing capabilities, market acceptance, competition, and ability to raise additional capital[197](index=197&type=chunk)[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company assesses market risks, primarily interest rate and foreign exchange, with no direct interest rate exposure and unhedged foreign currency exposures [Interest Rate Risk](index=38&type=section&id=Interest%20Rate%20Risk) The company has no direct interest rate exposure due to the absence of investments in interest-sensitive securities - As of September 30, 2019, the company held no investments in commercial paper, U.S. Government/agency securities, or corporate bonds, resulting in no direct interest rate exposure[199](index=199&type=chunk) - A hypothetical **100 basis point increase** in interest rates would have no effect on the company's cash position[199](index=199&type=chunk) [Foreign Exchange Risk](index=38&type=section&id=Foreign%20Exchange%20Risk) Primary foreign currency exposures include the Swedish kronor, Euro, and British pound, which are currently unhedged - The company's primary foreign currency exposures are the Swedish kronor, Euro, and British pound[201](index=201&type=chunk) - Fluctuations in exchange rates may adversely affect results of operations, financial position, and cash flows, but the company does not currently hedge this exposure[201](index=201&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective, with internal control assessment excluding C Technologies and new ERP system implementation modifying controls [Disclosure Controls and Procedures](index=38&type=section&id=Disclosure%20Controls%20and%20Procedures) Management affirmed the effectiveness of the company's disclosure controls and procedures as of September 30, 2019 - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2019[202](index=202&type=chunk) [Changes in Internal Control](index=39&type=section&id=Changes%20in%20Internal%20Control) Internal control assessment excluded C Technologies, and a new ERP system implementation led to control modifications - The assessment of internal control over financial reporting excluded the C Technologies business, acquired on May 31, 2019, in accordance with SEC guidance for newly acquired businesses[204](index=204&type=chunk) - The company initiated the phased implementation of a new ERP system, which resulted in modifications to existing internal controls and implementation of new controls over financial reporting as of September 30, 2019[205](index=205&type=chunk) [PART II—OTHER INFORMATION](index=40&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently aware of any legal proceedings or claims that are expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not currently aware of any material adverse legal proceedings or claims[208](index=208&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors previously described in the company's Quarterly Report on Form 10-Q for the period ended March 31, 2019 - No material changes to the risk factors described in the Quarterly Report on Form 10-Q for the period ended March 31, 2019[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported unregistered sales of equity securities related to the acquisition of C Technologies and the exchange and redemption of its 2016 Convertible Senior Notes [C Technologies Acquisition](index=40&type=section&id=C%20Technologies%20Acquisition%20(Item%202)) Unregistered shares were issued as part of the C Technologies acquisition consideration, relying on Rule 506(b) of Regulation D - On May 31, 2019, the company issued **779,221 unregistered shares of common stock**, valued at **$53.9 million**, as part of the consideration for the C Technologies acquisition, in reliance upon Rule 506(b) of Regulation D[210](index=210&type=chunk) [Exchange and Redemption of 2016 Notes](index=40&type=section&id=Exchange%20and%20Redemption%20of%202016%20Notes) The company exchanged and settled its 2016 Convertible Senior Notes for cash and common stock in private transactions - The company exchanged **$92.0 million** aggregate principal amount of its 2016 Convertible Senior Notes for cash and **1,850,155 shares of common stock** in private placement transactions[211](index=211&type=chunk)[213](index=213&type=chunk) - The remaining 2016 Notes were settled for **$23.0 million in cash** and **466,045 shares of common stock**[213](index=213&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[214](index=214&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[215](index=215&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No other information to report - None[216](index=216&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including organizational documents, indentures for convertible notes, and certifications - Key exhibits include the Restated Certificate of Incorporation, Second Amended and Restated Bylaws, Base Indenture and First Supplemental Indenture for the 0.375% Convertible Senior Notes due 2024, and Rule 13a-14(a)/15d-14(a) Certifications[218](index=218&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report was officially signed by the President and CEO, and the Chief Financial Officer on October 31, 2019 - The report was signed by Tony J. Hunt, President and Chief Executive Officer, and Jon Snodgres, Chief Financial Officer, on October 31, 2019[222](index=222&type=chunk)

Repligen Corporation (NASDAQ:RGEN) Q2 2019 Results Conference Call August 1, 2019 8:30 AM ET Company Participants Sondra Newman - Global Head of Investor Relations Tony Hunt - President and Chief Executive Officer Jon Snodgres - Chief Financial Officer Conference Call Participants Tycho Peterson - JPMorgan John Kreger - William Blair Matt Hewitt - Craig-Hallum Brandon Couillard - Jefferies Paul Knight - Janney, Montgomery, Scott Steve Schwartz - First Analysis Edward White - HC Wainwright Operator Good day ...

Revenue and Growth - Total revenue for Q2 2019 increased by 48.1% to $70.7 million compared to Q2 2018, with product revenue rising by 48.0% to $70.7 million [151]. - Product revenue from chromatography and filtration products significantly contributed to the overall revenue growth, reflecting strong adoption by key bioprocessing customers [154]. - Revenue increased by 48% year-to-date, leading to an increase in accounts receivable that consumed $7.3 million [189]. Expenses and Margins - Gross margins for Q2 2019 were 56.6%, with an adjusted margin of 58.2% excluding amortization related to the C Technologies acquisition [159]. - Research and development expenses decreased by 9.5% in Q2 2019 compared to Q2 2018, primarily due to reduced investment in protein product development [161]. - Selling, general and administrative expenses increased by 42.9% in Q2 2019, driven by expansion in customer-facing activities and infrastructure [164]. - Total costs and operating expenses rose by 37.2% in Q2 2019, primarily due to increased product revenue and associated costs [157]. Income and Profitability - Non-GAAP adjusted income from operations for the three months ended June 30, 2019, was $20.1 million, compared to $7.8 million in 2018, representing a significant increase [175]. - Non-GAAP adjusted net income for the six months ended June 30, 2019, was $28.4 million, compared to $14.1 million in 2018, indicating a growth of 102.0% [177]. - Adjusted EBITDA for the six months ended June 30, 2019, was $39.2 million, up from $20.0 million in 2018, reflecting a 96.5% increase [178]. Cash Flow and Financing - Cash and cash equivalents as of June 30, 2019, were $208.9 million, an increase from $193.8 million at December 31, 2018 [180]. - The company completed a public offering in May 2019, raising approximately $190.2 million, which was partially used to fund the C Technologies acquisition [183]. - Cash provided by financing activities was $190.2 million, primarily from the issuance of common stock totaling $189.6 million [194]. - For the six months ended June 30, 2019, operating activities provided cash of $27.6 million, reflecting a net income of $16.1 million and non-cash charges totaling $18.5 million [189]. Acquisitions - The acquisition of C Technologies was completed for a total purchase price of $239.9 million, enhancing the company's product offerings in bioprocessing technology [148]. - The company acquired C Technologies for $239.9 million, funded by approximately $195.0 million in cash and 779,221 shares of common stock valued at $53.9 million [180]. - The acquisition of C Technologies on May 31, 2019, resulted in a cash outflow of $182.2 million [193]. Future Outlook - The company expects research and development expenses to increase slightly for the remainder of the year to support new product development [162]. - Future capital requirements will depend on various factors, including the expansion of the bioprocessing business and potential acquisitions [195]. - The company plans to continue investing in bioprocessing and key research and development activities for new products [196]. Tax and Interest - The income tax provision for the three and six months ended June 30, 2019, was $1.5 million and $4.0 million, respectively, reflecting an increase of 142.3% and 126.9% compared to the same periods in 2018 [171]. - Interest expense rose by $0.1 million for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to a decrease in the balance of debt issuance costs being amortized [169]. Investment Income - Investment income increased by 96.3% in Q2 2019, contributing positively to the overall financial performance [167]. - Investment income increased by $0.5 million and $1.0 million for the three and six months ended June 30, 2019, respectively, compared to the same periods in 2018, due to higher average invested cash balances and interest rates [168]. Other Financial Information - The company has no off-balance sheet financing arrangements as of June 30, 2019 [197]. - The company had utilized its remaining $19.5 million of net operating loss carryforwards as of December 31, 2018 [200]. - The company does not currently hedge foreign currency exposure, which includes currencies such as the Swedish kronor, Euro, and British pound [206].