Repligen (RGEN) FY Conference June 03, 2025 02:20 PM ET Speaker0 Everyone. Thank you for joining us for the repligen management presentation. My name is Matt Larue. I cover repligen here at Flair. I'm very pleased to be joined this morning by Olivier Lailleaux. Before we get to the presentation, I want to mention two things. First, the breakout session is in the Richardson Room on the Second Floor. And then second, I am required to inform you that for a complete list of our disclosures or conflicts of inter ...

Company Overview - Repligen (RGEN) shares have decreased by approximately 12.2% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is essential to understand the key drivers affecting the stock [1] Earnings Estimates - Estimates for Repligen have trended downward, with a consensus estimate shift of -5.33% in the past month [2] VGM Scores - Repligen has a Growth Score of B, but a low Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for value investment strategy [3] - The overall aggregate VGM Score for Repligen is C, which is relevant for investors not focused on a single strategy [3] Market Outlook - The downward trend in estimates indicates a negative outlook for Repligen, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Comparison - Repligen is part of the Zacks Medical - Biomedical and Genetics industry, where Gilead Sciences (GILD) has seen a 1.8% increase in stock price over the past month [5] - Gilead reported revenues of $6.67 billion for the last quarter, reflecting a year-over-year decline of -0.3%, with an EPS of $1.81 compared to -$1.32 a year ago [5] - For the current quarter, Gilead is expected to report earnings of $1.99 per share, indicating a -1% change from the previous year, with a slight estimate change of -0.1% over the last 30 days [6]

Core Insights - Repligen Corporation has published its 2024 Corporate Sustainability Report themed "Perspectives on Progress," highlighting advancements in sustainability across six key impact areas: Products & Packaging, Operations, Talent, Supply Chain, Communities, and Partnerships & Pathways [1][2] - The report includes disclosures aligned with the United Nations Sustainable Development Goals (UN SDGs) and key reporting frameworks such as the Global Reporting Initiative (GRI) Standards and Sustainability Accounting Standards Board (SASB) [1] Sustainability Highlights - The company transitioned to 100% renewable electricity across all 19 manufacturing sites, representing 100% of total global consumption [6] - Waste generation was reduced by 25%, and total waste intensity decreased by 32% on a normalized-to-revenue basis from 2023 to 2024 [6] - The global Scope 3 emissions inventory was expanded to cover all material emissions categories, increasing from 9 to 11 out of 15 compared to 2023 [6] - Repligen completed the UNGC Network USA Business and Human Rights Accelerator program, integrating the learnings into its corporate sustainability strategy [6] - A new customer-focused Repligen Training and Innovation Center (RTIC) was opened in Waltham, MA [6]

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 primarily serves biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide [3] - Key focus areas include Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins [3] Upcoming Event - Repligen will participate in the William Blair 45th Annual Growth Stock Conference from June 3 to June 5 in Chicago [1] - Olivier Loeillot, President and CEO, is scheduled to present a company overview on June 3 at 1:20 p.m. CT [1] - A live webcast of the presentation will be available on Repligen's Investor Relations website and will be accessible for replay for a limited time after the event [2]

Summary of Repligen (RGEN) Conference Call Company Overview - **Company**: Repligen Corporation (RGEN) - **Event**: RBC Capital Markets 2025 Global Healthcare Conference - **Date**: May 20, 2025 Key Points Financial Guidance and Performance - The guidance for Q1 included the acquisition of the nine zero eight devices, contributing approximately $10 million in sales, slightly accretive to gross margin but dilutive to operating margin by 50 basis points [2][3] - Foreign exchange (FX) had a significant impact, initially projected as a 1.5-point headwind but later adjusted to a 0.5-point tailwind, indicating improved conditions [3][5] - Tariffs were not included in the initial guidance, but potential sales increases from surcharges and pricing adjustments were noted, estimated at just under a point of sales increase [5][9] Tariff Impacts - Majority of manufacturing is in the U.S., with 90% of U.S. sales also produced domestically, minimizing tariff impacts [9][10] - Approximately 2% of sales are exposed to China, with less than $5 million in sales exposure anticipated due to tariffs [12][13] - The company is exploring dual manufacturing capabilities in Europe to mitigate potential tariff impacts [16][18] - Customer response to surcharges has been generally positive, with no significant pushback reported [21][22] Market Dynamics and Growth - Repligen reported a 14% growth in Q1, significantly above the high single-digit growth of the bioproduction market, indicating strong performance [29][32] - The company expects organic non-COVID growth to be between 11.5% and 15.5% for the year, aligning with broader market trends [31][32] - The ATF (Alternating Tangential Flow) product line is expected to see growth in the second half of the year, despite tough comparisons in Q1 [34][36] Customer Engagement and Opportunities - Repligen is engaged with nine out of the ten largest Contract Development and Manufacturing Organizations (CDMOs), indicating strong market positioning and potential for expansion [35][36] - The company is optimistic about growth opportunities in China, despite current headwinds, and has strengthened its leadership in the region [45][47] Manufacturing and Capital Deployment - The company is considering expanding U.S. manufacturing capabilities in response to industry trends towards onshoring [48][49] - Repligen has a consistent M&A strategy focused on acquiring differentiated products that can enhance their portfolio, particularly in bioprocessing workflows [56][57] - The company aims for a balance between revenue growth and margin improvement in its acquisition strategy [58][59] Conclusion - Repligen is navigating a complex landscape of tariffs, FX fluctuations, and market dynamics while maintaining a strong growth trajectory. The company is well-positioned to capitalize on opportunities in both domestic and international markets, particularly through strategic acquisitions and enhanced manufacturing capabilities.

Company Overview - Repligen Corporation is a global life sciences company focused on developing and commercializing innovative bioprocessing technologies and systems for manufacturing biological drugs [3] - The company operates primarily in areas such as Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins [3] - Repligen's headquarters is located in Waltham, Massachusetts, with manufacturing sites in the U.S. and additional locations in Estonia, France, Germany, Ireland, the Netherlands, and Sweden [3] Upcoming Events - Repligen will participate in the RBC Capital Markets' 2025 Global Healthcare Conference in New York on May 20-21, where CFO Jason K. Garland will engage in an analyst-led discussion and one-on-one meetings with investors [4] - The company will also attend Craig-Hallum's 22nd Annual Institutional Investor Conference in Minneapolis on May 28, with CFO Jason K. Garland participating in one-on-one meetings [4] Investor Relations - A live webcast of the RBC conference presentation will be available on Repligen's Investor Relations website, with a replay accessible for a limited time after the event [2]

Core Insights - Repligen Corporation reported first-quarter 2025 adjusted earnings per share of 39 cents, exceeding the Zacks Consensus Estimate of 35 cents and up from 30 cents in the same quarter last year [1][5] - Total revenues reached $169 million, reflecting a 10% year-over-year increase, and an 11% organic growth when excluding acquisition and currency impacts, surpassing the Zacks Consensus Estimate of $164 million [2][6] - The company anticipates total revenues for 2025 to be between $695 million and $720 million, slightly higher than previous guidance, while adjusted EPS is expected to be between $1.63 and $1.72, down from earlier estimates [10][11] Financial Performance - Product revenues were $169.1 million, marking a 10.5% increase from the previous year, while royalty and other revenues decreased by 2.7% to $0.04 million [5][6] - Adjusted gross margin improved to 53.7% from 49.2% year-over-year, with adjusted operating income rising to $23.4 million compared to $13.6 million in the prior year [8][9] - Total orders grew nearly 20%, with all four business franchises experiencing double-digit growth [6] Business Segments - Revenues from biopharma and consumables increased by over 20% year-over-year, driven by strong orders, although CDMO sales saw a slight decline [7] - The company reported 14% organic non-COVID revenue growth for the first quarter, indicating robust performance in its core business segments [6] Guidance and Outlook - Repligen expects adjusted gross margin for 2025 to be between 52% and 53%, reflecting a 100 basis point increase from previous expectations [11] - The updated guidance incorporates the impact of the acquisition of 908 Devices' bioprocessing analytics business, which aims to enhance Repligen's process analytical technology portfolio [11] - The company reiterated its organic revenue growth guidance for 2025 in the range of 9.5% to 13.5% [11]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Repligen Corporation's unaudited condensed consolidated financial statements for Q1 2025 and 2024, along with detailed notes on significant financial activities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to **$2.85 billion** as of March 31, 2025, driven by goodwill and intangible assets from acquisitions, while total liabilities rose to **$866.7 million** Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $697,229 | $757,355 | | Total current assets | $1,032,465 | $1,066,041 | | Goodwill | $1,082,413 | $1,030,995 | | Intangible assets, net | $409,225 | $397,897 | | **Total assets** | **$2,852,143** | **$2,829,666** | | **Liabilities & Equity** | | | | Total current liabilities | $151,996 | $126,787 | | Convertible Senior Notes due 2028, net | $529,605 | $525,567 | | **Total liabilities** | **$866,660** | **$856,948** | | **Total stockholders' equity** | **$1,985,483** | **$1,972,718** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Q1 2025 total revenue increased **10.4%** to **$169.2 million**, with net income rising to **$5.8 million** and diluted EPS reaching **$0.10** Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $169,172 | $153,182 | | Income from Operations | $6,578 | $3,750 | | Net Income | $5,830 | $3,296 | | Diluted EPS | $0.10 | $0.06 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to **$1.985 billion** by March 31, 2025, primarily due to **$5.8 million** in net income and **$7.3 million** in stock-based compensation - Key changes in stockholders' equity for Q1 2025 include a **$5.8 million** increase from net income and a **$7.3 million** increase from stock-based compensation expense[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow significantly decreased to **$15.0 million**, with investing activities using **$74.1 million** primarily for an acquisition, leading to a **$60.1 million** overall cash decrease Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,005 | $44,708 | | Net cash used in investing activities | ($74,108) | ($8,362) | | Net cash used in financing activities | ($5,030) | ($8,974) | | **Net (decrease) increase in cash** | **($60,126)** | **$29,294** | - The primary use of cash in investing activities was **$69.7 million** for an acquisition, net of cash acquired[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, fair value measurements, recent acquisitions, restructuring, revenue recognition, goodwill, debt, equity, income taxes, and segment reporting - On March 4, 2025, the Company acquired 908 Devices Inc.'s PAT Portfolio for cash consideration of **$69.9 million**, resulting in **$50.1 million** of goodwill[39](index=39&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - The company recorded pre-tax restructuring charges of **$2.0 million** in Q1 2025 as part of its ongoing Restructuring Plan initiated in July 2023[52](index=52&type=chunk)[53](index=53&type=chunk) - The effective tax rate for Q1 2025 was **26.6%**, compared to **10.8%** for Q1 2024, primarily due to higher pre-tax income and lower stock windfall tax benefits[92](index=92&type=chunk) - The company operates as a single reportable segment, with Q1 2025 revenue geographically distributed as **50% North America**, **35% Europe**, and **15% APAC/Other**[100](index=100&type=chunk)[102](index=102&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a **10.4%** revenue increase driven by product performance, the impact of acquisitions, and the company's liquidity position [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased **10.4%** to **$169.2 million**, with gross margin improving to **53.6%**, while operating expenses, particularly SG&A, also rose Revenue and Gross Margin Comparison | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $169.2M | $153.2M | +10.4% | | Gross Margin | 53.6% | 50.1% | +3.5 p.p. | - The increase in product revenue was mainly due to timing of sales for Proteins and strong performance in the Chromatography and Analytics franchises, with newly acquired 908 Devices products contributing **$1.0 million**[119](index=119&type=chunk) - SG&A costs increased by **$9.5 million** (**15.3%**), primarily driven by a **$6.3 million** increase in professional services related to acquisition and integration activities[128](index=128&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to **$697.2 million** by March 31, 2025, primarily due to the **$69.7 million** acquisition, with operating cash flow also declining due to working capital changes - Cash and cash equivalents stood at **$697.2 million** at the end of Q1 2025[135](index=135&type=chunk) - Working capital decreased by **$58.8 million** to **$880.5 million**, primarily due to the 908 Devices PAT Portfolio acquisition in March 2025[136](index=136&type=chunk) - Cash from operating activities decreased by **$29.7 million** YoY, driven by an increase in accounts receivable and a decrease in accounts payable and accrued expenses[139](index=139&type=chunk)[140](index=140&type=chunk) - The company believes current cash balances are adequate to meet cash needs for at least the next 24 months, absent major acquisitions or debt conversions[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk exposure were reported during Q1 2025 compared to the prior annual report - There were no material changes to the company's market risk exposure during Q1 2025[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to previously identified material weaknesses in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025[157](index=157&type=chunk) - The ineffectiveness is due to three previously reported material weaknesses concerning: 1) revenue recognition controls, 2) IT general controls (access and change management), and 3) business process controls for inventory valuation and financial close[158](index=158&type=chunk)[162](index=162&type=chunk) - A remediation plan is being implemented to address the deficiencies, but the material weaknesses have not yet been remediated[159](index=159&type=chunk)[160](index=160&type=chunk)[163](index=163&type=chunk) [PART II - OTHER INFORMATION](index=34&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material legal proceedings or claims that would adversely affect its business or financial condition - The company is not aware of any material legal proceedings or claims against it[166](index=166&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the most recent Form 10-K have been reported - No material changes to risk factors from the most recent Form 10-K have been reported[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[168](index=168&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading plan activities by directors or officers were reported for the fiscal quarter ended March 31, 2025 - No Rule 10b5-1 trading plan activities by directors or officers were reported for the quarter[171](index=171&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents

Repligen (RGEN) Q1 2025 Earnings Call April 29, 2025 01:53 PM ET Speaker0 Good day, ladies and gentlemen, and welcome to Repligen Corporation's First Quarter of twenty twenty five Earnings Conference Call. My name is Dovan, and I will be your coordinator. All participants will be in the listen only mode. Please note that there will be a question and answer session following the company's formal remarks. The company would like to note that there will be a limited timeframe for Q and A, and as such, managemen ...

Core Viewpoint - Repligen (RGEN) reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.28 per share a year ago, indicating a positive earnings surprise of 11.43% [1][2] Financial Performance - The company achieved revenues of $169.17 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.85% and up from $151.35 million year-over-year [2] - Over the last four quarters, Repligen has exceeded consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance and Outlook - Repligen shares have declined approximately 0.2% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $174.55 million, and for the current fiscal year, it is $1.69 on revenues of $701.98 million [7] - The estimate revisions trend for Repligen is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Repligen belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]