I assigned a ‘buy’ rating to Repligen ( RGEN ) in July 2024, highlighting its strong filtration and weak growth in China. Since then, the stock price has surged by more than 14%. I believe Repligen’s business will gradually recover in FY25, supported byMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth pot ...

Financial Performance - Total revenue for 2024 was $634.4 million, a 0.3% increase from $632.4 million in 2023[283]. - Product revenue increased by $2.2 million, or 0.3%, in 2024, driven by a $31.6 million increase in Filtration product revenue, offset by a $29.0 million decrease in Proteins product revenue[286]. - Total costs and operating expenses for 2024 were $669.6 million, an increase of $84.9 million, or 14.5%, compared to $584.7 million in 2023[288]. - Gross margin decreased to 43.3% in 2024 from 44.0% in 2023, primarily due to increased restructuring costs[291]. - The company recorded an income tax benefit of $1.5 million in 2024, with an effective tax rate of 5.6%, down from 37.2% in 2023[305]. Debt and Financing - The company issued $600.0 million aggregate principal amount of 1.00% Convertible Senior Notes due 2028 in December 2023[270]. - The carrying value of the 2023 Notes was $525.6 million as of December 31, 2024[272]. - The company recognized a $12.7 million loss on extinguishment of debt for the year ended December 31, 2023[271]. - Interest expense surged by $18.2 million, or 728.2%, in 2024, primarily due to new debt issuance and related costs[299]. - In 2023, cash provided by financing activities totaled $249.0 million, including $290.1 million from the issuance of the 2023 Notes[318]. Inventory and Cost Management - The company recorded $36.0 million in inventory adjustments in 2024 due to discontinuation of certain product SKUs and proactive material procurement during the pandemic[260]. - Cost of goods sold rose by $5.9 million, or 1.7%, in 2024, including $12.5 million of inventory adjustments and $6.1 million related to closed manufacturing facilities[289]. - The company has successfully implemented price increases and productivity improvements to mitigate supply chain disruptions and inflation[252]. Research and Development - Research and development expenses increased by $0.5 million, or 1.1%, in 2024, primarily due to a $1.8 million rise in employee-related costs[293]. - R&D expenses for expanding protein product offerings were $3.1 million in 2024, $3.8 million in 2023, and $2.6 million in 2022[294]. - The company plans to continue investing in its bioprocessing business and R&D activities for new products[322]. Acquisitions and Investments - The company acquired Tantti for $54.8 million in cash in 2024, with an obligation for up to $54.5 million in contingent earnout payments over three years[308]. - Investing activities consumed $86.4 million in 2024, primarily due to the acquisition of Tantti and capital expenditures of $29.9 million[315]. Cash Flow and Liquidity - Cash and cash equivalents increased to $757.4 million as of December 31, 2024, compared to $751.3 million at the end of 2023[307]. - Cash provided by operating activities was $175.4 million in 2024, reflecting a net loss of $25.5 million and non-cash charges totaling $140.0 million[313]. Foreign Currency and Exchange Rates - The company’s revenue is significantly influenced by foreign currency exchange rates due to its global presence[251]. - 37.0% of total revenues were denominated in foreign currencies during 2024, compared to 37.9% in 2023[331]. - The U.S. dollar strengthened against the Swedish krona by 9%, the Euro by 6%, and the British pound by 2% in 2024[320]. - The company uses foreign exchange forward contracts to hedge against currency exchange rate fluctuations[332]. Contingent Consideration and Fair Value - The fair value of contingent consideration obligations for the year ended December 31, 2024 had a net change of $3.2 million primarily related to the acquisition of Avitide, Inc.[262]. - Contingent consideration adjustments for 2024 resulted in a fair value increase of $3.2 million, compared to decreases of $30.6 million in 2023 and $28.7 million in 2022[297]. Stock-Based Compensation - Stock-based compensation expense for 2024 was $48.1 million, compared to $25.6 million in 2023[277]. - As of December 31, 2024, there was $56.5 million of total unrecognized compensation cost related to unvested share-based awards[278]. - SG&A expenses increased by $44.8 million, or 20.5%, in 2024 compared to 2023, primarily due to $22.4 million related to the former CEO's equity awards modification[296].

Repligen Corporation (RGEN) reported fourth-quarter 2024 adjusted earnings per share of 44 cents, which beat the Zacks Consensus Estimate of 41 cents. The company had recorded adjusted earnings of 48 cents per share in the year-ago quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Total revenues were $168 million, up 0.6% year over year on a reported basis. Excluding the impact of acquisition revenues and currency exchange, revenues rose 3% organically. The reported figure was in l ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of approximately $168 million and full year revenue of $634 million, achieving the midpoint of guidance despite a $3.5 million exchange rate headwind in the quarter [50][52] - Fourth quarter non-COVID revenue growth was up 13%, while full year 2024 revenue was flat and up 3% on a non-COVID basis [50][51] - Adjusted gross margin for Q4 was 50.7%, down 1.8 percentage points year-over-year, but higher than the implied guidance in November [56][57] Business Line Data and Key Metrics Changes - The CDMO business saw sales and orders increase significantly, with sales up more than 40% and orders up more than 11% in Q4 [87] - Equipment sales and orders were up more than 30% sequentially and more than 10% year-over-year in Q4 [30][31] - Filtration revenues were up 30% year-over-year in Q4, with orders also reaching record levels [32][34] Market Data and Key Metrics Changes - North America represented approximately 50% of total full year revenue, with a 12% revenue growth, while Asia (excluding China) also grew by 12% [52][53] - China was a $25 million headwind for the year, representing about 3% of total revenue, down from 7% in 2023 [54] - Orders from CDMOs were the highest since Q1 of 2022, excluding COVID, with a significant recovery noted in the second half of 2024 [27][41] Company Strategy and Development Direction - The company aims to accelerate and maintain above-market growth by improving customer experience and focusing on key accounts and Asia [44] - Increased investment in R&D is planned, particularly for new product launches and single-use mixers [45] - The company is also focused on acquiring one to two businesses to strengthen its position in new modalities and PAT [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bioprocessing market returning to growth in 2025, with a strong order intake and improved market conditions [9][10] - The company expects revenue growth in 2025 to be in the range of $685 million to $710 million, representing an 8% to 12% increase on a reported basis [43][71] - Management highlighted that the order intake has increased every quarter in 2024, indicating a sustainable return to growth [100][102] Other Important Information - The company successfully integrated Metenova and plans to launch new single-use mixer technologies in Q2 of 2025 [18][19] - Adjusted net income for the fourth quarter was $25 million, with a full year adjusted net income of $89 million, down about 5% from 2023 [66][68] - The company generated $178 million of cash flow from operations for the full year, 56% more than in 2023 [69] Q&A Session Summary Question: How have things evolved regarding CDMOs and capital equipment? - Management confirmed significant improvements in both CDMO and capital equipment, with sales and orders increasing substantially in Q4 [87][88] Question: Can you provide details on ATF revenue and its impact on guidance? - The filtration business generated about $373 million in 2024, with ATF being a significant contributor, and management expects continued growth from this segment [93][94] Question: How sustainable are the order trends observed? - Management noted that order intake has increased every quarter in 2024, with a strong portfolio of differentiated products supporting this growth [100][102] Question: What visibility exists for protein growth in 2025? - Management acknowledged 2024 as a reset year for protein but expressed confidence in returning to double-digit growth with new product launches planned [110][111] Question: What end market assumptions are incorporated in the fiscal '25 guidance? - Management indicated that they expect a return to historical growth patterns, with stronger performance in the second half of 2025 compared to the first half [124]

Core Insights - Repligen Corp reported a fourth-quarter adjusted EPS of 44 cents, down from 48 cents a year ago, but above the consensus estimate of 41 cents [1] - The company achieved sales of $167.55 million, slightly up from $166.6 million a year ago, aligning closely with the consensus of $167.67 million [1] Financial Performance - Total revenue in the fourth quarter grew by 13% when excluding COVID-19 impacts, despite facing a two-point currency headwind [2] - Total orders exceeded sales by 6%, driven by the Filtration and Analytics franchises [2] - The company expects adjusted EPS for 2025 to be in the range of $1.67 to $1.76, compared to the consensus of $1.73 [3] Market Outlook - Repligen anticipates 2025 sales between $685 million and $710 million, with organic growth projected at 9.5% to 13.5% and non-COVID revenue growth of 10% to 14%, compared to the consensus of $694.86 million [2] - Analysts indicate that Repligen's Q4 results and 2025 outlook confirm a strong recovery in the bioprocessing industry, with growth expected to normalize next year [3] Competitive Positioning - Compared to peers like Danaher Corporation and Avantor Inc, which project mid-to-high single-digit growth, Repligen's outlook reflects a strong product portfolio and customer positioning, leading to consistent above-market growth [4] - The company's focus solely on bioprocessing and minimal exposure to NIH-funded research and academia makes its guidance more predictable than that of competitors with broader market exposure [4] Stock Performance - Repligen's stock price increased by 8.16%, reaching $163.03 [5]

Core Viewpoint - Repligen's fourth-quarter results were negatively impacted by restructuring costs, despite exceeding earnings expectations and showing slight revenue growth [2][6]. Financial Performance - Adjusted EPS for Q4 2024 was $0.44, surpassing analysts' estimate of $0.41 but down 8.3% from $0.48 in Q4 2023 [3][6]. - Revenue reached $168 million, slightly above the expected $167 million and up 0.6% from the prior year's $167 million [2][3]. - GAAP gross margin fell significantly to 23.2% from 47.1% year-over-year, a decline of 2,390 basis points [3][6]. - Adjusted gross margin also decreased to 50.7%, down 180 basis points from 52.5% in the previous year [3]. Company Overview - Repligen specializes in developing and producing technologies for manufacturing biological drugs, including therapeutic antibodies, vaccines, and cell and gene therapies [4]. Strategic Initiatives - The company is focusing on technological advancements and strategic acquisitions to enhance manufacturing efficiencies across its four main franchises: filtration, chromatography, process analytics, and proteins [5]. - Recent acquisitions, such as Tantti Laboratory, have strengthened Repligen's product portfolio and market position [5][7]. Significant Events - The launch of AVIPure dsRNA resin, aimed at purifying mRNA-based therapeutics, is part of Repligen's innovation strategy [7]. - The company reported a GAAP operating loss of $37 million in Q4, compared to a GAAP income of $10 million in the prior year, primarily due to restructuring costs [7]. Sector Performance - The CDMO and capital equipment segments experienced notable recoveries, with revenues increasing sequentially by approximately 20% and 30% respectively [8]. Future Outlook - For 2025, Repligen anticipates revenue growth of 8% to 12%, or 10% to 14% when excluding COVID-related earnings [9]. - Management projects adjusted EBITDA margin to be in the range of 20% to 21%, an increase from 18.5% in 2024 [9]. - Adjusted EPS is expected to be between $1.67 and $1.76, up from $1.58 in 2024 [9]. Market Expansion - Investors should monitor Repligen's acquisition strategy and market penetration efforts, particularly in Asia and Europe, as these will be critical for sustaining growth [10].

Group 1 - Repligen reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and up from $0.33 per share a year ago, representing an earnings surprise of 7.32% [1] - The company posted revenues of $167.55 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.10%, compared to $155.74 million in the same quarter last year [2] - Over the last four quarters, Repligen has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Repligen shares gaining about 4.7% year-to-date, compared to the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $163.53 million, and for the current fiscal year, it is $1.71 on revenues of $695.77 million [7] - The Medical - Biomedical and Genetics industry, to which Repligen belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook [8]

Exhibit 99.1 Repligen Corporation 41 Seyon Street Building #1, Suite 100 Waltham, Massachusetts 02453 Repligen Reports Fourth Quarter and Full Year 2024 Financial Results WALTHAM, Mass., February 20, 2025 - Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its fourth quarter of 2024, covering the three- and twelve- month periods ended December 31, 2024. The company is also providing financial guidance for the full ...

Core Insights - Repligen Corporation reported a total revenue of $168 million for Q4 2024, reflecting a 1% increase compared to Q4 2023, and a full-year revenue of $634 million, which is flat compared to the previous year [5][20][23] - The company experienced a 13% revenue growth in Q4 2024 when excluding COVID-related revenue, with total orders outpacing sales by 6% [2][5] - Repligen provided financial guidance for 2025, expecting total reported revenue to be between $685 million and $710 million, representing an 8% to 12% growth [10][9] Financial Performance - Q4 2024 GAAP gross profit was $39 million, down from $78 million in Q4 2023, while adjusted gross profit was $85 million compared to $87 million in the prior year [6][4] - The company reported a GAAP net loss of $34 million for Q4 2024, compared to a loss of $16 million in Q4 2023, with adjusted net income of $25 million versus $27 million [6][21] - For the full year 2024, GAAP net loss was $26 million, compared to a profit of $36 million in 2023, while adjusted net income was $89 million, down from $93 million [6][21] Business Highlights - Orders for Contract Development and Manufacturing Organizations (CDMOs) and capital equipment increased approximately 15% and 30% sequentially, indicating a recovery in these markets [6][2] - The company completed the acquisition of Tantti Laboratory Inc, enhancing its chromatography offerings [6][2] - Repligen launched AVIPure dsRNA resin, the first affinity resin for the removal of double-stranded RNA, targeting mRNA-based therapeutics and vaccines [6][2] Margin Summary - Q4 2024 GAAP gross margin was 23.2%, significantly lower than 47.1% in Q4 2023, while adjusted gross margin was 50.7%, down from 52.5% [7] - The operating (EBIT) margin for Q4 2024 was -21.8%, compared to 5.9% in Q4 2023, while the adjusted operating margin was 14.9%, down from 17.8% [7] Cash Position - As of December 31, 2024, cash and cash equivalents stood at $757 million, slightly up from $751 million at the end of 2023 [7]

Webcast and Conference Call to Be Held Thursday, February 20, 2025, at 8:30 a.m. ETWALTHAM, Mass., Feb. 11, 2025 (GLOBE NEWSWIRE) -- Repligen Corporation (NASDAQ:RGEN) today announced that the Company will report its fourth quarter 2024 financial results on Thursday, February 20, 2025. The Company will issue a press release before the market opens and will host a conference call at 8:30 a.m. ET to discuss business updates and financial results for the three- and twelve- month reporting periods ended Decembe ...