Repligen Reports Second Quarter 2024 Financial Results

Core Insights - Repligen Corporation reported second quarter revenue of $154 million, a decrease of 3% compared to $159 million in the prior year, with first half revenue totaling $305 million, aligning with expectations [1][5][13] - The company announced a definitive agreement to acquire Tantti Laboratory Inc., enhancing its Proteins and Chromatography segments [3] - The transition of CEO Tony J. Hunt to Executive Chair and the appointment of Olivier Loeillot as the new CEO will take effect on September 1, 2024 [5] Financial Performance - Cash, cash equivalents, and short-term investments increased to $809 million as of June 30, 2024, up from $751 million at the end of 2023 [4] - GAAP income from operations was $1 million, down from $19 million, while adjusted income from operations was $16 million compared to $29 million in the prior year [8][34] - GAAP net income decreased to $3 million from $20 million, with adjusted net income at $19 million compared to $30 million [26][36] Margins and Guidance - Adjusted gross margin for Q2 2024 was 49.6%, slightly down from 50.2% in Q2 2023, while operating margin dropped to 10.1% from 18.5% [10][27] - The company narrowed its revenue guidance for fiscal year 2024 to a range of $620 million to $635 million, reflecting a year-over-year decline of 3% to 1% [18] - Adjusted earnings per share guidance remains unchanged at $1.42 to $1.49 for the full year [18] Business Highlights - The company experienced a 5% year-over-year increase in sales for new modalities, with a book-to-bill ratio greater than 1.1 [15] - New product launches, including the DurA Cycle affinity resin, are expected to strengthen the Proteins business [6] - Continued strength in pharmaceutical demand and a resurgence in CDMO activity were noted as positive indicators for future growth [5]