Repligen(US:RGEN)2022-02-17 16:53Financial Data and Key Metrics Changes - The company reported record revenue of $186.5 million for Q4 2021, representing a 72% increase year-over-year, and $670.5 million for the full year, reflecting an 83% growth [32][35] - Adjusted net income for Q4 2021 was $46.9 million, a 64% increase compared to Q4 2020, and for the full year, it was $175.3 million, up 97% from 2020 [42] - Adjusted EPS for Q4 2021 increased to $0.81, a 56% rise from $0.52 in Q4 2020, while the full year adjusted EPS was $3.06, an 85% increase from $1.65 in 2020 [42] Business Line Data and Key Metrics Changes - The filtration franchise was the major growth driver, with over 100% growth in Q4 and over 130% for the full year [26] - Gene therapy revenues increased by 85% in Q4 and approximately 40% for the year, indicating strong market traction [20] - The chromatography business grew by 29% for the year, with OPUS revenues increasing by 22% [24] Market Data and Key Metrics Changes - Revenue from Asia-rest of world increased by 136%, Europe grew by 94%, and North America grew at 58% for the full year 2021 [37] - COVID-related revenues accounted for 33% of total revenue in Q4 and 28% for the full year, with expectations of $200 million to $220 million in COVID revenues for 2022 [21][45] Company Strategy and Development Direction - The company aims to build out capacity to support growth, integrate recent acquisitions, launch new products, and continue traction in cell and gene therapy [28] - The total addressable market (TAM) increased from $3.7 billion to over $8 billion, largely due to COVID impacts and strategic acquisitions [11][63] - The company is focused on sustainability initiatives, including a commitment to renewable energy and diversity and inclusion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bioprocessing market and expects to achieve revenue guidance of $800 million to $830 million for 2022, representing growth of 19% to 24% [45][70] - The order book for cell and gene therapy remains robust, with no observed slowdown, indicating a healthy pipeline [60][71] Other Important Information - The company spent approximately $71 million in capital expenditures in 2021, with 80% allocated to capacity investments [33] - Adjusted gross margin for the full year 2021 was 58.9%, a 120 basis point improvement year-over-year [38] Q&A Session Summary Question: Outlook for filtration growth - Management expects filtration growth of 25% to 35% in 2022, driven by traction in flat sheet cassettes and ATF technology [51][52] Question: Growth in cell and gene therapy - The company anticipates adding new customers at a similar pace as in 2021, with a focus on late-stage approvals to drive momentum [56][58] Question: Impact of market volatility on pipeline - Management noted that the impact is more on early-stage research, with solid order activity observed in the base business [70] Question: Inventory levels in the channel - The company acknowledged a trend of slowing inventory build, which may not significantly impact operations until the second half of the year [73] Question: Capacity expansion details - The average capacity increase across product lines is estimated to be around 4x, with significant increases in hollow fiber capacity [76][77] Question: Initial response to new resin products - The response to new AAV manufacturing resin products has been positive, with expectations for customer evaluations to lead to orders in the future [84][86]