Repligen(US:RGEN)2025-04-29 17:53Financial Data and Key Metrics Changes - The company reported first quarter revenue of $169 million, exceeding expectations despite a $2 million foreign exchange headwind, representing a 10% increase year-on-year [26][27] - Organic revenue growth was 11%, and organic non-COVID revenue growth was 14%, with acquisitions contributing approximately 1% to reported growth [28][34] - Adjusted net income was $22 million, up 29% from the previous year, with adjusted fully diluted earnings per share increasing to $0.39 from $0.30 [31][32] Business Line Data and Key Metrics Changes - Organic revenue growth in Q1 was driven by proteins, chromatography, and analytics, with proteins showing the highest growth [11][22] - Consumables revenue grew over 20% year-on-year, while capital equipment revenues declined as expected [15][20] - Chromatography orders increased by over 50%, marking the highest quarterly order intake in three years [22] Market Data and Key Metrics Changes - North America represented 50% of total revenue, Europe 35%, and Asia Pacific 15%, with North America and Europe both up 13% [28] - China accounted for only 2% of total revenue, continuing to decline, while other regions showed strong growth [17][29] Company Strategy and Development Direction - The company is focused on executing its strategic plan for 2025, including the acquisition of the nine zero eight devices bioprocessing portfolio and launching new products [10][18] - The management emphasized the importance of a diversified customer base, with no single customer representing more than 6% of total revenue [12][13] - The company aims to leverage its global manufacturing network to mitigate tariff impacts and maintain growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainties but expressed confidence in the underlying trends and opportunities within the business [6][10] - The company expects revenue growth to accelerate throughout the year, supported by a strong backlog and order trends [15][24] - Management remains optimistic about the mid to long-term outlook for new modalities, despite short-term challenges [58][59] Other Important Information - The company made investments in finance and quality to enhance visibility and customer experience [19][20] - Adjusted gross profit was $91 million, resulting in a 53.7% adjusted gross margin, up nearly 450 basis points year-on-year [29][30] Q&A Session Summary Question: Impact of tariffs on CDMO order trends - Management noted no acceleration in orders due to tariffs, with strong order intake growth across all customer segments, particularly from CDMOs [46][47] Question: Revenue exposure to tariffs - Management indicated that potential revenue exposure to tariffs is low, with minimal impact on EPS, and emphasized the ability to pass through costs via surcharges [49][50] Question: Outlook for new modalities - Management remains optimistic about new modalities, with sales and orders showing growth, and no significant disruptions reported from customers regarding clinical trials [58][59] Question: Changes in clinical versus commercial mix - The company reported a stable mix of 65% clinical to 35% commercial, with expectations of a gradual shift towards more commercial business in the coming years [64][66] Question: FDA guidance on animal testing - Management has not observed any significant customer concerns regarding FDA guidance on phasing out animal testing, and clinical trial starts have been increasing [96][97] Question: Manufacturing flexibility in response to tariffs - The company has dual manufacturing sites and is exploring further opportunities to shift manufacturing as needed to mitigate tariff impacts [97][98]