RGEN - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and welcome to Repligen Corporation Third Quarter 2017 Earnings Conference Call. My name is John and I will be your coordinator. [Operator Instructions]. And now I now like to turn the call over to your host for today's call, Sondra Newman, Senior Director of Investor Relations for Repligen.

Sondra Newman

Thank you, and good morning. are XXXX financial guidance and year we third for for call, XXXX. of quarter reviewing today's reporting results our the the On our financial

and will and report. financial recent Tony President John Hunt Our business will CEO, highlights our provide CFO, Snodgrass, discuss

expectations we'll our the During goals this regarding business of making be call, financial statements performance forward-looking our and for company. the

actual such risks and may cause to statements differ. uncertainties to subject events are reminder, results a As or that

annual not other current information, itself report to factors report the risk obligate as result which we our the which views, as discussed obsolete concerning make become comments Form update of information forward-looking current management's statements on future as by in otherwise. new or except on we Additional law. a does XX-K, or filed filings with reflect X-K, Form Today's today, events required commit SEC. and that could company The

as include which gross at per unless indicated, basis guidance this EBITDA only. Repligen's During on non-GAAP to margin, income, press website figures financial operating results GAAP be expense, are net Reconciliations or issued providing operating will SG&A and EBITDA. measures as and earnings margin, share, is we of currency, Adjusted gross the that posted we sec.gov. growth revenue and in morning, to this otherwise adjusted on adjusted release the following, well included will adjusted call, presented an are constant the that profit income financial and

enables performance evaluate the peers company business not call and turn these Tony use believes for against Repligen's to financial an measures, With I'll While non-GAAP investors the investment of update. alternative the current benchmark of should that, performance measures results as the to to viewed to over historical adjusted Hunt and opportunity. these measures better be that GAAP

Tony Hunt

and good morning, Thank you, Sondra, everyone.

started for have here exciting the transaction out been largest finish we by months phase the company XXXX, X acquisition the last We time out us really position As in Spectrum. as for closing next the third date, of an the we growth. quarter to the final quarter our of

As our ATF our filtration by Since, our out technology, accelerating XX grows product TFF branching significantly business we first, filtration, single-use this product with you line large-scale perfusion, filtration fiber market hollow to device, rapidly to adding specifically line. consistent single-use in know, launched position in offering. upstream the ATF deal our a solidify products

our than the most quarter organic growth an Repligen in chromatography Finally, businesses. XX% XX% delivered and filtration excellent and with growth team and greater importantly, total

in of after our XXXX. goal since continued business a great Our represents success lies I direct-to-customer back ability our approximately acquisition, Spectrum in X/X has This been which, forward. to Repligen moving build May my joined the business

where businesses including in with are industry, we supplier, flexible core OEM manufacturing. a single-use beyond a diversified chromatography have of and and are growth address the most We bioprocessing moved industry's and leading to our top we where factors in the ligands filtration player up innovative products some product now in

Spectrum with close we effort closing QX progressed strong and and diligence rolling of first and quarter customers the be can products well, refocusing for following both of was to to plans first the our months the XXXX. XXXX. Spectrum integration completing The in are a growth growth for quarter half quarter. back ownership their attributed out integration and performance and management's activity of of to Spectrum over processes. has X in performance to So the commercial of covers full team in to observed the sales the moving at This QX. in Repligen observed X% It in XX% great compares

stood We still. not have

our for see started to with cross-selling, have TFF the nice emerging of opportunities teams system. impact Our

TFF fiber revenue systems We at expect hollow million projection. the $XX high to $XX of and led finish initial to the the million our year modules, Spectrum end business, by

few throughout quarters, industry drug at all Rico and hurricane of damage Florida the definitely which large has heard impact the failures you've inventory the pharmas, As in working due experienced bioprocessing the changing Puerto strategies last through system. to some and a the late-stage are slowdown

We businesses direct chromatography strong for predicted business our has Repligen, light in funnel for approximately our a our end based of For QX. on we full of growth first quarter franchises not experienced observed slowdown. for XX% order business, expect here in through the a quarter different. good and and organic X. And very had the filtration been a Proteins XXXX have The somewhat year we be these ligands loads half will and

ligands As the their has A customer in demands. as impacted demand been opposed managing customer any QX, real through largest our we goods slowdown Protein finished to for external inventory by move

in Our again as remain up is expectation this pick that strong. for XXXX will longer-term forecasts ligands

and with quarter Our the the X well performed north XX% OPUS chromatography for growth business, of months. by quarter, led in first through the OPUS,

continue with for from the Europe. the accounts, to encouraged quarter these accounts. XX% pharma adoption, in traction new are by from the We of and CMO really came we benefit especially in And revenue

development business OPUS approximately more solution. adopt pharma had quarter, very companies PD year-on-year our Our also up a XX% strong as process

single-use business robust and single-use XCell also to now new seeing momentum, system. we in our are particular, products, our demand filtration continues ATFXX Our for market gain

consumables order filtration, share year the we for continued our we as performance Overall, QX. by single-use another performing, the year market strong significant healthy more ATF even to have revenues that Also, price XX% business in this the technology. expect strategy when single-use a of now quarter, now of single-use with Repligen. and will ease-of-use expect a full shine competitive, within approximately that will drive in TangenX given came products will take would here be We the the ATF, the of benefit in from For XX% better for manufactured XXXX This further sales new adoption accounts, our ATF Filtration load for contribute we becomes feature product. of more validating XXXX.

a half having demo in deep way the second year with are requests reps funnel. bigger up this impact a and of Our

our end projections are TangenX's complete business the able about will or of by solution we We be a the and the combining system. Spectrum's fiber to will excited we this end as of revenue up And clients offer next end year. success year TFF at high for above hollow by

the drivers quarter and growth systems of portfolio, Within Spectrum the TFF in were modules. the

strong is in addresses perfusion believe for Our next filtration hollow will we Repligen latest product and generating depth and product offering the fed-batch processing. in market, fiber the of a opportunities as a be great this it over product, years X interest

and important and be space. we at as Our launch for and years R&D manufacturing will continuous team chromatography XXXX, continues new to make us products progress aimed filtration XXXX single-use good the

for on goals, the through core year our our key our in our added and So will overall pipeline. -- in XXXX our to we we will forward XX-plus impact you presence and our relationships benefit we've acquisition, updating beginning executed we've products expanded R&D customers, we've direct for the really to well key look a strong to the a company, from completed XXXX Asia. of innovation be also have finish. really engine sales February I of move with we team, including acquisitions, our is strengthened balance cash on XXXX future sheet

Jon hand I'll through now to financials to quarter. over walk you it the Now the for

Jon Snodgres

as for year. Today, XXXX our financial for guidance our well the morning, third And good are Tony. you, reporting quarter of as we results financial updating everyone. Thank the

As XXXX discussed be non-GAAP. measures a will mentioned, unless otherwise reminder, all adjusted financial

experienced a most approximately by U.S. as We to driven to krona tailwind $XX.X moving significantly third our quarter report currency XX% foreign million, quarter increase compared an X.X% versus Now XXXX. strength due We sales Proteins GAAP reported revenue dollar. third our of of at Swedish results. currency XX% in of the in financial in business, constant of the XXXX the in fluctuation, to and

our in revenue As Tony third our large-scale continue of Spectrum our along lines business. expand gaining traction we XXXX quarter performance driven TangenX mentioned, process ATF business, was chromatography strong base from a where where to strong our and are product development customer our our performance in single-use we acquired OPUS newly and growth business, and with filtration our OPUS in by with products,

$X.X third third increase XX.X% the margin quarter was gross of Our the forecast impacts and and versus our quarter. XX% fourth line Gross we adjusted growth full were our profit quarter expect quarter based to of the by driven stronger was and prior in XXXX of with of revenues margins XX.X%, margin over for XX% $XX.X a lower XXXX, to growth importantly, in our guidance third margins or Protein for volume adjusted Spectrum were of XXXX year the A quarter period. and in million with product ratios mix. comparable range gross quarter million, an the ligands on and gross guidance and factor be of Most overall within the our our XX.X% full and consistent for factors

a to year Approximately included expenses to to increase or R&D remaining quarter quarter. in our research of expenses XXXX third quarter and XX% expect the XX% were Adjusted from quarter basis, moving compared figures. ongoing we expenses and of compared the spending is XX%. combined an note related of quarter not $X third million our XX% commercial an related third Now Spectrum year-over-year million, is in adjusted million of million TangenX the was were and intangible $X.X the we and in investments the our SG&A to expenses. for On SG&A increase roll programs. excludes organization XXXX to Spectrum-development is acquisition Approximately related to in GAAP quarter $X.X and costs increase $X.X in Please the development for a increase XXXX in infrastructure. in million acquisitions, operating that million as of fourth amortization the XXXX prior of which our $X.X general of for reflecting XXXX, $X.X the comparable

now Moving and adjusted EPS. earnings to

quarter margin third operating adjusted For XX%. XXXX, the our was

in Our adjusted per and global increase partially share, current XXXX. for ongoing XXXX. both of support million, our million of $X.X future growth. or by the of Adjusted for the for XX% quarter offset third was EPS an $X.XX from margin million companies from by income acquisition-related adjusted quarter commercial $X.X period XX% million growth, $X.X share investments to of per in costs $X.X and to same a sales third quarter And the was The team compared third operating to increase XXXX. increase organic pull-through XXXX the and of diluted the grew fully $X.XX XXXX year-over-year driven was acquired quarter third from to net compared for income

to company increase continues XX% becoming tax delivering in allowance operating to for improved rate a $X.X quarter, also benefit reversals XXXX. the driven in to income related U.S. position in $X.X the strong a from reduction entity in tax valuation has EBITDA year-to-date addition XXXX million third an our was the for third In which quarter our period profitable, XXXX the global from same rate. of million, Adjusted and

$XXX.X million Our are cash, financing which our quarter. in GAAP of equity closed XX, marketable net the both of recent increase received cash from third of and the of acquisition transactions and as these a an cash the were million equivalents second end Spectrum, September $XXX inclusive were related recent XXXX, the outlay from to million at $XX.X of $XXX is metrics, the of million This securities, cash quarter.

to XXXX guidance. full moving Now year

through period move XXXX, now the the our acquisition Spectrum XXXX incorporates we August year of full XX, impacts our consider August on guidance please the into As financial section, X, on financial closed we Spectrum X XXXX. guidance that that of for December and of

Our of the today's EPS reconciliation and are GAAP tables financial press income in guidance earnings included non-GAAP in XXXX reconciliations release. for to net

tightening XX.X% beyond constant year As of a by XXXX acquisitions basis. potential impacted may are to XXXX to will $XXX full financial guidance XX% previously also guidance rates non-GAAP. new impact revenue X.X% on keep to Please guidance XXXX growth beyond adjusted fluctuations current all sales mind discussed in and the projection the not as to we our our in include reported, in XX.X% $XXX of tailwind exchange of on Spectrum. foreign million be does million, and range currency that be mentioned, our reflecting XX% Today,

margin our XX.X% for adjusted the of gross inclusive year, business. guidance XX.X% are the of acquired maintaining Spectrum We to

to XX% revenue. million operating maintaining are well $XX as our than guidance million adjusted our operating of greater as We XXXX adjusted guidance of income margin of $XX

cash to guide We debt to continue to related convertible our interest year financing. $X.X of million full

to million our We income an expense to to of tax a to -- $X of $X million guidance $X.X improvement our million adjusted are XXXX related expectation to improving guidance million, internal $X.X valuation from low acquisition. range of as product Sweden line an the the income related U.S. Spectrum business, by reversals transfer taxes from on triggered U.S. effects to from well our our allowance as

to our and our of a adjusted million adjusted guidance the income to per year $X.XX EPS tightening a range fully net for million $XX.X guidance to $XX.X share. range $X.XX are to We increasing of diluted

We expenses expected expected for expenses and the in $X to of are $X.X range also our depreciation million. to $X.X XXXX, guidance in amortization a EBITDA $XX range with million the approximately to adjusted full intangible of for million $XX to be holding million million year be

to expect and and now XXXX to in million call be We pleased to to be the related net over by factory the X the EPS the support to from expects expenditures ownership months are spend the capital range a adjusted operator and adjusted $XXX.X offset we $X securities And marketable $XXX total up share continue $X.X EPS cash, in I on income that at XXXX. spectrum fully expansion. million our of equity of for million XXXX expected year-end acquisition in both Spectrum of for will impact XXXX. equivalents dilution our back $XXX million, to questions. to turn to and year-end company now of maintenance cash be financing million The during continued to

Operator

[Operator our Brandon question from is Couillard Jefferies. first Instructions]. And from

Brandon Couillard

around been me? this you guys, Tony, you've industry can -- hear

Tony Hunt

can Yes, we hear you.

Brandon Couillard

the able growth been level? many peers perspective we'd your the of cycles. quarters. a on been trends direct what's last in view environment. high of through see still over nice But your from more bioprocessing are like time. pockets of sort At mixed Would get sort this get love micro been on around your sort of we macro you a Obviously, of business sounds think at X to of a has several level, some larger at a industry going high level. you've to through love seeing where Tony, current It's to your long

Tony Hunt

Sure.

growth. look has bioprocessing been think at just I the last obviously, when industry, you tremendous the in years X

through of think year X, any do in year years. up XX% have I space most think a -- you into that probably, X% especially grown this Phase work bigger when players, of most the for have like companies. of companies XX%, happened the to when if their -- that a you failures the see would've some been, system X last in for end anywhere from the our towards have tend of of year, they the last the to III get they forecast XXXX, to the they I in -- themselves given over lot would obviously,

commodities products. on from portfolio think, I differentiated and think going they difference our stick think other team a the a in our to that is within inventory team, very there's differentiated to sales products, of maybe a some And players of what back this some -- to are I biopharm of But broader And trying the the we're between difference organizations, you lot stayed the we industry products have is clearly experienced about just have span portfolio, much industry. think maybe, tie sales of the our experiencing if to a our of true on no products. large Repligen is strategy management products whereas focusing very have I with everything in peers our peers portfolio. handful that to the commodity really

put all your all to products. hard So just it's attention into

I our Repligen, strategy. comes for think to So just it down

the I have we're we're on seeing team traction We we've in our why very stayed great the differentiated, and continuous market. focused that's very and is focused that single-use products, they're think sales and seeing

Brandon Couillard

by outperformance say goes? a -- should A far in here Protein this Jon, each some far as ligands direct perhaps the for contribution the side you're of somewhat it pocket on as as fair that anything maybe offset weakness portfolio maybe so thinking in to how that is as offset of other kind guidance has XXXX Spectrum point? And changed at about And

Jon Snodgres

are much a on some there. spot we of some an so a businesses Proteins the saw quarter, the definitely in lumpy as faster non-Protein that you pace growing of as the and you're impact mentioned, no, businesses Yes, had bit at

a we the to and Repligen answer it that we be for good some all level down business line manufacturing from our level forward maintain in margins so we full mentioned, quarter inventory I then is -- expect to excited the is forecast, year. in when in burn And As the to the contributing here final we question, start your at surprises margins third would, which can a of realizing a sales and a filter to no Spectrum fourth legacy and we the as the start thing, go we're quarter are overall business little with And the there. way thought through beyond. bit the at going

Operator

Drew Inc. Our next is question from Stephens Jones from

Drew Jones

the Protein rest you in there business? segment, you if the customer, tell at the back Looking can largest if out of us was that growth

Tony Hunt

Protein Yes, sort at when segment I we can -- segment, customer, the out of say by second of it half of the can don't so half look year. the sense first year, a But Protein the Drew. we that you break so give of I

and So in half lighter we their mind, of really strong. burn the actually wasn't on business in our an inventory but largest what's of QX the the customer management associated with it's, has down And policy seeing that our QX. inventory clearly Kind in in going ligands our we're philosophy terms really anticipated year at of predicted, had first changed. was

half a growth really factors, in half. make comp had which the business, really up of the tough terms first of growth other factors In our Proteins

it demand; a comp. have would more was because a year-on-year, difficult down really in but change massive it been was wasn't they So there just

some growth half the able customers new been factor year, into of we've the our second to add For portfolio.

factors XXXX second HX outperform year that half HX in the growth see we'll versus the of will so And XXXX.

Drew Jones

Tony, give more revenue touched for Is contribution trialing? then, something some much meaningful? and customers new contribution this Or and you chromatography Okay, sort of the on of nature sight filtration. us Can a guys a in you longer to this? from on have you feel better of and line do

Tony Hunt

same of for I now, the whether the Spectrum bit sort the would see with have place the it's no of in and commercial half that say, for we've that more remember, OPUS first to more made salespeople PD TangenX go strategy of added the is salespeople we the within able is our only a statement portfolio we salespeople that's provide we additional if XXXX, bit the you or now as in in or And for if add the team that salespeople. more a and the year. needed impact here year, when you working And to XXXX. add hunting said needed in back And beginning more in in of it's we each started bandwidth second half the The the to well. territories to of to split there different push But for key new today, year, accounts little little been within of a terms obviously, accounts. the we not we've ATF at team. to the the and really OPUS we rep do bringing

And accounts. single-use, the by So really would new we're say, that encouraged on were ATF newer XX% customers customers. encouraged the I

we portfolio the the barriers the XX, it benefit entry. perform we're year really only barriers that this single-use think of really of really portfolio I get So will trial, single-used that our quarters for the the year on so two single-use lower well. the next for validates would lower thinking -- just And

Operator

Murphy is Blair. Our from next William from Amanda question

Amanda Murphy

side I filtration. then on Protein couple just and a had one the on more

be what curious, of then And one, And about about Purolite. how conversation, then there first, could you're might drawdown, you of for there there. inventory their bit announced term, So more was that been something has they going drawing I you kind term? longer how long talk getting the Maybe, a have meaningful broadly, terms in of the there, the just over in next how Obviously, long comfort terms actually, another any year about if with could plan? Proteins. you also you've just be timing so I'm I to ask GE down?

Tony Hunt

Okay, how look question, obviously, XXXX in GE and long-term from forecasts forecast, inventory don't know when are but going for the long-term is ligands have customers terms the long XXXX, of drawdown all -- our to side you on place healthy. we we at take first the the

XXXX more this when to a shorter-term that bit a be is see demand, that's we we'll when into, we more my to event QX. prolonged. first get start in December a get obviously, have at expectation So But of fact, into and timeframe, QX is in going insight something we'll look and little

on question the Purolite. of terms In

few now. think terms Protein around I entrant. is used a years A agarose it ability will in been It's their in manufacture they're resins, for manufacturing not course, be clearly our be A Protein new also of for resin, Purolite business, but in investing to will But for which, the ion exchangers. resin market, of a just

it's GE I us, having partners, in position whether be we to for A or ligands. Purolite, it's that Protein it healthy Repligen a when to think comes Millipore good or for believe

and years, on does partner that current And their option ligands Purolite so over of chosen in they've the us for how agreement exactly But next that an years for it. plus, the out we'll more extended three happy we're market. obviously, the see top as they've X X

Amanda Murphy

chromatography. it. then, of both for you've I and to market that, response from guess, you example, -- my was have any the one on chromatography going there. lots one last anything, of competitors own, given are the my Obviously, Got that filtration are obviously, And in guess on filtration I is growth I curious, sort seen in a -- yet just that's be their side, think same competitors to Anything potential what other there's lot resins have side. of just that of on market? And seen or you GE then maybe terms about starting pack doing anyone than changed? question

Tony Hunt

Sure.

out who at and line columns. leader. their the GE an think of did diameter is, strategy, And But equivalent column. stayed year, which come is resins GE beginning I chromatography prepacked -- side, don't resin. folks' with their who to a Amanda, pack true columns, product XX-centimeter both the Millipore, sell the have They the the clearly market of prepacked in have other On they OPUS packed

really when back made we've think helped Drew think, And us. I building think strides now you the back with And story going commercial I terms XXXX, into I -- out to filtrationis whole the goes a really XX-strong the significant of to of hybrid which buildout the sales specialists look a chromatography team, to the bag in with year. our and our to we going team market OPUS, all we're really in commercial some at will next about be to comments of industry. organization, I in going think measured moving to use carry will going and my strategy to reps

gotten our that expect really leadership reviews going product columns. I our great has the continue think we single-use from to With to we're to again, ATF, So market customers. maintain position prepacked respect in

share a the people the So in trying take a market-leadership This a somebody. and to like into small We're Again, position. isn't love move market ease leader. use. actually Repligen market we're from of company

And So impact the overall combination do new through XXXX. And the road. our really will product we for that's potentially stay maintain from haven't continue of the Spectrum also us, we how I that Spectrum that, we seen think of on portfolio. yet acquisitions filtration TangenX think to our But products. the and focused leadership something legacy to really and combination finally, of development, down we will I think, benefit on filtration I XXXX in moving think benefit business, into Repligen that our us need

on future for line. filtration, product us the think bright is I chromatography So the

Operator

is question Janney from Paul Our Knight Montgomery. next from

Paul Knight

you're you force I the is, it's ground their sales in a wrap into these own, as a Spectrum Asia. things position feel in Or have distribution think it's some But there that I more of of sometimes experience net kind integration like, people. the your kind additive here, bigger? like neutral risks growth? question had that were on people of you in you up a of help Because your they do these got are are on the as to net to Tony, organic integrating toolkit's layup think,

Tony Hunt

place sales Yes, the And from clearly for network across that direct where more to years work. deal. we're is distributor how we next Spectrum really so committed in see network the the we comes plus make the couple reps of Asia; the have

of to of playing portfolio a see in great will have us. When of who have that various of XX% into years really to they've we the believe management our Asia. X we drive role, the get And the parts revenue our of few comes whole plus people the right. and that now adoption I think for in it synergy guys portfolio great We job and what today, goal in ability from sales you're done further Asia, happens Spectrum a XXXX. that that products some But our whole really next has distributors more XX-plus this the deal come right is are from

Paul Knight

of if its selling Purolite, as reaches obviously, well. assume capacity? their they of the have, it issue announced And capacity bit of regarding they've supply up a with Purolite goal -- that stays, GE capacity. then expansion And a for let's signed Is its quite

Tony Hunt

situation they Purolite's Yes, do lots the I be and players would have think same they a it's the say capability the that And a got don't exact to A industry Protein thing. I'm facility to what insight and ligands for that Protein really in plans Repligen. they and But or in ligands healthy capacity procuring have would I Millipore, market. Wales. that the they could capacity have A the clearly of an even successful they They've capacity sure, resins building how of from GE all Repligen last biggest are within facility. or think to over have have might large I to see they that in expansion we're the last X talking long

Paul Knight

Or last is -- characterize the Erbitux, is industry, it the How destocking within sector it big situation? destocking would is Avastin, in it the therapeutics? And biosimilars, this you Yes. is that market? regarding question that in of X

Tony Hunt

side, as Sartorius we're pharma or Pall GE it's the the big the players, or of not same MilliporeSigma. Thermo or some whether On or

There's selling So into products the know, the some reason from main really those But don't clearly, my pressure of in don't for be some I their space. I in no coming molecules. Paul. inventories. that biosimilar doubt there know if the originator that's they're change has mind to

I destocking for there's the that a the honestly, going clearly, But players question, think that's industry. in big on. said, better

have, can this I've I and been year said, sort rate. exact in lasted of, phenomenon in back growth XXXX. industry it moved I happened tell think then same Brandon you, I back and into, the It normal a long I a and time XXXX, saw

expectation bullish my is long-term having bioprocessing. don't We're a our industry. current peers we see events said. So as what We're bullish the XXXX And very in have the about about industry. to hangover this similar on

Operator

is Matt from question next from Craig-Hallum Capital. Hewitt Our

Unidentified Analyst

This Charlie for is on Matt.

may First, -- the Repligen? the had for get trying chance during upside have sense you I'm guys. weather quantify of a weather you impact have the to to much prevented a QX how for just

Tony Hunt

no Yes, for impact it us. had really

Unidentified Analyst

down lead CMOs that second, the in to And new then I Okay. line. through sales said success biopharm start the past was then that products, to there and will wondering, you you've

do you With and direct, the future? brand more moving force that dynamic the the changing Repligen sales growing in see

Tony Hunt

industry, are and I X than are our of do had companies, companies a XX-strong year, No, the individual strategy. companies. a expect sales But to team, continue going XXXX. with what -- into over there's instead of the CMOs industry, number to of CMOs those in biotech, into the do. CMOs. value a we we're sales -- pharma have going a part we're and some think clearly, I right we've make more Obviously, exactly biopharm have big with And we've X.X that's force, there when the we have We force years, now that we there's said, beginning get what inroads to biotech partnership we limited the a sales XX-strong last XX-, to

So I'm it. looking forward to

Operator

And Analysis. our is First from Steve question Instructions]. next [Operator Shwartz from

Steven Schwartz

buying up -- restocking, sounds A, So, near-future with if you Tony, to in be quarters to will? like it don't make expect respect future you ligand

Tony Hunt

Correct.

Steven Schwartz

you've time, had just you. Okay. respect all what to And efficiencies in with since capacity that business that and would some area, your in you've have I for utilization worked expect

pretty utilized, supply? you're terms right, of fully in So much

Tony Hunt

No, I it that frame wouldn't way.

that think X we the our honestly, our X, And have capacity we within consistently, years. A operations. optimize to plenty We've make I for yes, of last manufacturing still continue to done -- ligand. Protein

Steven Schwartz

products question, of past Okay, that bit a little so, the quarter's or that to ago, next for good you've didn't difficult acquired way within a there fact year know. exist the sales that a a acquisitions the but to you've then done lines. number here quantify controlling year from this is given And product

of year So in And what what quarter third be much -- are speaking what then from would you that how new a -- year didn't ago? 'XX, now? arbitrarily that exist just products from new think number a

Tony Hunt

Yes, think, been and alone this the just is that organic I for months X we have quarter XX%. our growth carried on

TangenX last the businesses we've the that XX includes acquired that takes in and any includes out So it Spectrum. actually so months, that of

that what So done this first idea we've an months year. you gives of through of X the

company And that we from We've give XXXX, high now, to for long-term the of think said do that February when the get an expect said guidance at on for be able grow you to early in back Spectrum obviously, little QX update to growth we'll we that. for a guys I the us, But of a year end it's XX% can XXXX. that to the In XX%. that thinking always be is we've in terms about range.

Steven Schwartz

to Well, currently? and from is to it's that's new really so the your on commercialization How what share new is -- growth products, contribution the just Sure. respect a product question now? developments, will more sales? so from my coming But a is what contributing of it focused sales year say, with Tony, be, rate. that And

Tony Hunt

X bioprocessing industry, new very growth you're launch look product market you XX metrics strong you'll year, most find have when Right. to exact years here's products look have have the challenging at I way have that that a internal can It's and for we lifetime and very what for you XX goes launch. first still the out great it say the because a will getting company that you the it, percentages that in, in but years you, years, in -- in, products and bring XX, a impact we don't will I some that at.

in that's that so And next I percentages be have the in have this expansion we're -- percentages, it we've a the getting of haven't come argue think the not and is can we smaller last is products impact it will in to good when look X able when portfolio. number. on I XX-centimeter products, contribution that's OPUS Steve. OPUS to of products, whole But launched at family. column don't technology. look call, some the other give we'll So any from idea ATF of within you, there's beginning obviously total then. at Our lead I X you years out, to been are new when percent I us like XX- right? come the on but seen you impact, from we are really year than It'll probably that to more literally for that But at new the you the for relatively and contribution, helped that to an columns new you a we've diameter what a But which year we mainly more related be rapid something still adoption -- the industry, Obviously, new general, maybe we've given then the at the are figure XX% would phase ATF the growth you're of don't and in, in side. products. the And of that, happy time new top right? drive earnings really of has

Steven Schwartz

I more the certainly, that you -- when last okay. not bridge for But that on talked is was easy Or SG&A investments, Jon, expenses, about it question the us $X was industries, stay is million, see it a years. and will as you onetime other like Jon. present broke no, my adoption with then Okay. could your in it the to quarter-to-quarter? down It's into number that number expense? a to that it buckets, you like And out commercial so, is point being drawing market curve with related the XX% over

Jon Snodgres

go add think will QX. it as into But in year. an we exact commercial we've don't continue representatives to No, be number I consistently the throughout

as all So for get that well we'll some Spectrum It's And those opportunities there growth. sales element making be to of the in will investments traction able continuing team maybe where the integration as open looking the obviously, we well, be about going into with the through additional we and, in go as will future. markets forward. to areas

Steven Schwartz

that so quarters the the share then But Okay, for definitely okay, stays, of that. some we next worry XX%, we just -- of rounding, that's, that's well, have about the and XX% understood. couple XX% remaining won't

Operator

We And this have turn at would marks. Tony closing no now the further to like call over time. questions I for Hunt to

Tony Hunt

end guys attending the I'd just And see you as like of Thank with and in we the everyone touch back year. to forward thank everybody at to off today for look getting finish you. February.

Operator

This may gentlemen. now and concludes today's disconnect. and you ladies participating, you, for conference. Thank Thank you

Repligen (RGEN) 11 Nov 172017 Q3 Earnings call transcript