RGEN - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen, and welcome to Repligen Corporation's Third Quarter 2019 Earnings Conference Call. My name is Francesca, and I will be your coordinator. All participants will be in a listen-only mode. [Operator Instructions] This event is being recorded. Please note that there will be a question-and-answer session following the Company's formal remarks. all a wished at limit accommodate there ask a to be will of order individuals to who questions, time. In two questions

to call, now host Repligen. of would like turn for call I to Investor Relations for Newman, Sondra over today's Global Head the your

Sondra Newman

update call. business first you, Thank and providing highlights CFO, guidance. CEO, guidance. and third quarter our and our cover for months year morning cover of the we'll financial you for Snodgres, everyone. Jon cover Repligen's our Great. we'll Thank financial nine President XXXX, Hunt, Good results will Tony our joining business Francesca. full Today, to results and fiscal then updates; and will

those performance differ. regarding the may business expectations reminder, for the uncertainties risks or and of results our a to forward-looking we the make including As goals financial are that actual events that and statements subject Company, cause to during call, this

included information on is Additional today, annual the make are filings we X-K, and risk XX-K, with report filing other report that Form concerning on SEC. which we Form factors in the our current

The forward-looking Today's does commit by which our current otherwise. as oblige change result not law. new statements, update except reflect information, as events itself or could to of or future comments a views, Company required

posted are sec.gov. is During measures which the in included we providing GAAP results non-GAAP this we release morning, to this press website are call, non-GAAP our and guidance. financial and issued of that to Reconciliations on

to viewed and EBITDA. against measures enable These performance better results historical but EBITDA as investors R&D operating the intended adjusted are as and be peers. tax performance income as revenue and per margin; currency; and profit income financial well figures in gross SG&A expense; benchmark to current growth the to today's GAAP income including at expenses, earnings non-GAAP alternative Repligen's report constant margin; net measures share; not following; and The should include operating adjusted operating of gross and

Now, call Hunt. to over the turn Tony I'll

Tony Hunt

call. three Thank to driven proteins, main and a monoclonal and our market positive strong for everyone, and very earnings continues XXXX and good QX Repligen our gene vaccine you, be chromatography Sondra, therapy for strength demand morning, franchises in antibody by the and filtration in welcome customers. to year

this guidance the more in greater Highlighting overall we businesses our quarter, C months to including $XXX direct an finish well revenue XX% to we grew the full to XX% for organically positioned strength, seven remain are the full-year than of raising excellent growth to This Today, year. our and than reflects XX% year. ownership growth organic million and $XXX XX%, million. of Technologies for

R&D QX development key long-term Technologies, manufacturing about through for moving product integrating SAP lines, our completing implementation C the of funnel and and our on finally, all executing into and filtration chromatography was X plans capacity Phase the marketplace. Strategically, programs

respect a new use North direct countries. With and given Japan C commercial distributors of Korea of these direct combination and in franchise majority India sales distributors done the these to and Tech work our analytics will stronger excellent quarter in hired Europe, China, presence in key In we and process presence giving the here a C be will team four, have onboarded Technologies, we who by a in America. current the

partial track million for million In on to year. target to the $XX hit Technologies million revenue is $XX QX, C approximately $X delivered our and in of

the excited with in-line the strength portfolio, the steady in the are who manufacturing protein we concentration interest potential right technology, from floor. are along of by customers seeing in measurements implement to Within SoloVPE, on product FlowVPE sales growing

focus capacity we on For our filtration and chromatography products, expansion.

to space line within production Marlborough, move facility. our the on for our executing from are Marlborough ATF ATF Waltham single-use increased with We

four, first into adding phase on right to Waltham. are in the quarter complete four OPUS suites here We track of build-out

of went finally, for Phase the will online August, during the our which SAP we second and live of of And room expect in sites, Asia and to sites increase half Dominguez, clean additional overall In track Europe West we're Phase for on products. and Coast implementation X Rancho with next of the to come select just and and we East for X modules XXXX complete Spectrum half second ProConnex Coast in commenced we build-out year. space capacity

technology, very excited launch at launch reaction in many years. process about processes trials we're scalable With hit four and first of quarter develop innovation development TFDF to harvest the positive particular, the We customer annual in where in see the scalable look TFDF new this in manufacturing the BPI clarification on received Finally, our market we're as to in products, executing currently technology in real a in Boston. system the customers our purification, primary focus clinical the on technical facilities as to we XXXX. CHO-cell their show expect

early orders for will quarter systems, and production-scale our we parallel, year. taken next in adopters already which the delivered have of In TFDF four be from QX

right more capabilities ATF as implement ATF they on this and launch quarter, into their flexibility Finally, later intensification track giving culture multiplexing controller is to next-generation workflows. cell our XCell process customers significantly

and performance. XX% organic quarter date. Moving the Overall, XX% to our three was to results now growth quarter our financial over year year-to-date and for

over paths. first XX% direct the filtration ATF systems and was single-use growth of the months for were systems organic fiber nine quarter and both hollow module our OPUS chromatography by driven For flow columns, and prepacked XXXX. and businesses, Gains

Gene in therapy accounts almost the to XX% XX% of sales revenue, European again range XX%. and up for were

plus XXXX. expect due quarter our down year in XX% first for year still date. proteins significantly now while business, ligands, growth to proteins softness Our since And to the post is up we to expected in

diversify invest is encouraged the in a demand reports to scale marketplace, to the next in very expected prior by overall limit NGL-Impact which we utilizing are we that gaining our the for overall XXXX. supply and discussed A Repligen customer traction As in OEM resin A with largest key portfolio, we ligand expect To accounts the will calls, number impact few next Repligen-owned business, chain a reduce over years. Protein year, ligand in our for of ligands up ligand their proteins on our continue to

So systems moving paths, excellent our flow direct now single-use hollow an ATF. in and TFF filtration business fiber had modules, with quarter, businesses, to our strength

Spectrum Our third business all regions up accelerated in the quarter, XX%. approximately with

continued health. We are areas gene application therapy adoption products vaccines seeing to of across to multiple fiber hollow animal from

strong topping Spectrum million, one our $XX revenue tracking hollow plan. ahead synergies overall adoption $XX synergies close to systems now accelerate, in Demand million, our year year deal the is for with X. of to about model TFF Spectrum are which with quarter systems production-scale fiber continues deal of from the for

On year. technology, see the strong interest evaluations development ATF XX% this front, in the we up process continue to with

regions customers implementation again high, sales finish some XXXX moving encouraged Demand plans late-stage robust remained by across off in the and are move into scale-up were of for with key we as the Single-use ATF Asia. and accounts we XXXX. into

the XX% XCell We sales to the ATF by of XX% of end expect year. single-use comprise ATF to

Asia sheet in cassette business continues gene to well, process in flat therapy single-use for accounts. continued Our perform traction cassettes and demand our with development and increased our

volume outstanding chromatography, growth. our very quarter, with unit business columns In and revenue an had prepacked strong

recognize therapy As accounts customers reported gene see continue of last benefits adoption quarter, we prepacked value of and the this as to columns strong application. for

integration with here the traction strong track. right Technologies' well really first executed XXXX, have quarters businesses. of we through three C across our on is overall, So

ahead are Spectrum. synergy We revenue of for plan our

New hitting products stay to market, and building demand. we're are of capacity the long-term out ahead

will in and you look February on walk our very in performance year forward the to hand overall to confident now through updating that, year. over XXXX, are I We Jon I financial about results. for call the our with finish our to And

Jon Snodgres

reflect for quarter our financial XXXX guidance mentioned, well of and Thank reporting morning, third as financial Tony, we good are the the To for you, all Unless financial non-GAAP measures. date, updating discussed everyone. measures year. as otherwise our today results

net the $XXX in results, deal, I'll result Before raises, our an minute diving close recent the The XXXX million estimated cash increase effect out financial year-to-date shares. X.X combined of of the final of and cash and our on our of impacts on new our convert a Technologies has issuance extinguishment share including to C financing into million activities, a count. and May the of take quarterly

third market and raising both ramp in year-to-date very guidance third our XXXX to we And quarter. release again bottom top financial demand. line delivered results, our up to for systems morning, you've strong for seen and financial as and this capacity, quarter we while stay our are of the our ahead we press now strong continue the in Moving personnel financial performance to investments year,

currency delivered at Specifically, and of we XX% of million, organic with growth $XX.X constant growth of XX%. revenues

the IT and adjusted a over increased while long-term year in finally, up in growth. income line, EPS million increase adjusted diluted capacity $X.XX us systems year-over-year invest operating Secondly, year fully continuing we to bottom to reported XX% And on share. to we for to per $XX.X set by XX%

regional As at grew in year-to-date XXXX. combined XXXX, the Asia basis, a very C Tony and through North basis earlier, product period XX%, versus our greater on direct a Technologies, to the first growing while at product On mentioned nine XX%. perform revenue filtration well, months at strongest grew chromatography, continue XX% franchises, and than direct Pacific organically America Europe XX% in was comparable in growth, at excluding

Overall, our filtration and will America QX for in proteins direct quarter chromatography businesses and greater the Overall, than and expect for proteins, our and North to came accounted Asia at strong greater in in direct on year, another XX% at product businesses visibility, the grow comps organic. revenue product XX%, tough and expect respectively. against organic, XX% continue in we XXXX. XX% to continue Based of we our lines XX% than year-to-date strength will that market direct overall our period for Europe grow and for from

operational resulting increase the Moving of increase third Adjusted third capacity margin profit execution, an third adjusted $XX.X million, the Through third-quarter down XXXX, year-to-date systems quarter to XXXX. strong million of our XX.X%. offset margin XX% was statement, for was adjusted of the Company an facility, compared to XXXX, XX investments gross long-term directly and XX.X%, quarter was partially of compared to income growth our expectations. gross XXXX by of quarter $XX the from points support gross basis or

respect systems product operating the expect of related With third and X.X% million capacity, to or investments adjusted modestly in development $X.X and our for research compared $X.X gross to in to from continue sales through personnel, XXXX We million support of fourth the to volumes to period. expenses, lower higher expanded strategic quarter, to costs flowing stemming the quarter XXXX aforementioned factories. adjusted margins the

period addition to Technologies' bring were spend systems, X% R&D from program pipeline. the key as and new products increases year-to-date expenses in due period TFDF support third-quarter market. technology, the well The in was of investments ATF increase revenue important as to the C to Adjusted of the XXXX third-quarter and in C new our continue overall through Technologies XXXX to controller

We XXXX expense million compared $XX.X continue $XX.X revenue XXXX. commercial SG&A. organization, systems. facilities tied expect for SG&A adjusted Shifting in approximately R&D quarter million XXXX. of Repligen third increase adjusted Technologies in C of the X% an expansion for of Adjusted to the in and the to full-year to IT year-over-year overall comparable SG&A our was expense and The the to to addition of was period of

as expansion in adjusted of SAP global expect other supporting the implementation the facilities to and and IT head continue We operations in increases long-term well our related Waltham, count depreciation fourth commercial to XXXX, expenses SG&A support investments, growth. in to quarter as of

to to approximately is continue full-year guidance. we reflected and our XX% of expenses overall this adjusted revenue, XXXX be full-year SG&A Overall, expect in

operating at for come expect the to to in adjusted expense sales XX% to continue of We XX% year. total

third XXXX. income to $XX.X $XX.X and operating XXXX in adjusted comments the our was reported million, EPS, a increase of with on million compared now Moving income third-quarter XX% consistent earlier adjusted to quarter

offset volume adjusted margin to increased XXX was reduction was basis XX.X%, points in more operating of of the XXXX, investments. a by where third than quarter compared leverage Our sales quarter the

range our last of expansion increase we XX XXXX, to basis adjusted expect XX% a points full the XX%. to of guidance year versus by margin operating now For to

income increase an compared million, XXXX. the adjusted $XX.X million $X.X of was XX% net to in third XXXX quarter Third-quarter of

third of the from EPS an Adjusted in of increase third in of the XX% $X.XX increased share quarter XXXX, to per diluted XXXX. fully $X.XX quarter

of GAAP our $XXX.X and third-quarter equivalents, C of net cash debt which million acquisition September metrics, and are XX, financing at totaled convertible XXXX, second activities, extinguishment and cash Technologies. the Our

SAP ongoing XXXX to we cash our of inclusive plus On of a and year-to-date flow of operating third-quarter program. related primarily $XX.X $XX.X of million, activities basis, free capital investments our capacity implementation expansion cash million $XX generated flow, million

Now the moving earnings to tables non-GAAP in XXXX XXXX in press release. full-year financial guidance, are reconciliation our for reconciliations today's our guidance GAAP to included

discussed non-GAAP. may by all our Please headwind unless mind financial As projection in foreign X% also will guidance noted, otherwise keep be rates guidance our beyond XXXX previously of in impacted a mentioned, exchange on XXXX current that be sales. fluctuations

market XX% Today, with to million, and and increasing organic. to tightening full-year previous a to strong from continuing GAAP as range million the in conditions increase of to expectations growth the revenue $X.X of overall XX% $XXX our we reflecting XX% million $XXX range, our our execution, XX% metric, guidance, reported and midpoint XXXX are of of an

increasing XX maintaining guidance for our we basis adjusted are We margin XX% to to to and non-GAAP XXXX margin XX% points XX% XX%, are by gross guidance revenue. at our of operating

our of to at to guide. million $X increase income operating adjusted $XX for an guidance our raising also million, compared $XX million to prior midpoint are We

other full-year income reflecting from a our cash to approximately income million, higher-than-expected adjusted $X and interest increase now income we $X hand. of net expense, see previous from of an On expect million guidance, on

We are our expecting XX.X% XXXX adjusted pre-tax to be tax of approximately expense income adjusted income. now

guidance compensation our investing. from previous a of benefits exercises stock XXX-basis-point compared result is reduction The to higher-than-expected

our We to million of to XXXX the net $XX $X.XX to million of are full-year adjusted by new of range diluted $X midpoint midpoint $X range share. as the by $XX fully at per well income as guidance raising also EPS $X.XX adjusted to million a

XXXX, $X expected expenses depreciation $XX midpoint $XX are $XX.X EBITDA full-year expected We $X.X for million million our be the and million. increasing expenses range to to to amortization with adjusted million million be at by intangible to

-- of to weighted fully assumptions expectation terms average have XXXX, XX.X at year-end. In fully count our we diluted slightly for million lowered

For weighted average approximately quarter, the million. expected shares XX.X diluted be fourth fully are to

at guiding to prior the CapEx end $XX full-year of XXXX of million, are guidance. our We upper investment

$XXX we and of equivalents, GAAP increase at million cash the In of million $XX to or terms year-end of million, expect range our our $XXX cash guidance. be to the XXXX to metric, now in compared midpoint an prior

report financial for open guidance I our and the turn questions. and call completes the the to to This lines update, will back operator now

Operator

question-and-answer with from [Operator JP We ahead. Peterson question Instructions] Please will now begin the First Tycho Morgan. is session. go

Eleni Apostolatos

is This Tycho. on thanks. Hi, for Eleni

order you're in back comments you Going the you've on talk seeing to and at for dynamics called protein the -- offsets now lower XX% past, more little your business I the with expected the the growth can on to year, that you're ligands know the lumpiness demand? but a

Tony Hunt

Yes.

based very bit QX ligands QX in half Growth both So from general, first of for two strong as offset had on so predicted, ligands I think as year growth accounts. the factors. in we seeing lighter well, was in exactly OEM lightness were came good had the factors little we that a top had which and our a a in the of very it demand ligands. we

And year. as into finish we'll exactly see we the look for can we where QX,

organic that. XX% it first if honestly, since in the a strength factors -- the overall And I XXXX was solid seen time in good look for that a year, proteins, about confident ligands. at we're we've real growth and year think is, you for So which growth

Eleni Apostolatos

what then where terms C stand? still And talk could among Tech And force efforts, in get leveraging do of And the direct to of the other terms in the cross-selling integration in about you regions, done? opportunities? sales China, you needs

Tony Hunt

Sure.

the small On sales that Tech approach for side, drive process of analytics dedicated the will team taken Repligen. C we've building sales a

continue build putting first call products. be we two if the So out we to products FlowVPE go portfolio that that analytics. are we'll process next our Solo and what -- over of we're out expectation obviously, products years, will our the into the that But

dedicated of team, BSS, the what do with gone the a where small product we've very So bioprocess we lines the similar strategy to a sales which about sales specialists. bioprocess we with are talk

analytics. sales think C of Tech's focused on So that a about as sales team group are dedicated specialists

and C and happen trained team. up sales got end regular the lot the will we've expect force running, the sales there we of the Tech the be year, which clearly, Repligen of interactions once Now between team by and will a

So dedicated that are business team. will folks will very we'll those but the expect closely together, teams responsible the for that work the be

Operator

is from Please The ahead. Puneet with question next Souda SVB. go

Puneet Souda

all, as you just sense taking on at a that and a any So Can a had of where versus get high share quarter of your were in product that market saw seeing the strong expansion? to wanted I the maybe level from view us growth first the growth of overall sort the the new you well you peers. of give overall sense growth you

Tony Hunt

Yes.

high-growth our very the have and for think filtration very overall, chromatography lines. well. product we've done maintained a Obviously, through quarters rate I three direct businesses

We as moved of demand order continue through to three see year. we've strong the quarters

strongly that off fairly again, finish we'll So year the expect here.

reason good to of general, the marketplace. the that related in I So our products think have are growths the is really that the in we differentiation

systems our So the ATF is from so dealing flow whether sheet or TangenX cassettes you're Spectrum, highly flat or portfolio differentiated ProConnex or filtration the differentiated, with paths there. highly

you are if that is the of really OPUS chromatography been also to differentiated highly at for trying area. prepacked then portfolio, demand year a major making our we're capacity we've hearing at columns you're build-outs. us, to transferring And look one start systems. in into what do And And into out the -- and things that's look about building We obviously, right? us, that from investment investments Marlborough. ATF predicting ago We're long-term over a building made the

to build Rancho, out -- is modules a we where we the Spectrum out And ProConnex doing as for continue our on very systematic OPUS that in future. look the is site We're and Spectrum to building We're main which manner. obviously, in products.

the like have position we So in the we're marketplace. we really --

ATF think in it's I coming going and are Puneet, We puts like forward. or the products, it position TFDF new controller, a good Whether through. that us

Puneet Souda

just here to mix what's mentioned And of know in number sustainability off then, of XX% gene overall, the the and And market demand maturity of -- And if that a the coming here? you some sort the accelerate overall, therapy, but growth given terms this XX% there. early I sort the -- into number of phase the is think as could of wanted of that? market don't I the you the I growing provided sort just the in

Tony Hunt

think really that I to at tracking for for great we're of three total of Yes. quarters revenue, revenue question. through XX% Repligen. year. It's And us that We're and the now, right we're a XX% pleased that's

look scaling. you see If And at market closer of much number CDMO XX% a that the revenue without is activity still Obviously, of are in of space. years. therapy. it last we're clearly accelerated probably We therapy OEM very business, its a infancy, has the the couple the companies within gene of over there's lot in to gene significant

I what through big XXXX products companies the question X, Phase their these in think XXXX is bring happens Phase and as X.

all we -- sure everybody peers all and think little the think of But way I gene our a all the are I'm have see see same the I is seeing kind encouraged we're traction by it space. therapy bit. that to and So everybody wait in encouraged, is that

Puneet Souda

market in more us what Tech? with you new new capturing on integrate could commercial there next Just I opportunities are are that of you lies help the C help it C understand just the Flow, the accounts? force sort here expand the if of in -- have Solo could you expansion for downstream? and where is to the you last ask largely you And in phase could as to the and of Or opportunities place one understand sort Technologies, products

Tony Hunt

Yes.

the of C North last a clear, build salespeople in when I added over America. the was to out happened, building that number needed Tech tremendous done of It the that to commercial the think a job We're out with thing that acquisition in the and we have team. in number really have a franchise. adding eight years Craig is XX teams big salespeople,

key same the Korea some using in and distributors in, Europe. we're in done We've of in added the China C We've and and Tech Japan. thing India,

we're scaling -- across formulation. the they're from right direction. through The applications protein everything all for measurement post the me, go to whole in final for So way concentration the workflow, clarification,

floor. it labs control the that analytics -- types to into And the are right of off-line, bring X the at formulation goal new adoption is think SoloVPE, accounts to technology, No. in manufacturing to teams, and line and on new do we're the interested I of that are the development now, which multisite groups The team is ranges to from accounts that app quality process labs fold. the sales -- that's to the really, adopting bring the to

that seen traction, concentration demand we -- through nice And continue device. actually year FlowVPE gone in gain to some we've XXXX, this some in-line that's we I to go is expect is as and think going uptick protein the going through a expect as really We've which that measurement XXXX. into

Operator

Our from is go Blair. ahead. John next with question William Kreger Please

Jon Kaufman

Jon for Kaufman on Kreger. is This

the at of I it XX% looking organic quarter. about fourth updated So your in suggests XXXX guidance, think growth

Just of that given for line reasonable about the years? demand think commentary, your investors over level a few growth next bullish to top is

Tony Hunt

Yes.

the had So is in right, year. Clearly, fairly organic you're be QX, close what to a in QX. predicted terms stellar will we've growth of that

half XXXX should of the second remember people was strong. really think that I

the XXXX. in quarter was strongest XXXX Our had QX that in we

where concerned up overly growth all in QX. at we'll is that organic not finish So XX%

growth I to to going organic think think comes when when what I to comes to be. especially is XXXX, call XXXX/XXXX, early the little it it a it's

We with moving clearly some in-house. obviously, headwinds, have right, volume some GE

the that very some team. -- R&D out products our of that coming by up ourselves. to year through but We we're that, our having are product think with I tremendous counter portfolio. really have We year set happy a We've And love tough this comps.

of think in before play just XXXX. we'd I high QX coming target obviously, bit orders we range. like able is making to with a QX for as said real a see growth products to longer we've want company. that to call early out and a a through, little term, end Organic to the And the XX% But new how always And target XX%. here be for us

Jon Kaufman

makes sense. just this TFDF, can a differentiated you opportunity the then Okay. compared And do of really what ATF? how offering? you size on That think this makes about to And remind us

Tony Hunt

the think we've years. been around about the XX-plus it's is since Obviously, when the think I ATF -- you for Yes, had mature that very technology ATF, in XXXX. sense

it So that N-X. of from has number a applications using to has Obviously, very perfusion traditional people done well. are

the we Hard that true days. TFDF versus be comes with TFDF in to levels a that to getting a to make and alternative to use what launching as And essentially single to to is out of speak, do bioreactor, comparison just benefit TFDF filtration the not combination of differentiates centrifugation and levels technologies, because other early you KrosFlo be filtration able technologies and is to you're to filtration clarity same some purity, device. the but able of, of the have accomplish get of depth so same depth

we've and I done facilities that to And a alpha/beta being working able by large to in in their really of that's that for number have been the it's sites at work orders a forward this run moved TFDF be technology We're with endorsement think placed very the encouraged through companies year. XXXX. skid manufacturing systems good

here. So think really part that's encouraging I the

be TFDF I too make comparison we're think and between a able ATF. early to to

perfusion; then and be is it in at which look would will is clarification TFDF, one used I in way well which is really now technologies: is fed-batch. positioned two Repligen predominantly with used ATF, The

space bioprocessing. the good clarification a for us it So position in in harvest puts really

Operator

question go is Johnson Next ahead. Stephens Please Jacob from with Inc.

Jacob Johnson

a now interest C cash Maybe process you've analytics but opportunities just own months that Tech? M&A balance early has any you there. couple this more Are and to for sheet, here? ask your on you too the now of thoughts Tech in got owned here changed some seeing assets updated C that question, you've Or

Tony Hunt

Yes.

think big we've we for continue think it's I M&A done a last at. to the that something five is of Repligen part will over years, and -- it's look I what

all in around similar find assets. to is XXXX. have right what we trying in pipeline the Our It's XXXX to very

like chromatography. In terms we we area of really like. obviously, that's analytics, also and process an But that filtration

continue of continue that's we're at bringing the terms coming we other So expect to into look the space going over assets do broadly and that fold something years. the in to to

Jacob Johnson

maybe on making you then you're growth give the sort potential FlowVPE? of think could us of an investments I update some there And ahead ramp.

about how it that product going forward. about and how think talk doing is should Just we

Tony Hunt

Yes.

the So a I see we Technologies. C small from overall represented probably deal, you FlowVPE when of announced numbers the can part from think the revenues

So diligent really, pharma is this with working tool. been and been and very this, an have large as look of we've different Craig number year, really a doing companies doing measurement what they in just in-line concentration to biotech protein as his team implement

So clearly made progress this year.

really The version R&D the is on team FlowVPE. next-generation busy of working

size of technology, the decided and timing exactly of really overall haven't We the software hits like things just in they we're on. are when terms we're of the that the focused areas the market, but that really working on

and next-generation-type frame we February, talk So next it's year. software, engineering I'm more an sure, May when time get into we'll product, the it, about

Operator

Janney ahead. The Montgomery next question Scott. is from Paul with Please Knight go

Paul Knight

corporate business that or you cell at your have? that above market? Could talk Tony. or and market And to overall to what growing it Is rate? fit products therapy Hi, gene you the specifically,

Tony Hunt

Yes.

fiber So I'll product line, products. the modules product start filter we our at hollow we are with as with OPUS ATF and cassette flat traction and When with our well. our look portfolio, sheet seeing clearly good

significant it a actually go products. we of terms across have So swath of does in what

at definitely the above within that our don't the exact but rate overall therapy growth the for growth gene seeing growing we're it's I portfolio, rate Company. or in have

the with, and So I think larger-sized we're it's we're -- really when you therapy gene that accounts. CDMOs look the of at medium- the companies operating types to

X, trials for years. expect Phase very active. which will and if clinical over And they Phase said been will the momentum the is gene it I active I as Phase the X, next in earlier, still it's around continue that really in continues perform quarters question so few stay And through X, products are think three that think, to the how therapy, big I'm I and sure

Paul Knight

the about but a protein business, a Wales partner it's I I could regarding programs your Tony, And then out you partnerships along? you German, talk and those believe also moving operating of are JV, lastly, or have know how

Tony Hunt

start with Navigo. I'll Yes.

have -- we relationship a which Germany. with Navigo, business relationship So is in

So on ago. in put ligands, years that place program we they're working so two next-generation and

a We're about with we a a hear the we of when product launched progress, launches year hit ligand -- around made ago. expect XXXX. that really has to A Purolite work we've The little NGL-Impact been over lot

as to very look well product As term. that in I prepared there's in said remarks, Repligen scale appears for be doing to the long with the benefit the I customers a in And think technology, my marketplace.

really portfolio out building ligands. a of it's So for us around

I -- I before, in I were that we but manufacturing mentioned the owned ligands our were at strategy space, were our when all the by looking we think almost when partners. protein overall this think

so, we are that a the to years like feel for running that us it's program been unique few that's the And ligands and for now. differentiated of we've a marketplace. in develop developed And important portfolio been Repligen-owned, with

see of that And the years, over I of next fruits expect to work. couple the

Operator

Please is The with from ahead. Matt next question Hewitt go Capital Group. Craig-Hallum

Matt Hewitt

congratulations morning and on Good the strong quarter.

I that of but you but answered, acquisition, A talked your of for lot been regarding kind it's progress on what the of technology I about of question made some Just products. that last into still days, them me, front. guess. you've some incorporating filtration have C quarter, wondering Tech one early I'm realize

Tony Hunt

referring the And was part continues -- that as to the to on potential Repligen great question. what of last FlowVPE was a Yes, really systems of I manufacture. I call the think

systems fiber -- ago, a you put focused So systems on team very in year TFF space. hollow in much a place we the if

Obviously, they're downstream. very much used

that as can we into we FlowVPE, And think we how skid integrate overall about about systems. so think

think it's marketplace. the around develop. in something we the for for FlowVPE really stand-alone with a obviously, getting and system integrated as will be adopted that now broadly be foreseeable we'll probably to I future, either And offer it that or would able

Operator

Selvaraju with question The from H.C. next Please is go Wainwright. ahead. Raghuram

Edward Marks

Ram. questions. on Good for Edward morning. is the appreciate I This Marks taking you

you is going integration regarding faster the how the could was of You same the Tech so in this same C And wondering I mentioned your any accelerating it's progressing guidance you on estimates, that ahead Spectrum do rate. those at integration whether pace year about future? metrics, at the all anticipate just a give internal if is

Tony Hunt

Yes.

got the little in obviously, we I not done that would of well we deal, Really, sort ownership. that they us. product talked deal year partial in, really when August, and in in a of synergies done Spectrum terms said of very in about first we think bit to full kick that has -- any really the and did to think start year expect for -- line, I good revenue

C step we're with what what to terms In what Technologies. different That's commercial one build doing. get them no focused The to right? of with real do C the That's on. trying organization, for trained. Tech, we're is It's out we're us

see synergies dedicated methods no we we're we running, -- of There real then that impact our place in have the up are there we'll can sales able already no to or that in and field revenue dedicated see having place going is that's be the Once to leverage. sales, that's folks a what start team to XXXX. development service a is and really team also the service application specialists that in Craig is actually has broad that team organization

of revenue bit really, of be guidance to think, year. there'll terms the terms next give in we to a I what get I some in be will February expect. to call probably able more synergies, little So when

Edward Marks

previous can And how moving that quickly, on into dive really answered Understood. hoping question. just to bit M&A deeper I little a back was you you

shape previously, targets you viable looking might prices, and transaction for? for currently, be Just size presence be your really systems look wondering a would conceivably especially in? a what guys you are new the And you segment you you then and appropriate that then if could mentioned you of Or to see area? but little of increasing currently kind business at an on the into bit move entirely

Tony Hunt

A few Okay. questions there.

that and we've size $X that We've looked in are range. in $XX to targets with five start I'll last we've shape. million the I -- over revenue think million So that at shown the years

our That's is around to it leadership. do That's Repligen. at comes kind what looked size we we've at. Clearly, of M&A criteria not always changing. that the really That's when technology

in the That's us marketplace. what's differentiated

look we've that could the we've for assets not we fit at technology, there we with Repligen. what look assets, right? we So are when do when out a the conclusion or the Because growth passed of lot come just you technology we to at that that on, look look right or there the it's at at

very selective we've been at and what So looked in terms what after. of we've we've gone

I are lower In assets out have terms of it There multiples. that you depends, think price pay, right? there all that

in is the and range. But everyone is assets everyone think are bioprocessing to times general, unique good six revenue I selling And XX different. in

I outside that to moving really we've bioprocess of think terms -- true bioprocessing. our I stayed space, In core think

haven't research We space. into looked the

the companies, space we that was some two I tended comments to or last at in right to feel bioprocessing, think but other made last XX% didn't move for year and to had in XX% in analytical Repligen. and we calls I they the XX% research the be over some opportunities like that look that the maybe few

doesn't into think mean I continue we forward. would what adjacent to that to consistent going we that over to going move last is moving done be space. blueprint blueprint It five see we've we'll as an So assess. totally you're a years, the reject But

Operator

Joe is go Please question next The from Analysis. ahead. First with Munda

Joe Munda

been of curious, answered, to of you questions Good you but ask wanted Tony. capacity. some -- build-out I the lot there. A I'm talked my gave question have detail morning, regarding one just

devoted maybe lines? of on bit types about a color the could do you or to see little the business build-out bit I more, level Rancho. garnering more which business wondering are build-out resources a you was -- Where the little give You themselves. talked if us in what high capacity

Tony Hunt

Yes.

really see to We think build-out, in focus. can strong seeing, we product five our that's of goes business. want demand been and build -- very We're for years, the line. or kind of which again out I really capacity ATF over OPUS that four obviously, our our now, our I this, terms transparent right capacity think look you in is been we've about have we priorities at #X XXXX out so

decision So around Marlborough, of quarter. in those you have our make We've been larger see, Center centralize XX% to final up ATF that equation especially to XX% really business, filtration range. Excellence. again, of lines. where And need that we can as that and see last Spectrum part growth we and been space in then that And really to demand has as has around historically into a of the product we made the sure seen in for acceleration, ahead now, Rancho the XX% the we're our staying

and the our set way of business point those we're runs, we of operations because with yes, have to So teams the an business view. up folks operations of way each dedicated from

the out to So really they capacity are years. the the folks over next building that few are dedicated

Operator

Tony closing the This for question-and-answer like session. to any would Hunt back concludes our conference turn to I over remarks.

Tony Hunt

like months a forward year I'd for of bringing everybody morning. and to for how Repligen. to up for catching end we at thank us this Look Great. to joining on good everybody up with Obviously, really nine did you speed the XXXX. February fiscal

thanks, for joining. everybody, So

Operator

is for you conference attending Thank concluded. The presentation. now today's

You may disconnect. now

Repligen (RGEN) 1 Nov 192019 Q3 Earnings call transcript