RGEN - Earnings call transcript Q1 2021

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Operator

Good day ladies and gentlemen and welcome to Repligen Corporation's First Quarter 2021 Earnings Conference Call. My name Illie [Ph] and I will be your coordinator. All participations will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

remarks, be formal question-and-answer company’s the there a will session. Following a who to limit ask at accommodate order wish of all questions a In be individuals to will questions, two time. there turn the would for call, Repligen. Newman, Sondra like for I of Relations call today's Investor now Head to your over host to

Sondra Newman

three XX, update and busy March the Tony Snodgres everyone. updates; and also financial XXXX. covering be year Hunt today financial results Good current Thank CFO, you us We’ll our our you, morning Illie. ended this season. joining highlights business months for for the We’ll results guidance financial our and cover business XXXX. Jon appreciate We CEO, President cover morning period and in guidance. will a our will

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

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

GAAP morning, non-GAAP include currency, in are expenses results gross sec.gov. constant that gross press included operating and to to we’re adjusted share of tax financial EBITDA current to better revenue as and investors income operating intended at During we per as measures which measures should the of opportunities. when net the investment figures earnings results measures, including GAAP and The to and Repligen’s posted and performance EBITDA. well financial release non-GAAP SG&A, growth expense, historical on providing These website not evaluating to Reconciliations the and viewed income but Repligen’s against report as R&D operating guidance. is and profit also performance adjusted alternative call, peers margin, today’s following; are this issued benchmark be this and margin, income in enable an non-GAAP

Tony Now Hunt. the to I’ll call turn

Tony Hunt

you welcome and good to QX Thank Sondra morning call. earnings our and

of overall non-COVID from and We accelerating are with performance. XXXX in our of delighted accounts the quarter business a COVID drove our a for demand demand performance combination first where robust

at made For up revenue XXXX with in approximately coming the growth points accounted COVID revenue our of growth. was XX XX% made from and of overall total our XX% XX acquisitions points in up we of Revenue quarter, related ARTeSYN for XXXX. QX programs organic a over up XX% including $XXX versus million growth.

especially XX our performance strong the XX% were accounted base by our our continued of our we products. pleased Finally demand approximately and points which of of reflecting for growth revenue business for

approximately XX%. at will year $XXX these or and of to million of in we developments, range therapeutic finish business last QX XXX% the of out for the expect Orders revenues based As planning XX% increased orders on orders, with to quarter exceptional in second with We anticipate that our to into into an half noted up on but the our contribute strength beat, only with more were the quarter February now overall non-COVID the this prior now grow programs guidance. to in not saw carried year COVID above in year. revenue XX% Based and call, revenue our over customers year, than million. vaccine also we $XXX XXXX, driving versus our

on our for update results, quarterly our XXXX. into jumping Before strategic want a initiatives progress I provide to

of number it support accelerating building out across been Our last our plus all is the for months demand capacity to priority, businesses. one our as has XX

our unprecedented know, you industry As is seeing processing products. demand buyer for

So curve. it's we ahead stay of critical this that

has as and in an last across we outstanding team product the our than lines. of and job doubled more year Our over have tripled capacity many our done some operations output cases

in For time than cassettes example, in our products overall doubled capacity and flat hollow this fiber sheet has more period.

OPUS are columns, our completing we stages for which needs. front, four pre-packed will capacity suites chromatography of an the final four immediately support future additional fully OPUS in built Breda for On in production, expansion and add to the

We local production facility in customer’s expect this to come early QX, in offering Europe. online

million $XX as invest programs and in assemblies, CapEx sheet to systems, flat filtration hollow and fibre path flow here in out lines. plan chromatography capacity we to for $XX XXXX product million Finally, build we and

many be XXXX. second We programs to the to as of by year goal in half manufacturing through to we this mid-XXXX expect completed these to support company dollars scaled of a of in billion revenue capability the securing our

Repligen. is and commercial of businesses. been a first into initiative our evaluated needs second for we integrating It's months as ARTeSYN, EMT operational team around NMS Our four these and busy

here network. for for three for having ARTeSYN quarter and this orders. manufacturing a our very component are good and the capacity two made Operationally, the both confident All We're talent as XXXX in across of our or flowpath commercial acquisitions, with expanding excellence We of ARTeSYN gain teams progress with integrating well support the these revenue Waterford, in centers million building focused XXXX. XX chromatography filtration in and planned companies. through out XX to these or have good EMT above sales as we the guidance on systems that tracking of portfolios on assemblies, addition very million of for ARTeSYN acquisitions significant at to we

deals that processing, workflows. stream fluid Finally, chromatography real benefits sustainable the we and now critical have bio mass of move these into consumable doing a as is of a management, one we and the further side of on filtration

of ATF next Spike generation for year launch with lab start our initiative the Our which launches. Again, for is following the use of third rapid and is by the Resin VPE, vaccines. Spike very encouraged We're strong for FlowVPX us technical to to of the protein product and evaluations of the new number and in reaction orders the initial launch product the controllers, acceleration many single these Flow in the leading based launches, called product, Resin, FlowVPX. around strong shipments a players by with a Protein

Finally, therapy. our fourth gene on initiative traction in is focused

XX% robust new and order track expected a Our in commercial in for and load, With of growth year accounts another strong gene of busy XX%. with the in we orders. adding are field applications in another good QX, team were therapy delivering very quarter XX to on range

to franchises. overall business the and gene base overall was two cassettes, than and mAb doubled clinical manufacturers implement and modules Infiltration thirds strength exceptionally quarter strength business hollow or was continued and The continues load of of noted the for to earlier strengthen of for to customer fibre scale lines. and vaccine accounts demand. more performance. our devices COVID product board the approximately processes. flat as with in accounts COVID all technologies vaccine sheet Moving here story for our therapy demand and the segment our these strong accounts continue with XXXX is across ATF our Order growth The quarterly non-COVID this contributing of now the up therapeutic XX% non-COVID

to scaling we a technology the ATF is wins addition boost doubled to as number bioreactor yield. example, customers For late processes, stage ATF have of in into commercial for COVID used business our

differentiation which reflects systems an over the portfolio, use filtration even filtration XXX% quarter further our the skill addition with key This single the up process now with business Finally, is including proforma. and portfolio, in differentiated our marketplace systems, we the of fiber had outstanding with benchtop the hollow system. ARTeSYN ARTeSYN have

capturing new Our is filtration portfolio also opportunities.

to encouraged the here adoption COVID therapy of which products vaccines, track by double the and applications, Flow we in getting XXXX. on CHO upstream in next performance Filtration Tangential and the be of parts Technology, The to specified example, our is again workflow. or continue For are gene Depth into downstream generation TFDF, and

any from significant activities and expect these seen into second the half impact of to revenue XXXX. XXXX be We in

double capacity and the we Given we for projections filtration to which are essentially year, business, in the raising in the now here expect guidance our overall strength for orders, XXXX.

orders an quarter our the industry. chromatography revenue on prepacked on despite and suppliers had chromatography, from a Moving of resins quarter business our solid to OPUS availability limited outstanding and

year that expect the situation more capacity We the online. resin as delivery comes as through we will go improve

still As to XX%. expect and anticipate we're to evaluation the we very early chromatography we'll the see by of the orders as resin mentioned in range earlier, our franchise encouraged in through XX% grow results Overall, XXXX. spike pickup we go a of

key our high. we robust for as this has also OEM strengthen Our factors. protein carried demand in and The ligands with resins into observed well momentum remains growth with proteins market the year products XXXX A on for from ligands business over demand performed partners

the in we XX%. to proteins the of now to year, For expect grow XX% range

had business to analytics start process our year-on-year. an over up Finally, XX% the excellent year

currently uptick of an as into in companies instruments these are manufacturing, team in impact implemented at of demand testing coming We XX% the saw for consumable our the drugs. COVID the process We of with and commercial over new global from seeing SoloVPEs accounts. QX many sold supporting were

very XX%. remains this high Our the of to range with end at of for positive, expectation growth anticipated business the XX%

So strategic overall, strong to with and to execution financial year at excellent start the off an operational, we are an level.

opportunities and to really minimize of products namely on premier expansion Our offering times winning thus of meet marketplace. differentiated EMT, new the the and team demand, lead systems ARTeSYN, new to and focused and priorities capacity remains development integration increased the key the our expand NMS launch in to

long we're about positioned be our to the We future. term continue and well to growth attain targets optimistic

employee XX entire able to add that for And to would XXX turn continue team our build look new We half financial and to organization the exceptional the the operations essential deliver the the year. talent we progress to we bring John not on the Repligen and our we've over possible first expect growth. during the and you of call be our this into prepare continued forward performance through Through updating year. update. to last products with dedication bioprocessing And commitment without of Our and over individuals to I'll the for XXX months, been to base.

Jon K. Snodgres

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

As you've continuing significant morning, a first of while this for and to our load. record revenue we seen quarter strong earnings in order growth the release XXXX, delivered see press

half our million reflects quarter, incremental revenue along Tony about revenue As for approximately $XX of performance with million up and our was from of growth our which our mentioned, accounted base $XX XXXX XX% business which in strengthened COVID the tailwinds, nearly acquisitions.

and through capacity expanding three and of set Repligen that our modalities. most and new market fluid and the the applications increasing a more We to of are acceleration manufacturing quarter drug horizon to products integration for year our efficient an acquisitions demand move on product core, leadership recent systems demand, we into manufacturing and in of differentiation in systems. biologics offerings towards general, continue from to complement With drive product larger first consumables broaden biologics support we our branded technology through discussed, continue our adoption and plus three through processes. that Tony innovation With healthy time the with continues that our a management increased products focus in launches our and benefiting at the to expanding flexible for

our quarter first million top of On of first to XXXX. commentary. Now line, quarter our of we the revenue $XXX.X realize XXXX transitioning in record revenue

this As XX% and reported, organic growth as represents of XX% mentioned, growth.

overall our exchange, COVID program acquisitions. a revenues these foreign from a quarter we of see XXX% Supplementing of our XXXX. growth exceeding XXXX for first our point our point includes across our with product four from Within order continue XX franchises, tailwind expansion revenues. represented Overall, XX% quarter growth, about revenue of excellent and orders the to four tailwind growth reported XXXX figures first each

revenue growth in products continue drug led excellent and As to rest filtration in it world we revenue products, for in our India. of first our China, see of nearly growth traction quarter, XXX%, and the regional the strength with by of to Korea relates Asia

than and Our XX% perform continue American region with North European greater very also to and of growth well respectively. XXX% revenue

and XX% the terms revenue with product composition, of company's Asia represented XXXX, and quarter direct XX% the In representing revenue, America North for of respectively. Europe of XX%, first

down moving statement. our income Now

of quarter period First human ramped from $XX.X capacity than higher Quarter higher XX.X%, reflects capital, XX.X% offsetting the Adjusted our in depreciation systems XXXX. first profit a or of Gross manufacturing coming compared additional All to $XX.X equipment same adjusted lift margin leverage XX%, to with XXXX. gross increased online. XXXX our volume expansion expanded up gross program. million, sales, to reported the million expansion in aligned from more facility Margin costs and and versus

the expenses. down operating to adjusted Next, we'll move P&L

and new quarter development process First $XX.X expenses XXXX R&D quarter first to were XXXX dollars to million of increased XXXX period. revenue product compared directed million proteins were XXXX the of $X.X filtration, XX% run million or adjusted quarter research period. Adjusted and invest analytics of the expanding finalizing for revenue, XXXX, our continuing $X.X during first R&D towards same and in product in in for our quarter global SG&A the key launches XX% to programs. expenses $XX.X to of million compared development or team the businesses

expansion as well support near and to commercial quarter investments personnel, first our to the and enable of both reflects acquisitions, all our long growth in in occupancy as opportunities. of and spend Our increase activities term us capacity secure depreciation, timing XXXX

Now was million operating quarter. Adjusted margin turning XXXX EPS. of of an in operating an million period. XX% expansion of the quarter XXX for $XX.X reported XXXX compared to compared first and $XX.X the of first in basis adjusted was XXXX, same XXX% to XX.X% earnings quarter increase income the to in million $XX.X first points Adjusted XXXX, or the

strong quarter capacity revenue adjusted related growth with expansion impact than margin our the accelerating volume reflects First investments. of operating faster our leverage

in income quarter million, or $XX.X increase representing First period. XXX% the million versus XXXX of adjusted was $XX.X net million an $XX

changes for our our net U.S. benefited adjusted income first strong combined our the XX.X% quarter, tax adjusted low impacts stock In tax quarter performance, and transactions, own addition income from reform of a operations. and foreign related related operating incentive the growth from to rate to to U.S.

cash March First XX $X.XX an diluted $X.XX year per period, quarter XXXX XXXX. to which in totaled to the I XXX or now will share, metrics $X.XX, adjusted and full are XXXX our XXXX XXX%. of EPS at GAAP equivalents, compared increase fully increase shift to Cash guidance. million

in Our XXXX in included the release. reconciliation for our GAAP non-GAAP to reconciliations are guidance tables earnings press financial today's

As future previously GAAP market pursue. acquisitions full to may XX% guidance XX% continuing exchange and of discussed the year and our strong does mind also in in foreign up represents impacted X% impact of mentioned, guidance not to financial midpoint growth are of company growth current will fluctuations and non-GAAP. our be the to noted strength of execution This at acknowledgement our otherwise all the $XXX that rates, projection Please may by XX% keep we the unless XXXX include sales, our the potential range be tailwind by of operational XXXX bioprocessing An increasing metric million a under full in on any XXXX the million. of $XXX year revenue to organic guidance, reported XX%. $XX that

to million points of to We XX% increasing margin XXX at expectations year. maintaining range guidance million range $XX of gross income to midpoint $XXX by to $XXX margin operating adjusted of XXXX increasing by to adjusted operating range adjusted for a basis our a XX% the XX% our We're revenue are our XX%. of

not income we expect benefits to income first to year. tax are be remainder stock assumes and tax potential and expense impact be rate which consider we and of on relating the XX% approximately for the of the be interest lighter year reform expectation fourth income. through from continue our quarter additional expense of This of to adjusted other stock employee the pretax our second to compensation, convertible of transactions, cash $X We expect XXXX the million guidance from realized year quarters the expense for notes. expense adjusted effective to for of an a XX% of Based U.S. of adjusted improving does

EPS expectations are to are $X.XX range our to of adjusted of by $X.XX at expectations at adjusted midpoint million full year income in million XXXX And midpoint increasing $X.XX our to the XXX We a range we diluted by fully to share. increasing income be XX.X to per XXX net $X.XX million.

investments. fully outstanding guidance XXX adjusted be for expected to EBITDA range the with respectively. well million company SAP shares XX is million XX to expenses, the an implementation year. as million reflects chromatography system and be million for of XXXX, average to XXXX million capacity XX Our expected XX now to weighted depreciation invest proteins approximately expansion our intangible million to to XX capital The continues on for million initiatives in diluted as expenditures in estimated of portfolios, EPS amortization key Adjusted XXX and expect filtration, continued into inclusive

the metric cash expect CapEx operations. range being and million of GAAP with to our completes fully million updates. in to equivalents our investments our We generation and by and be cash year-end guidance financial cash funded This XXX report XXX from

back turn call to We the lines the questions. open the for will operator now to

Operator

Thank you. [Operator Instructions].

Our Julia first Qin question from today comes with JPMorgan.

Julia Qin

strong Congrats the morning. good on Hi, quarter.

maybe on that How revenue is new commercial And scale the So new guidance what COVID expectations, that's up? revenue coming the new starting could the And increased you help in of ligand? understand XQ? to how just is led protein spike much guidance capacity production with does maybe expectations? much us online include the

Tony Hunt

that at that Julia. the from demand question, of you great the guidance, mid-to-late coming under our both stage development. vaccines it Yes, we're are increase uptick is we're for COVID seeing most that in in commercial when vaccines for I, look

little to when we lot going year. we've went as bit even of the QX, we come February, half into think in in a in, So QX, were many a through the the into now look QXand second had I next you year orders where seen back is for which into we and quarters of more

of in capacity. constantly capacity, adding we're terms So,

as But through believe the in QX, the will happens what be we capacity. in QX we QX yet year. doesn't of curve. reflect guidance go our But terms in where it So demand we reflects

Julia Qin

pretty Got prepared the key in some Protein contribution new Resin, it. including TFDF products you do quarter? Thank new these see strong you And first traction then products, remarks, so out some wondering in much for the how you. from Spike just caught the and

Tony Hunt

Oh, launched in contribute basically I minimal, products the first those what's dollars. in are, benefit we happen it million think with well we've first with the been already still happy of in a did it's quarter is XXXX FlowVPE to great really really traction FlowVPX these the technology beyond? marketplace. years. That's seated, we've in gaining is, there new Right, that the what It's quarter. been what products and gotten two the that products the to few for is to going compared out how three

that So was to product positive. I the reaction really think

of be As we've on. resin, that vaccines. the we've as finally, on may said, And will as going you think and for spike course the the seeing on protein based track in product the pretty next technology for lot earnings double every in may right I double. And that I resin year generation going spike years. But a been to we're it and few this prior calls, opportunity we're that is be will remember, we clear then TFDF evaluations vaccines that, believe next said for of we've to have, year

Julia Qin

and you Thank congrats helpful. very Got again.

Tony Hunt

you. thank Yes,

Operator

Dan from next comes Our with question Stifel. Arias

Dan Arias

in for then know evaluations if to ability had now last Are here. the follow And you the starting I where level that a Tony, morning, access working activity. relatively demo still feeling year. Good with there I Thanks situation? sales I at and been a a or proper could… questions difficulty approaching up, maybe on as there do get a Are through you're like unimpeded? is couple gene you therapy for the if could guys.

Tony Hunt

Yes.

Dan Arias

of first second a that in help just Go ask about from follow one going looking was with stages out demand? I Are comment able of wondering new you, could ahead. comes on what versus sort as new to much new versus in I'll existing and to marketed how to up the the just the project to to parse you I market? to work you your just a you progression work XX answer after across product of was next XX XX for trial one. ask trial think months later see area. if you the business us accounts that

Tony Hunt

I'll Okay. over accounts start I the maybe the growth of progression. our Yes, with that come last say so the seated will have would from few been most years.

a as we're we pipeline. at that So gene get I platforms, looking come bioprocessing, therapy drugs you like the they account. everybody every through else it's single process not up pick a into so to in get new

think online, team field with the with market therapy, of terms seeding accounts, applications, a I our think will look to you continue the done we've put all focus And But team, bringing expand, sure, that that year on go team we They you work that's I know, if our accounts remember up. done of the first top filled job. around the job. grow. commercial that expect you revenue and tremendous And to a I folks. for place, they it's keeping in think in So gene don't good we when accounts the idea in add sales what perspective, to a at funnel a new those from amount new ago, we They they a tremendous with people, work continue has year.

out part around, building The really gene this second is, is our applications of labs. therapy,

of in So middle that now. the doing we're right

into when timeframe, summer functional. kind we running late we'll be up get So fully and of

the accounts applications give space, in Repligen. being gene our able the but So able of do therapy us work balance also with top in that'll to work with, leaders key be to own here

in with to of evaluations. say a with sales our have what think out of first gene around nothing really last I field I Yes. QX therapy The believe, all question, the dealing that, restrictions, year, team was part accounts. applications we would some work like figured sort the QX, project way I were there's but still team the

ideal, we're not it's While progress. doing evaluations. definitely making And we're

need building we expectation funnel with our keep so, new that opportunities. to is And the

delivery to now therapeutic and the is at that, really to look has everybody working COVID is you and COVID accounts vaccine get have we challenge product products to demand, the to balance, the as non-COVID when well. in them also right have our the think strong, which to, accounts, of you industry the I with

So idea for adding capacity accounts the lead of we're that to non-COVID to be that's shorten as is the able going extra times our well.

Dan Arias

deuce, Okay, two. technically, I was that know

slipping if into and like I trial here. apologies looks I third to But And I right clinical this for could was, therapy together. gene was half about these of is ask, gene where phase more wanted So now, X, candidates progression I than just are. it reading in them are in selling

if in not there to gene to are the capacity therefore, a out, it's surge it's But, So assume buying to side of speak, do close, more where at think specific that some steady so are. sort Or you that naturally that of expectation themselves we And there? that you and be is over will things sort time? the point? space so considerations to translates

Tony Hunt

as where where shorter surely to steady think much lead be just believe a time, the are look we as it'll are when gene at. working is built The which capacity, providing surge. is that it's I But we're at mAb that's opposed than to in with but there's good industry, also out just and my huge what I, and We're customers at really indicator. all only capacity. going look that for broader times rapidly everybody therapeutics, right now. to what's COVID, our expand along is I very is I'm this opinion. on vaccines, not helpful in is capacity CDMOs leading industry going the want going that's, therapy peers, also our, over a to Yes, I what be be building And

Dan Arias

Yes, okay. Tony. Great. Thanks,

Operator

from comes Jacob Our next Inc. Stephens with question Johnson

Unidentified Analyst

on is Hey, everyone Mason for Jacob. How's guys, this doing?

Tony Hunt

Good.

Unidentified Analyst

Good.

Just a me. from quick few ones

there, using gene the viral for product processes. side, the What a suspension shift portfolio? be On present vectors therapy there opportunities your to versus seems for this inherent to

Tony Hunt

look the or we've spoken move or about this when I cells. at our in the scalable, Yes, or last we products there. it's a positive a more Obviously, think so and products suspension towards in be There that ATF little you it's I cells, we of Repligen in many technology, for is definitely, do portfolio, so development year pretty the whether over It's suited what think the any that's for, a players well bioprocessing. for for really suspension the just systems, to filtration world. going have mAb it's

as it just So positive. if we see

Unidentified Analyst

Got then well, going protein updated on it to Cytiva any commentary seem forward? the performing be And relationship

Tony Hunt

proteins Really, dialogue and quarter. have business, which our very to years positive obviously we have our, for business. growth with that and no last Yes, Yes, good the really factors. Honestly, ligands been of of continue couple comprises Cytiva. conversations

a extending contract, And there's think that I update done. genuine when we'll people in process. working interest through obviously, that the current and gets we're when,

Unidentified Analyst

Got Thanks, it? guys.

Operator

Souda comes next with Our SVB Puneet from question Leerink.

Puneet Souda

for hi, Tony, Yes, John thanks taking the question.

contributing of quarter. therapeutics there. to vaccines And of solution So obviously, out to part important being the and great the how you're impressive an it's really first see all, congrats on really the on COVID

you in was if versus from wanted bit a COVID business you terms on, that that there can of strong just little Obviously, too, maybe provide maybe contribution what if anything, provide? could in too, little based but was know, growth see bit mAbs, really could I versus you therapy So vaccines there's talk business, covered a if a based to there. any, the have non-COVID there's gene anything you if

Tony Hunt

mAbs gene quarter of our based don't But, Yes, beat have XX% of non-COVID in the came from and from the business. came of our, our therapy. I split our,

we're have it whether or the real seeing proteins seeing the first where is, quarter. its the need things across be able in deliver product business, is analytics year, are did really a happy right in are shorter, out We're we're building time, really a well. doesn't has that's, our we business shorter think and which its has that done for seeing EMT I that's share now you'll matter to really I our, really team. NMS So it's to the accelerated what really performed And or our ARTeSYN, take yields base times can very gene we're some encouraging. where all And our of period That's QX, mAbs lead positive, in last board, accounts therapy. commercial again, then on that think that with over performing we business. opportunities, But we

base So look a I don't gene at in therapy But we're growth as our, for I portfolio. really it really the for we happy XX% think whole the have. mAbs. as that's QX, technologies look at versus with I our the it of reflection over really business

and customers. good of with reflection our our, a that's think sales job the field a ability team really do for I applications to

Puneet Souda

it? Okay, Tony get you that's think term? of of how Obviously, quite shots number about Got bit spect opportunity, longer do there's then the these booster about in. products that on, these a helpful. usually and And a discussion

the vaccines seeing we how revenue your mix the be, think vaccines what, longer revenue portion or COVID So, tail? do what of what here? can you of term can as opportunity, we're think given COVID ramp should the And, about up be a

Tony Hunt

on I definitely be to more, with into for that, that to whole think term, beyond therapeutic to XXXX be going clear likely booster it's that. number percent ball reports and of is crystal a the I us the same long COVID Yes, you answer pretty read do in of of is vaccine more the, what going really part shots. terms give but years, hard

demand the the on can vaccinated, obviously, that large population if So not this year, then adds booster annual demand, still happened all know really go. we of overall a the add going that's year, and to you vaccines, top global variants that's And don't if that's way later that, of you how next percent shots increased there's a see to going are what early reality, cycle. to

of So unknowns. of a lot lot

of the into think But even get, driver XXXX going on a year, as as of is a well. we, that number whole for we growth a half little COVID it'll on clearer it's this we industry. second it's XXXX. be become our And here and I of expect driver for to growth, years, that

Puneet Souda

on products are part was that a portfolio. squeeze is the the I highlighted in of Got ARTeSYN, was hair are then are part it. And any you. Tony, consumables you well terms COVID? there systems good the was quarter? other it of of there larger last Thank mix ARTeSYN, in of And system what and product if and part one, of could the there pickup you here mostly growth doing and remarkably that sales? obviously in Or the

Tony Hunt

of ARTeSYN when it's well When at the systems But expect like our portfolio, in think not I filtration see are think it's, for portfolio, to well overall and you a was look year, very mean, guidance that filtration you the industry essentially Obviously, impressive, I we're I about, doing winning. where now. tells say our you consumables. where is, incredibly whole that, combination right really our the doing products to Yes, marketplace. we lot is a all that's been double, what our

last times level. So and produce the we're demand ability a the to over And, when firmly keep That's in think the really products, as for And combination everybody's is we us. high. everybody we've the we've at industry the lead player launched It's that, focused products off paying believe of where that's the five at I four a industry. as company, years, or in the around reasonable technology a look what ourselves is established going I new on.

Puneet Souda

thank Great, you.

Operator

KeyBanc. Paul question next from comes with Knight Our

Paul Knight

you could for morning, numbers Tony, targeted is is CapEx over CapEx where at, Good that go and the OPUS? it

Tony Hunt

to through John that? you ask I’ll walk

Jon K. Snodgres

it of numbers, sheet for lines, biggest going going product million to not biggest into Yes, Paul and I we're I'm filtration but specific mean, really piece of flow with is give $XX fiber, along to businesses. is and, both the $XX flat paths about there's million piece talking hollow the the various

So And we’re a there into bit there's to proteins well, future. then actually to maintain as into pretty there's the new in investments a continue capacity amounts acquisitions. for And for OPUS. the us making higher going going bit including, significant including in expected

those So programs. kind are the big capacity related of

general so number that there's probably maintenance number course, that this And going well, Of there's $XX is to million a year, million program $XX as year. continues X then take which another or a that's well. SAP, million so as to

Paul Knight

you've your projects? M&A a is the of bit now same is you still robust level growth the And shifting future very a gone think then opportunity internal Do Tony, out there? toward products. there over Or in set of internal

Tony Hunt

programs can the grow seven we dramatically. last look, from the portfolio that has expand. The expanded an years work obviously the work over we Yes, on can continues and projects to perspective, on R&D

R&D technologies us also M&A what in, do for of through ideas it's about continue we technology want new still the we to the to we lots have to But we we industry, that, have. So that efforts. with or this whether believe compete to in to need bring

the years last -- over strategy So put in to the going go-forward work continue to to that place to continue a on the we're through we keep five expect basis.

Paul Knight

Thanks.

Operator

Hewitt Capital comes question Craig-Hallum from Matt next with Group. Our

Matthew Hewitt

Good strong a Maybe, quarter. couple. maybe the morning, congratulations on yes,

pinch bit like or as side. curious, little in talked on bit both year visibility times? little you the the as you're that you've you're that points? products It where Is to of demand position a of more on it you suppliers look at sure next And are with well how in top suppliers that kind maybe investments, from are a sounds those make you're seeing? half, that a potential so, the this So help staying as Is you getting those standpoint, the of about your if even potential pinch meet that a need? headcount times, they're your second the lead lead their more I'm capacity making into to working point? you the on the

Tony Hunt

manage working to As bioprocessing quarter think everybody right? unexpected I you just suppliers. through have in it's quarter issues never we're is their Clearly, what know it. with of both to But suppliers. working go up you you guarantee Yes, crop I our you honestly. from with supply

managed. been need the has issues through. worked in supplier worked get that side I think well through We to general, any

be capacity add we're internal obviously this the significant honestly, and in there'll company realize capacity year. times, building year, lot, type two capacity. the we been capacity that helped and spending a why but by this $XX in last And all also million we've billion puts more first XXXX. And $XX a think of the year, a be us and we this in XXXX. to we a to able a, half that us And that's of I million second that's of years for need spend year next add support, to had And position dollar year out. half of lead the second to we last half as

Matthew Hewitt

thanks. last And here. one maybe one Understood, then

what think that side on quarter, as demand I majority seeing from COVID of last related treat was the Or, you Is the commented vaccines, well? there that seeing And you are opportunities the you're demand still of in customers? treatment that the you. are case? kind in Thank those vast the

Tony Hunt

Yes, is number the But obviously therapeutic a to it's say similar said, vast you saw on I the of we side, I from processes. side. revenue think the And vast the vaccine as of that what majority We're would the year. last coming hasn't in changed.

Matthew Hewitt

you. Understood. Thank

Operator

next H.C. with Selvaraju question from comes Ram Wainwright. Our

Ram Selvaraju

the potentially Hi, congratulations operationally. the likely questions, vaccine And extent specifically been arise areas expect the vaccine solutions for the rollouts accelerated related wanted thanks countries, COVID-XX to anticipate any surges may that of in so a spike countries, you. your vaccination younger two the in particular, And vaccine items. what people, in dramatically are especially seems technologies comment can those With much the business vaccine your your for to children developed great including emerging very regard are Two upon extent. notably to have demand applicable first, my Thank there for broadening young with where impressive and to XX vaccine to of you reagents. related I reliant it And on need in that now degree campaigns which vaccine States, to to the and taking most running applicability vaccine to United quarter protein. not what you out quick to COVID-XX you secondly, respect outlook understand the to happened also, really be extent those are better factors driving to the particularly on to in control be not as space. as as seeing, on future have in questions we've in the

Tony Hunt

to I developed that on to vaccinate especially really countries, get important. Yes, people think start so the are going do the maybe campaign's last question. the the is with in that

the I to. us And we comes do demand. for think news. to of hard their in that's work And terms it's what pay What what that attention working out or following what forecast we in put to the players need. what's with a in to means quarter in the they we're the year. of kind honestly, year that down big of obviously, vaccine whether it's on just to is we're going on we relying forecast on the it really do, in the number needs, the But really, give what manufacturers

is it of out all of a we is In the of in guess And going of I countries. it terms half developing that's race long hit a terms as developing we're more to rolled as this think happen countries, as is mean, sort obviously getting a my human second something year. I that to way all vaccines the through And XXXX. way

that our technologies are on on. was forecasting out non-COVID which and To just will have will the applicability terms demand companies focused of but we what the partners of to So that rely that something the be And again, vaccines on first be. we everybody question, vaccines your future going vaccines, that's in in to is general.

very portfolio our work well that's of products development any think on. I suited to are vaccine going

vaccine I hollow historically been think in filtration technologies portfolio our has fiber used manufacturing.

extent So, or vector that vaccines. to the based viral more, mRNA based see we vaccines

think with work. that be of in I positioned development we're vaccine to upstream both our parts well able downstream to technologies operate and

Ram Selvaraju

side, there. Great. the two therapy then gene on questions And

with we I look CDMOS we what gene the forge for cited But this Clearly, at see we extent start to to the in solutions. any likely to that's Repligen gene developing future. therapy of and think have, of privately those And for entrants more you're the our to therapy as gene if CDMOS, stay try of that you of that the in offerings fact, customers you. any you of called your these of the research, compete we or impact specialized might on as businesses kind held if any entity you going to these the any and Firstly, that demand think Thank biologics. be secondly, it's in point their more complimentary product stay if think, potential then case Repligen, therapy therapy relationship emergence in future you then CDMO lane, space wondering, in on yours. see having in they're were future, at And competitors. potential gene seeing emerge, a point to being in going you're

Tony Hunt

out. plays your question. second to that know I how don't Yes,

you directly become, look really or that with working whether monoclonal I at, think, technology have gene historical its if tended to antibodies have aren't bioprocess examples of many who CDMOS developing therapy, on customers and players. drugs, data, it's CDMOS focus

know really I that don't again, So, But, think can past. plays what's future in how you I can't see the I out. don't, I the happened on predict that.

gene three, I gene Biologics, I And four when therapy XX% has In look the gene working like for close CDMOS think the Forge the to in space, space that of the terms been therapy. at have therapy been, of where about that would companies revenue say we you working CDMOS represented the Repligen we've years. have in last with

start therapy in if technologies manufacture, them to we last CDMO the five But jump to one and would I imagine look of position think over four the of at been would then or it growth see as another CDMOS have, would years. industry probably that drivers biggest industry other I our the else gene So, same everybody opportunity and we has way. in the

expect of to be So CDMOS the going that, addition fully is new as I viewed positive. only

Ram Selvaraju

then more last general And one question. just Okay.

and have long COVID-XX effectively you and view of If speaking, strategically think Do this, for you broadening capitalize for has as may impetus also applicability Repligen have customer would strategic or in perhaps that the to scope be general. base look can COVID-XX this down implications of point that that term. you COVID? that possibly opportunity transient to Or but in business how terms also other give on some you this fact, specifically even of look the the an pertains that therapeutics vaccines least this think therapeutics line in not created in with that the at and related at strategic possibly strengths expanding acquisitions you may of of the your may Repligen’s nature, segments as other have the do best COVID-XX, Repligen’s the vaccines, may for to future offerings to or anything related to and that directions certain landscape pursue potential given COVID-XX revenue don't specifically do are at you

of, kind sun And give helpful. of shines. would us any think You you know, to I understand the but that's kind that, can make hay loaded while be you're while able a I perspective question,

Tony Hunt

Yes, strategy and think play market. bioprocessing the I in don't around our changes how we compete

the of been, decided an internally M&A up done combination ourselves. we've from or develop new doing we've that M&A and products, the So whether come and few new ago, products that launching with something to come we've a years

company of of changes, I COVID respect So we M&A think importance overall importance the don't strategy the the about R&D. or of how to with the think

how being the the me, think and to our us front is, road. how offerings respect opportunity it for ability COVID on a with real the involved, terms of part can the To our most produce, huge sense purpose down to In company COVID. we and vaccines, and of have there's pride terms deliver, impact about in broaden important within a of these therapeutics. of

manufacturers, these and are companies, there companies, with, I vaccines And beyond we those relationships been whether worked other new the way with got we piece today, form out, COVID with because The opportunities CDMOS, future the on an many players we biotech going for we pharmaceutical that extend that rolled with will us. that what's are the opportunity that think the term, is have haven't before, relationships work expect relationship. and strong and, really a to that those that of is longer develop it's,

kind of it. that's So how we view

Operator

Our with next Couillard Brandon comes from Jefferies. question

Brandon Couillard

thanks. part Hey question Two for John.

maybe of the just expected three we that see share quarters? with in than would the the for ratable, necessarily more then margins front-end of gross the you Should maintaining leverage phasing the You perhaps year? of us that? assume terms Why next any kind in first quarter, just loaded or can XX% operating color it's on line? And COVID revenues over of balance we did guidance more the

Jon K. Snodgres

that I'll But guidance XX.X%. at quarter a Tony you're one. the one Yes, cover let held correct, to first we of the Yes, second great terms we gross XX% XX%. had margin. And in

got terms into facility that headcount, into investments You footprint terms expenses, P&L expenses of the added. have added meaningful of the of we coming in terms for depreciation in coming we've

what coming that we're end of the towards expect end, if expected that, really say, versus just align at this time. the those the I through we're start P&L. at revenue range, probably and the end when at to higher hit, the look that timing to edging things lower range, seeing. that's, that's with reflects So Essentially, would to we the with you that that mid in point high

So is some of moving that there up but movement, within kind just range right we're now.

Tony Hunt

on Yes, COVID it’s and the going probably spaced. the I on think evenly Brandon revenue to be

of just end high guidance you'll If you, out quarters. to if you XX and million few in see of take XX XX million our midpoint probably the million, next we're the the take on

Brandon Couillard

me. for it That's you. Thank

Operator

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

Tony Hunt

the up half year Thanks Great, August us up in you. bring catching when you we'll Look performance. to on everybody forward speed thank of joining to first to today. for the

everybody joining. So again, for thanks. Thanks,

Operator

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

You may now disconnect.

Repligen (RGEN) 4 May 212021 Q1 Earnings call transcript