RGEN - Earnings call transcript Q3 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Repligen Corporation's Third Quarter of 2021 Earnings Conference Call. My name is Anthony, and I will be your coordinator. Please note that there will be a question-and-answer session following the Company's formal remarks. In order to accommodate all individuals who wish to ask a question, there will be a limit of two questions at a time. [Operator Instructions] I would now like to turn the call over to your host for today's call, Sondra Newman, Head of Investor Relations for Repligen.

Sondra Newman

welcome listening and today. Anthony, you, to in everybody Thank and cover for ended On we'll highlights September financial XXXX. periods this call, nine-month business performance and the XX, three year to guidance provide our also updates for We'll the XXXX. financial Repligen's President our Snodgres questions. deliver will address Hunt report then CFO, and Jon our CEO, and Tony and

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

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

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

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

Anthony Hunt

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

in saw exceptional months The on for and we this we morning, global out $XX has integrating of from third last building since been another have and you workforce company. sequentially As release manufacturing increased in effort focused capacity our four million, outstanding our customers from first quarter, acquisitions up to team quarter on as QX. In press our nine our from and the year. COVID $XX QX revenue million delivered the

which up We strengthened executed the we also and number therapy had business, was stellar during the in as mAb expanded agreements of franchise. XX% a on both quarter accelerated. non-COVID-based and organically XX% account organic quarter, our year-to-date Proteins third gene growth for revenue Strategically, our that and

Cytiva, Protein signed out which XXXX. with supply a to we new agreement ligands First, A four-year extends

and complements launched developed and marketplace we the a with a And Navigo builds ligand and the finally, pH A falls sensitive and associated development, leading is affinity Next, with off new acquired partnership which Avitide, aggregation have and we antibodies. in Purolite Protein unique with Navigo. ligands player challenges discovery we for strategic in that

therapy overall of base revenue, programs. XX% terms COVID $XXX and by strength driven reach from XX% quarter, the growth where growth in organic In including to we business delivered million, gene standout was in the a growth

of nine our four first the quarter exceptional and franchises for growth accounted performance the with revenue of XXXX. all in delivering business and base XX% Our of points XX months through

where up to franchise business, our over As gene therapy continues of viral filtration XX% accounts. noted see within were adoption above, revenues strong our vector base

XX% on overall for have XX% programs half a added future expand, accounts in representing very in COVID range new in these leading full-year quarter of demand here of XX% for XXXX, XX gene the represented our to points QX of in year-to-date. more to now growth total we much indicator be which results, QX. customer revenue. third revenue a has positive we as revenue the very of COVID in In quarter. we a been gene growth and were the of XX%, Based expect revenues XX% gene therapy with therapy and than the addition, COVID to our XX base growth. consistent to our XX second and overall line expect continues see been therapy added

significant Finally, increase into year-to-date make XXXX, all acquisitions both over X%, as we represented made investments continue XXXX. expectations, and are and revenue third quarter capacity at to overall above our in in and head operational tracking to XXXX or we

the the COVID first to a through XX% represented up quarter, year. orders this front, XXX% the continue COVID strong we see nine order large customers with orders approximately over as the orders our year. On number of of for significant In next book of orders months momentum place

line now in year. much our that $XXX million we accounts and $XXX is for next revenues contribute over least Our company are order the for COVID COVID million XXXX with at will in expectations book very

very Our fibers columns. pre-packed ATF, with base again in OPUS were robust strength and business orders hollow ARTeSYN systems,

COVID in between revenue of $XXX $XXX the revenue to to million. in strength and XXXX orders performance, overall we finish $XXX million Given $XXX million million the and expect now with range

strong in bioprocessing. be in range Our technologies reflecting XX%, of our to the base core of business adoption the growth XX% should

Before some our closed XX. our results, of into and expansion September which acquisition jumping commentary Avitide, capacity most want programs recent on I on quarterly provide our to

with start let's So capacity.

online shipping QX, first significant customers shipped with During in late progress bioprocessing the membranes, now fiber and for out our additional supporting made modules the France, QX. In building we hollow company. fully is capacity Polymem producing

at of In as delivered OPUS September to column coming site to will in in drop more up able online the over expect customers customers XX products. in packing. European the pre-packed our resins over and to came Breda the where for our manufacturing customers Columns continue We have qualify Through our to XXXX, facility accepted OPUS QX, columns. EU the end to putting of European Breda for the QX Netherlands, a very be months ship in first formally Toulouse facility approved us facility and Breda were capacity ramp again, customers good the position for our

coming in Rancho over expect Finally, two capacity to Dominguez, and quarters, filtration the our Mass California sites Marlborough, significant add we to our franchises. support

our and as acquisition Moving in now it development our Avitide, affinity engine. businesses resin we've an to and we can is This gene discovery off one both expert discovery the where leverage And commercial Repligen for development. established the strategically ligand acquisition partnership into and of a affinity organization. moves strengthens solutions Navigo GmbH two, for it important expands Proteins and and builds very excellent Chromatography therapy, our ligand us with

into new more the differentiated building emerging Our goal months applications over can effectively is space to and within rapidly gene resin focus on vector our viral therapy the coming bioprocessing. in we portfolio compete of out launching products so affinity

outpacing broad-based. than XXXX. exceptionally business The and So quarter the earlier the QX were was strength to accounts The quarterly Order our was continued with compared up the moving accounts, quarter strong now again, XXX% non-COVID-based that story year-over-year. which COVID business performance. In of filtration COVID load growth strength more filtration, of noted demand. the in was to XX% doubled in third as our our non-COVID

benefits accounts, Our Lentivirus where gene of are ATF make some the yield. to and business real seeing AAV increased is beginning inroads therapy customers into

Flat vaccines than businesses Sheet in Fiber we demand Cross-Flow COVID for to and Cassette Our Hollow to more applications. continue the accelerated with as see TangenX adoption doubled robust quarter support along non-COVID

happy new progress. customer especially with our are We

we added Cassette business, example, our them in of third one XX gene Sheet therapy. Flat from For with approximately customers coming

perform to in automated drivers and which expect process for quarter single-use ARTeSYN we a of in XXXX. continues strong for important franchise Sheet growth series grow XXXX. launched Flat business performance, XXX% system QX with Cassette scale It business chromatography benchtop new now to our well a systems of expect Based filtration for demand market supporting on be was our we fully here our Finally, of to our at we strong us as products. an series us TangenX and systems,

Moving to chromatography.

quarter for gene OPUS continue implement column processes. and columns by through late driven an nice nine demand OPUS COVID our our in as therapy customers. customers stage business Our uptick to the first saw and We technology months pre-packed excellent a XX had

OPUS our facility. qualified Breda as We customers supply and almost of now resins, XX% XXXX from now is customer and coming are this columns. in And continue revenues to customers to facility shipments as transition have from again improve earlier, online. will This mentioned accepted

range For will in of XX% the chromatography grow the to XX%. we the year, anticipate franchise

business had growth factors. another Board strength Our outstanding with Proteins across in the and ligands quarter

new Protein We and pleased to A secured are proteins we We have Protein expect on launched to our by with A Navigo developed products Avitide. contract in and and market to pH long-term look with impact resins Cytiva XX% the ligands, XXXX. forward grow be developed high to the to here now XX% of

process accelerate Finally, to analytics our business SoloVPE adopt and FlowVPX. as continues customers

For XX% business the base, increasing new growth antibody almost in of [indiscernible]. quarter, an new of was from coming up the XX% and systems analytics accounting modalities customer therapy of approximately business We anticipate with monoclonal XXXX. gene the for accounts XX% with this growth again, Within XX% sold. the contributions our is for from the customers approximately coming

we and account about are turn outstanding So order financial non-COVID-based And in exceptional through and year. for We base. over consistent new demand XXXX look overall, you to the the our forward that, finish QX quarter on another business and had entering I our confident with the call strength strong COVID the in XXXX. in our our growth products in Jon to growth market, with continued we progress update. updating from With will

Jon Snodgres

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

As XXXX. earnings again third this record our the release of and delivered revenue morning, for we quarter growth shared in press strong

remainder to We intake supporting the robust see our also order outlook of for and XXXX into XXXX. continue

highlighted, our was Tony of contributing revenue XX% accelerate propelled and XX%. business growth COVID-related our to four up each points in by excellent overall performance base which business, of and The base acquisition revenue of As franchises. excludes to our year-over-year revenue, inorganic XX continues product strength

Our COVID to in continued third the revenue adding growth well program points perform also overall business XX quarter. to

Avitide drove acquisitions growth from Finally, the points our inorganic ARTeSYN, growth in XX period. of Polymem of XX% and of and the EMT, XXXX our acquisitions NMS XXXX and

our our well focus encompassing to new in During our off integrating project Hopkinton and Phase continued on NMS our business, our expansion of quarter, capacity also kicked We've acquisitions. sales and and offices as acquisitions XXXX Indian our global the as facility. Polymem of Korean third implementation completing our addition SAP startup Avitide, operational X

expand we've commercial operating manufacturing, to our On front, continued R&D, and the hiring infrastructure.

year-end from lead critical Over the XXXX, growth for These approximately XXX the of added investments of focus driving on supporting we lines to increase are our quarters all customers times rapid and our supporting we team, products. across our XX% XXXX. individuals down product three as a our to

quarter third $XXX.X our XX% of to XXXX, generated XXXX revenue and representing shifting million quarter growth XX%. our commentary. of growth Now third in the organic revenue of topline, On reported of record we

earlier, XX% tailwind our from foreign growth XX XXXX and of included revenue COVID XX% is revenue, inorganic revenues business, base and mentioned figures reported one total revenue acquisitions acquisition programs reported plus exchange. XXXX about of Overall, representing points quarter in of As from third X%. approximately include our our our representing inorganic representing point

product expansion see our we first XXXX. quarters order franchises our continue In greater quarter, of the to each revenue addition through overall strength of overall with strong than in XXX% the three of bookings in to

and to American distribution growth quarter revenue relates and with represented third positive Europe of of of quarter in our in a of for all our represented strong Relating XX%. than of represented the three to it our XXX% traction direct XX%. XXX%, our continues sustained Rest Revenues XX%, greater America Asia products XXXX the global than North performance Europe its As XX% Asia and XXXX, region World regional greater the regional for revenue each from regions. were North growth nearly up products, revenue third direct our expanded

income statement. our down Now moving

ramp Third which leverage, period point equipment to reflects to gross to third compared $XXX.X our XX.X% or same compared expansion and increase depreciation million to and tied margin XXXX gross adjusted XX% of offset XX volume $XX.X of in XXXX. headcount facilities, million, was quarter profit majority of XXXX. benefits finished an positive The quarter quarter from investments XX% third the the by the Adjusted of basis infrastructure initiatives. capacity in from the improvement at

million $X.X third Next, compared in to the down we'll P&L Adjusted quarter adjusted the increased to $X.X million development to expenses. transition of research the XXXX. in operating XXXX of quarter and expenses third

notably FlowVPX we year, this spectrum, XCell far pH new flat through So affinity innovative our systems lab-scale and chromatography filtration high most ARTeSYN ATF systems several technology, through sheet have ligand. controller, our products, launched

related million for quarter expenses expansion of quarter. of the growth increased seeing The a to increased of revenue investments XXXX the SG&A third significant third to or million on compared XXXX Our acquisitions or SG&A for the $XX.X of to XX.X% facility plus revenue XX.X% was to $XX.X XXXX and dollar business. are basis our continuing and we in in personnel the XXXX our support timing spend

$XX Now or EPS. in quarter in and quarter, third XXX%. of $XX.X the the shifting XXXX prior operating to third year versus earnings of million an million million $XX.X adjusted income was Adjusted reported increase

margin to XX.X% our XXXX operating the expansion the adjusted reflects the operating XX%, business. quarter overall of third of strong quarter margin Adjusted volume XXX an leverage impact in compared Third improvement third points on quarter. in XXXX of basis was

XXXX million compared share increase $XX.X to period, XXXX of Adjusted in quarter in or $XX.X the million XX%. XXXX third income EPS in of per of XXX% $X.XX adjusted quarter. the quarter $X.XX $X.XX net XXXX or the increase Third an an million, was fully diluted compared increased to to $XX.X

$XXX cash quarter cash and on acquisitions million which to and cash our totaled guidance. full-year impacts are from Our related equivalents, our move third reflects and September XXXX Polymem metrics expenses. XX, GAAP the now We'll XXXX and at Avitide

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

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

to margin adjusted XX% We our previous gross are maintaining our XXXX guidance consistent with at guidance. XX%

are related three revenue to expense, realized of year. $X million the adjusted and income of range increasing at the to and million XX% range We points by $X guidance from million for exchange expense operating the are operating our of to foreign other basis transactional adjusted midpoint respect our guidance by mostly of prior our million adjusted XXXX. raising increasing XX% With end we to income first $XX.X the of to a $XXX range to margin XXX million in of exposure $XXX to lower quarters

full-year an expect tax approximately of quarter adjusted and for which pre-tax adjusted adjusted fourth be income. to assumes modest the of impact of the XX% transactions, to year. XXXX, This we to not consider potential be the for expect XXXX the employee of expense additional XX% remainder guidance continue We rate does of stock income tax

by million, at to boosting and raising income $XXX net full-year to range our share. of are we per XXXX $X.XX diluted at expectation expectations to by million $XXX million $X.XX EPS adjusted a our to $X.XX $X.X midpoint midpoint fully adjusted We for are

outstanding fully expense year. weighted Our reflect average estimated an the adjusted continues $XX diluted shares to for EPS million

Avitide by million and expect be operator $XX of operations. our amortization $XX.X expected continued investments. XXXX the the expenses adjusted with back XXXX depreciation midpoint million by completes to $XX is to capital approximately respectively. range million I at and million in expects of to questions. for key CapEx expenditures million This into lines intangible company invest guidance. from capacity generation with for includes being million previous $XXX range to and $XX.X and equivalents, funded in million The and now be information guidance $XXX initiatives cash cash of impacts GAAP a Inclusive to with EBITDA full-year fully And being paid compensation the consistent investments open turn Our increased our system our metric and financial our of quarter million acquisitions, Polymem $XXX our will call update. third to cash to the the This range report year-end we $XXX to expansion

Operator

Our first comes Arias question-and-answer begin session. from Dan We Instructions] [Operator with the will Stifel. question now

You may go ahead.

Daniel Arias

space new equation growth like big you Good for couple there? you be the working that its through spending gene And a part the obviously Tony, expand on a of is part Thanks ongoing. or demand are quarters bit are next pretty Do patterns sounds way for for of It safety but just is on morning, sort guys. think just customers the questions that meaningful therapy, can acceleration. that little will in substantial the in a then XX% questions. there, general? drivers all of at or

Anthony Hunt

Yes.

therapy I the commercial last in doing for customers and are to a that to been more fact really – our think we nine has organization, the able get benefited out technologies six We're field demonstrate months. trials. applications really that lot the We're teams the with the from gene have. have

good really I think of we products. portfolio have a

I think it's just adding up. all

I this resulted that we first liked, and progress a and quarter see QX. lighter of half probably think second the would've year we nice of or really but was making in really year we're little last two than can that's

be would of strong gene a year. the at the ahead a bit little therapy, we probably thought and where overall finish think the we year I of to beginning

Daniel Arias

just I'm industry you've ongoing over sure – see but second, unique, not Okay. all view assume unique just certainly issues the how you or on view to what's the at in on ask a and that I spending that you I affecting got insightful going just on pretty are year And just – so? next an yes, the there, maybe the if

Anthony Hunt

Yes.

I same bioprocessing is the in industry whole the think spot.

of each on in that's making trials happening can is The we're think I are the gene year of there. gives more you we're industry – activity sense You customers – just more a I adding There fact XX see think that going or making clinical – lot progress. marketplace. quarter the in the a progress in the out therapy

So getting approved. to we slowed I drugs need see it's think down. more Clearly, don't

think through, that'll I positive for those approvals the come as of tailwind a think I be industry. sort

So we're to for of with be lot continue to in us applications industry that a it's the of for our people, in general market the not work for concerned. There's field a commercial lot field foreseeable and think activity grow and we bioprocessing done, the and will a out future.

Daniel Arias

Yes.

pace then the for maybe there that XXXX to so order year. or see then of feels capacity just entirety much million mean, I book about have And the you we to shifting $XXX year COVID-related Can Okay. on looking the the as for like talk you're next revenues. next quarters? couple by pretty next end booked the and you on year you're how across of the look the of it the at

Anthony Hunt

or million. of question, a $XXX expecting I'm year. next XXXX But Dan, smiling no May of because look, I maybe we've at over the clearly, even February was the end

right. You're

orders by of placed $XXX towards the of by up year. significant amount million some of that biggest this mark customers our in to tracking was There We’re end a QX. getting

and orders percent other big in the half really of order placed QX. some probably that have placing four you when and these it into COVID, our Others reflects players the from of quarters. year look for So orders for first of at that was quarters higher book and than coming came the

the we will So players hit the months we at nine year, end have honestly by XX expect placed orders. their of of least if that time not most the of big the months

of we phenomenal job last by effort months. are a as a out can. capacity mean, I So We've it’s in done XX huge over we of as terms working the hard team. operations building capacity, the

to capacity of have build-out another year go. We

guidance, until think You really curve. demand to to We're we're we'll staying as I'm drive it we see ahead into times can And get down XXXX. the any our But further and XXXX in CapEx refrain but comments even of what and into from see we finish happens. I talk on making XXXX going lead about XXXX spend. working we XXXX

Operator

from comes with question JPMorgan. next Qin Our Julia

ahead. go may You

Julia Qin

Hi, that XXXX, good touch you want quarter. launch? to Could commercial about Congrats said release I the press just AAV in XXXX. morning. Avitide on acquisition. on resin talk I think you of the the timing specific

think the And is So we you for more specific guidance issued And $XX of as that be revenue you included the new can that then regarding launch XXXX? wondering the timing. in if that benefit million like what that of content, going kind about the incremental in AAV thinking we about should revenue – column synergy does proprietary OPUS of synergy be sales form forward? from resin what that

Anthony Hunt

Okay. Julia. Thanks,

in on that. I the the of products, will of launched. done expect Avitide we year, the work quarter terms think first – and of products of the they've and get products next so the resins, launch of those Really a majority already number

that's our the in really definitely products, We timing. of in form able here of really QX. it'll customers to again, terms revenue plan, the access package QX. OPUS AAV guidance to revenue not a launching it's $XX might And year. It's huge be columns. for early be think would for of in be course, into But get next I synergy. different the And million So resins

customers. the from manufacturing actually is have think process columns, customers, that we customers of customers factor easier simplify the amount we're the just leveraging for that it but to we It think think easier massive a convenience makes It for will the more tools convenience significant. I evaluate. makes for revenue – I OPUS but a it's And it's to not it for to come really implement. not

Julia Qin

does the it. previously I million. which content about we much capture the like value could the share And rate it's you total acquisition? the how of about give us pinned mean, that helpful. of attach thinking we are your column like for kind a That's of chromatography you sense then $XXX as content broader, this And expand chromatography how Got of content think ownership that aiming strategy, you long-term now should TAM, now about? think chromatography, you us resin with a versus can that of is be there help

Anthony Hunt

Yes.

most for chromatography is in TAM around our So pre-packed part really the piece. the columns

launch have today. We resin we products business, start over the said, market, small not a that's it's next, very say going that one very, into to But resin have two application therapy multi-billion play we're and in intent. hey, multi-billion dollar definitely out chromatography gone gene when where areas, years, and tap other our that so the dollar we market whether to or we – into it's chromatography into that's to

If and you but business business, the the the about of chromatography, as our well, part obviously ligands they're Proteins very which ligands and the factor related. growth business Proteins is think

a partnership Cytiva, Navigo. we're and our players, that content closely very we three lot Protein now, right, So A right a through content with and we of strategy is have Millipore and that that's coming the is with ligand generating we Purolite, have really collaboration differentiated work strategy the highly and

A going We as will we content for those based non-Protein in sell like our affinity launched they application. expect will us, new commercial but we organization, not products only resins, to that be resins through become but provider a Avitide is

the and think will increase. TAM the opening and be chromatography And So Repligen that's we yes, bigger up will market therefore strategy. I a for

Julia Qin

sounds or your no And point, resin. Cytiva existing Was on with there's Got your other just partners, overlap last relationship it really it. or resin it like right? confirm Purolite to with

Anthony Hunt

with with No. and an relationship obviously the around that Cytiva, would is whole There a I make. Purolite relationship Millipore and of that ligands generate lot interaction look respect Protein exclusive mean, we we A our relationships have isn't – the overlap. with really to

one about So on be Avitide and the about opportunities other would see in this A, we marketplace play the of affinity we Protein like that is players. it's not to

Julia Qin

That's great. Thank you.

Operator

comes question Puneet next Leerink. SVB Souda with Our from

go You may now ahead.

Puneet Souda

Tony. the Hi, Yes. question. for Thanks

COVID of – vaccines expect guide $XXX component versus a next least in it on this wanted is for you first clarification point? versus to that terms III at vaccine the commercial of largely were the just Phase million II sort at be of that, just in So potentially to and one component understand year, the as vaccines therapeutics commercial do that so of

Anthony Hunt

we sense are late players side, I of some would think commercial the the would it of therapeutic commercial. or Yes, But other either what do. be on they're vaccines. stage Obviously, majority The be where from forecasting. we majority have who coming

Puneet Souda

Got it.

Okay. supply And that, the the in more across are supply question times hearing across around we things in as components a and and electronics lead – the on some concerns questions then sectors. reagents chains obviously inflations being well. like there obviously chains. Obviously, And multiple

product been how to the overall you as potentially seeing you on quite that since give they've a that you wanted your know chain I in lead terms the pass supply well from cost impacted commented you could current of of it's for just a just you, obviously any us So you then increases to to COVID first of then. bit, lead times, can view and are what manufacturing but improved? sense improving get in – if And of all, a times as customers? suppliers overall, from sort

Anthony Hunt

Yes.

times. So let's start on the lead

So bioprocessing buildings investment online adding strategy all in investing. clearly, all equipment. other putting new or people. Major the our major line. We're of in no We're is bringing different We're CapEx, player. than in and strategy investments any

We're position a the terms of that what were stages year. So executing that. We're doing same at in do going different on we everybody is of to everybody good beginning and phases thing, the we build-out. in of said is at the

we the really wanted was Polymem where of helped the to think acquisition has important accelerating hollow in very I That be fiber really terms portfolio. us with to us.

bring for being XX,XXX projects one operations Marlborough in team Also, to is capital on building is next right we're we're Rancho. track. on by that the other out our which working again is Big us The feet. driven on facility, that's year square obviously

are two important. those really So

don't of we customers help to saw cross that the again, with shipment have OPUS of ocean You terms done our we've will because European times resins. in the what do lead

So our to portfolio. progress, good again, lead steady think expect I we're XXXX, and our across continue times progress I whole will down making come

anything suppliers, materials customers so a in was always quarterly time. or anyone no In our and of of and think we make doing lead products we're it's all I than supply the have trying terms where on you QX to ship than different on amount the spots chain different don't on QX. QX but times from QX in challenges it to in right basis, hand, can There's else. get We're raw monthly,

So we're working through that.

see of In We as know expect up gone materials terms inflation, raw that have gone up. see we in wage increases have terms but pricing, definitely well. to of

So a that get made yet. going we we'll is haven't to into that be next strategy going for our year, but bit what there's on little products, when our see, of to definitely then pricing And on. final we look decisions

Puneet Souda

it. Got

Jon Snodgres

and we houses, providers think lot certain do have the probably be from contracts, so up protection resin three of have a have some protection pushing the supply But we those. under five-year suppliers do I will on that pricing. we pricing

to next said, Tony to that couple we looking of here how respond months So we'll at be as that. over see the

Puneet Souda

among customers in few broad sort PATs these we be PATs the Okay. technologies look overall where FlowVPX the one, type Super last the you then of penetration? broadly the overall, are performing of – of significance FlowVPE, we the how could at of and seeing and – more overall Where do When in think you with and the we of years? and to stand CTech and appreciation speaking, PAT. technologies, do helpful. next market the recognition with the as in And with just CTech, it's terms question Tony, on the what

Anthony Hunt

Yes. are innings. for early I would PAT the really looking is complex readouts the for in that more say, customers

a are that think I companies offline, There's have inline. lot that at-line. very of doing few implemented really

I of real monitor a concentration think can is the product you drug your like that advantage FlowVPX inline.

really the that with forward I end think said clinical earnings one implementation. I call we pushing had of customer at I the is XXXX, think the at last who

a in thinking this clinical I of had through half setting. a year, that I XX, on working and ago, think first think implementing customers over quarter XX were we

gives and think on little for sites happen. last highly So differentiating think that's sort a – there here a customers. bullish that restrictions driver people while, general PAT in the in a idea didn't We're PAT with do bit, year was really in I think ramp. industry real our this was you We do XXXX. value big push, that the I up slow getting to think technology. an I of on And it's year evaluations ramped the into it's for of quite very down of was the XXXX the

think PAT implemented, customers seeing think going I needed I in and the later, finally to products that of really implement we're through XX industry. other come it's you're monitoring. getting see that So will to want inline and years implementation And plenty do to

Puneet Souda

Thank right. interesting. great. Okay. That's Very you. All

Operator

Johnson next with Our comes question from Jacob Stephens.

You may now go ahead.

Jacob Johnson

everybody. Cytiva Hey. Tony, on Proteins, the renewed you first Good morning, you Maybe agreement. just as highlighted

Proteins long-term franchise rate You've growth of and you got think line more XX% have for about now Is the with maybe should it overall? the Navigo, target Purolite XX% going growth in to kind forward? partnership, the you the we How Avitide.

Anthony Hunt

Jacob. a great question, Yes. It’s

in a Obviously, total the bit on few of driven you minimums, goes depends growth have in percent on contract, was new little the not challenge before giving next the markets. years. long-term a this think as we I by mentioned terms where Cytiva by of really

for – then good. and Cytiva typing, gives could us really stop forecasts their XXXX would be someone it as So

into business off, balance growth goes Cytiva So insight XXXX it. little we're get the and a To in we'll that way then happy and is in that XXXX, more factor going. with our XXXX bit really where

driver happy with and that double-digit So Purolite done. the has commercialization the and we've a A with NGL-Impact progress us. made for really work the We're that's growth

new good starts which So in with us. driver is high pH, or that's is the year like we've very launched resin a We then really put the for next Purolite’s been new real think speed, base Avitide on in I to marketplace. to products. their that And unique that ligand the come

drive where at around the and new of and that proteins really So success of we I end in XXXX. XXXX products it's the growth products new XXXX are think will for with those

Jacob Johnson

Thanks, it. Got Tony.

the Sorry the about typing [indiscernible]. AirPods in

Anthony Hunt

Sorry about that.

Jacob Johnson

from all deserve lot that. been There's a of no, investors. I Yes, good. talk

does couple opportunity largest the how we I of next clinical recently guess commercial could I shift and one towards maybe that about just out the you mix kind is, or vary your you that the commercial is across years, think question there. ahead? what And product about look segments? as looking all segments see mix lines your mix

Anthony Hunt

at We've and clinical year. end last, our that commercial months. split back the rerun this way. really this of split We go conversation investors a had six changes COVID to Yes. Obviously, I three big think the over with to the number need say in of

would and clinical So in all have COVID. off product started for probably that almost portfolio, you non-COVID our look every I that at products, early we phases. our the we'll they filtration in when it run say

at look acquisitions drugs, very of the the for were that done we but them commercial pipelines. implementations you they had had acquisitions nice did, few – so If when

And so the been up. building we've pipeline

– those the but plus years more two are over clinical, we last dominated more by more commercial definitely we're So have lot successes. businesses seen a

We'll the commercial. end timeframe, run bit how color fast we of we'll to little – clinical and be is goes February we probably at get the the from on year. ramp able So think a split when this that what into the to we'll add more numbers

Jacob Johnson

Tony. it. taking Got question, for Thanks the

Anthony Hunt

No problem. Thanks, Jacob.

Operator

KeyBanc. next Our comes with from question Paul Knight

may You ahead. go now

Paul Knight

chain others time? there with are a you these shared competitors meeting that in Tony. shortage some it, for, market, other meet When supply call times Hey, the a or with you if short time? product, question are you promising like the turnaround of offer possibilities customer hollow that you like in gain let's see is maybe in are long specked super fast time? demand quick a [indiscernible] some turnaround into that fiber, turnaround there So this are because I customer's And

Anthony Hunt

Yes.

all relative, its think I Paul.

I competitors. think if obviously to of to you so some or make the we smaller than compare we're a volumes have are a Sartorius smaller, our a Cytiva or Thermo us,

I they piece. other where share have times everybody products where lead and they they think lead is definitely but are time time, the shorter reduce to working for their opportunities have lead There gain. products great in everybody portfolio has would prefer have to

as I think focused that well. everybody on is

a down. times, product we – Sartorius very through driving Cytiva push We Repligen our our well. you to product, and best-in-class times focused goal have And XXXX Sartorius and customers picked as have on to definitely this lead lines. Cytiva some or switch as to up that for you're a our with But product, would some can lead go us, some gain across you we're or to where if be share definitely if year of product. So get you're

Paul Knight

customers to you of Are product you're are with with able your line broader a more set offering comprehensive now at point products, now with you offerings? lineup what is gain a a where of

Anthony Hunt

Yes.

else, mean, somewhat said I think question, the look at is like are. I last it everything to we I as relative.

broader, factors. were clearly you all could XXXX, had in on ATF If took have when OPUS, A, back a now. about remember CEO, We when growth talk and the much talk over chatting we that we deeper We'd about like Protein products two products. we talk three same we about as talk portfolio I

connect a we of validates And it dots the of operations, this we've jump resulted a more company We've through talent the think nice us. attract I has our in would to gene that that outcome COVID. say from on opportunities You for ability really And been invested kind the think own unit we've the mean, R&D of in has XX% or Repligen waves I win with revenues coming our have. which been to through we And to therapy, products definitely come good able up M&A either COVID, picked through. I that lot to for broader can the portfolio. start of that into I because have makes technologies which COVID between our

we value it that I think shows what So do. people

we technology can fair and opportunities therefore have the We to new jump share. in our on market differentiated and win

Paul Knight

you. Thank

Operator

Our next from Christine with comes question William Blair. Rains

You may now go ahead.

Christine Rains

a maybe morning, quarter. that was interesting on color Polymem. previously is My first around just hoping congrats some Good on again and I question timing. innovation could give Hi. really you've and expand there's I there. the this know you of mentioned opportunity great centered on lot

Anthony Hunt

Yes.

a I number you when Polymem, Christine, over bring with advantages – So a first the been to working think they for at we've you them Repligen. of look look well year. Obviously, when at one,

expand product And to Polymem our my done so working phenomenal said since remarks job scale, of that our from fiber shipping as And I us. they've prepared in with QX. business, hollow a ability we're

that have technology of in we over There a for lot So that's developed have going bioprocessing. around applications That's years up. and been to ramp a XX great. company is have think also they that

the asset to those, be and in that versus core going going we modules out the of Polymem details expect to not hollow I'm Polymem able own an and So go of will through make faster products we but better Repligen membranes is to alone. because competency fiber

Christine Rains

second Great. a That's really picture question have helpful. the is more And big of I then question.

So term just that longer growing? bioprocessing how ex-COVID your see latest you and on industry thoughts

Anthony Hunt

Yes.

somewhere change, over I basis. XX to in will delivered, an it's expect market right. between that been and years don't a I've bioprocessing industry prior annual that would growth an has in COVID So say that for I on X% consistently and XX%

market to XX% post-COVID don't two definitely in. part anything that COVID-based And going whether we non-COVID world part work at us of COVID, is marketplace. the the will expect the that last but going it four we're or they're whatever going players a of the think all low-end for can non-COVID the years in portfolio. from believe the core XX%, in the type other a – suggest be that is, Repligen over in of still XX% range, see it's years, to healthy, bioprocessing see our non-COVID some for we're growth. of to part as And market citing And we the so, XX%, all that's years, for through growth I that COVID slowdown healthy years, I see all be is growth to really for to to market. business on still we years, three you week great

Christine Rains

the for color Thanks Great. there.

Operator

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

may go ahead. You now

Matthew Hewitt

Thank for Maybe the quarter. you as others and a couple me. taking strong for questions the said, just on have congratulations

to the related revenue synergies acquisition. did ARTeSYN include originally, any guidance the First off, not

the something getting you through the starting that that Or year? end some are expect Now you of next year, that? see from we're closer to to pull is

Anthony Hunt

there's ARTeSYN, interwoven obviously that businesses that we now. with right On much have so the Yes. is

did we that paths acquisition, the of a the last is drive about of part success think VMT Systems. you the single-use year, ARTeSYN a that if So flow critical making

think have really Prior configurable, now kind base and skids. model. that I next a ARTeSYN lot was to chromatography the synergies builds custom now it definitely of skid flexibility, launch of be shop, Repligen standard right, to the a off and filtration acquiring most going gives beginning a develop a mattered customers right but and we that's we're made the skids of more of to year of because format into ARTeSYN, more

to So through. those products are starting come

our flat where same sheet talked up the I my just up of that's our As doing coming on thing about be OPUS prepared with in with not match filtration OPUS next and cassettes year really and will columns, be most TFF the matches the it'll synergies up from we'll and remarks our with chromatography, Avitide because nicely columns. side resins that's

track terms year said what ARTeSYN with play but role for synergies, this we to would do things XXXX. of right in in we of we're those begin revenue on a All to

Matthew Hewitt

as on candidates companies of turnover. number quality qualified you situation, success talent. but some helpful. last they're year, Thank prepared having this through obviously finding talking having bit very remarks, of I acquisitions, either you've approximately but those maybe And added clearly curious, one And that they're some I've challenges you. you a of look coming current I'm your already and you're at the or XXX you said touched about on this earlier one, the That's then employees seeing think little or a finding in had

it's some losses. backfilling more So

you a look we where sitting, about out little maybe and to Thank as you. expectations could environment hiring bit If talk year? next your you the

Anthony Hunt

Yes.

to a at of some you people we're but look I think percentages are mean, other what in hire versus Matt. its doing. trying industry, not bigger what our all players we're relative, percent, the percent, obviously of I a if

those the which, as A other heads, Everybody in is workforce. players nothing lot to right about XXX are include what to trying of talent. the it trying doing. all for, a versus into same doing get we're company. of magic any but honestly said, is boat. the lot There's the hourly of looking what So obviously we're in the talent hire M&A, what We're you all we’re

building right really doing. our factories that's schedule, right the been number people, the just shifts part So with out a big of of what we've

Matthew Hewitt

Thank Great. you. Understood.

Operator

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

may go now ahead. You

Raghuram Selvaraju

much. so Thanks Can me? you hear

Anthony Hunt

we Yes, can. Hi, Ram.

Raghuram Selvaraju

congrats, impressive a quarter. And on course, of very

think respect particular therapy therapy see gene whether some you elaborate on with category firstly, a to could I I from of wondering if earlier following So on your of was discussion, gene you the opportunities gene medicines contributing for in as to in an outsized therapies this or other of growth classes look a business potential significant growth you manner going at relative Repligen forward?

Anthony Hunt

of Yes. at that look with. therapy, you'd I we're base think the I gene when dealing say look that, at would broad we Ram, customers

with We're all that gene We working CDMO. every working with doing the therapy manufacturing. are own their are companies

on been the side. really has focus viral vector Our

lenti AAV, maturing industry slowly. is the obviously obviously, plasmids, So

that the So that. the position give that that those sure yield products example, to right we serving in think is especially medicine not say viral do to one our out now for in arm the best customers a do, call manufacturing that around and can we that's increased bet, a making We're things vector this and biggest really of we're space.

– I comment growth. expert So will drivers am We really we future that's do which on to think at. an kind of don't we're do nor medicines be of where comment I

at it leave that. I'll So

Raghuram Selvaraju

that Repligen that sort the the with interface cell between addition ex-vivo being gene viral therapy, of like cell therapy things gene? context to to vector potential for of so developed maybe you and opportunity in think respect there is Do segment in kind of the that

Anthony Hunt

We Yes. a lot honestly area. in of that our focused time

for viral obviously and are our we need if play plasmids been So or that exactly customers but to I those in vector have do, I we most see can space, what think filtration would products, honestly trying the to think chromatography and products has focus part. need they

Raghuram Selvaraju

beyond in you going of not comment emerging for with respect then market level was significantly dynamics degree like there's could these have growth given rate And countries of COVID-XX, to the to vaccination just regions if to vaccine which left some expectations significant with implications to but lagging wondering it might to rates, just Okay. I forward come looks respect XXXX, Repligen's because this the lower with emerging secondly, volume commercial respect been vaccination sales. still significant on countries respect with to what developed have

that you what COVID implications could comment may just I Thanks. for if that, have business? wondering So was Repligen's on

Anthony Hunt

we Ram, all same we to here Yes. volumes want that the we're vaccine press, I same the us everybody manufacture is the customers way see COVID our we say, to – all demand reports, the view would do. read

penetration with a making that who going of They're So rate in they we're are worried countries about emerging vaccines. some of high people have to rates. commercial were the the unvaccinated working increase handful how

So look, orders great year. react and seeing next – placed we out to into that's need, nine that I as volume already – more industry. months and that's are months I earlier, for the the we great great, that's if it's already Repligen, increases, to said for our But we're think XX

and You companies spoke targeting And that in got demand you about to believe just of can profile. are what their change. probably exactly course that included those

say profiles the to comes to hitting customers that having I variant demand the new that coming conversations can have you they're through, shots a that hit. we're could but us our asking have booster would we – You and and with the through, react

Raghuram Selvaraju

Thank much. very you

Anthony Hunt

No problem.

Operator

[Operator Exane Solvet Instructions] comes with question BNP Our next Hugo from Paribas.

ahead. go now may You

Hugo Solvet

to question on able and one side, agreement to quick preparing will and you you're bit us print. go as congrats you Can on you for be for taking maybe here discuss sectors. the or for the the Thanks of potentially the take a indications growth the follow-up margins. on maybe upside clients. two new Millipore over potential give And Hi. on Three my and commercialization see guys or

QX. Your it the margins been guide basis plays lower down the you a full-year for step XXXX XXX updated, that historically about margin for has points. But in in significant QX

about XXXX margin and seminars given acceleration margin to a leverage. level of expecting Are next of chance up that just year, keep to on capacity the guys at just underlying you thinking market So the specific the the heading the there are are taking into year? increased growth since margins have should XXXX wondering, Thank you. strengths, the competitors in we COVID some question, and the drivers mind beginning that here strengths given and

Anthony Hunt

Hugo. Yes. Thanks,

On takes which some side, to really we the back with relationship Sigma, Millipore the MilliporeSigma really started XXXX.

decision that's the pretty to growth the year supply make business have growth factor to this last factor in-house happened. Repligen. much transition Really very getting that customers to the by did year with we were middle worked transitioned we of the bringing to going over and So transition through MilliporeSigma customers across all we've closely

product So know fronts. a little a on of interact the we like own nothing it's controlling more multiple them obviously our that, And we on customers, destiny bit with factor. beyond line growth just

to margins think the a say for we hand for are I through margin. us. QX, I QX talk I'll we'll talk talk we margins going where in in to XXXX over February So would that's think about I'll it timeframe, Jon positive the but hit Jon the but let be through when XXXX,

Jon Snodgres

Yes.

the XX.X%, range. So margin and we the year around came the second levels, to the of we in can half quarter be start had we guided gross with that to in right

So I think we're to pretty expected. close we what

that's is slower the areas other a simply to. we harder perspective, in hiring and – infrastructure in pace our we because came little originally roles than in we of our bit various planned and filling And margin had then a On forecast. R&D we bit operating commercial had put

of roll a into jobs. number fill we as So QX, we're to expecting those

reduction number that if those the you XXXX and to going is the quarter. up. relation you at We really for to point the that of expansion to you're to in see right out people we XXXX fourth yet to start, We'll periods. puts at when a made have look But a that expect to into have the gross say want even positions there in coming driving to for what that's overall operating factoring XXXX. we operating guidance lower margin that for filled, don't us and margin in us I'd obviously and see really commitments then And a full-year in guys XXXX, we guidance be put theme or that now talked probably February our margin that starting

to you expect not as would guys model XXXX. to start I that So be an increase

Hugo Solvet

very much. you Thank

Operator

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

Anthony Hunt

Great.

thank with again. everybody today. We to Just everybody like forward to catching And look February. for joining us thanks, up in

Operator

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

You may disconnect. now

Repligen (RGEN) 28 Oct 212021 Q3 Earnings call transcript