RGEN - Earnings call transcript Q1 2024

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Operator

Good day, ladies and gentlemen, and welcome to Repligen Corporation's First Quarter 2024 Earnings Conference Call. My name is Keith, and I will be your coordinator today. [Operator Instructions] Please note this event is being recorded. I would now like to turn the call over to your host for today's call, Sondra Newman, Head of Investor Relations. Please go ahead, ma'am.

Sondra Newman

welcome first and report. of operator, you, to quarter our XXXX Thank and guidance this business period the XXXX, cover we ending provide and XX, On will for highlights call, the for year. financial performance March will financial X-month

Repligen's the Jason our our Commercial are and Loulo. Tony Officer, Hunt; Joining us Olivier today CEO, on Chief call CFO, Garland;

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

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

our income, from earnings other expenses, SG&A, net operating margin; margin, we and as which effective and include financial posted guidance, pretax as otherwise sales, per well non-GAAP morning, which to results revenue, Reconciliations share Repligen's tax operating providing and diluted and EBITDA, rate, alternative income adjusted gross and revenue, following: COVID profit book-to-bill income, of income, this but the figures operations R&D gross unless report organic GAAP including website measures, press reflect Adjusted operations. to ratios, an growth, intended today's are to included financial be adjusted measures as the of adjusted to sec.gov. not cost we and business excludes on M&A, and in GAAP performance best revenue in base non-GAAP of ongoing EBITDA are are issued financial this viewed During non-COVID noted. measures the call, should EBITDA that non-GAAP release is margins. These

over Hunt. let turn call the Now me to Tony

Anthony Hunt

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

you this of in are on $XXX year-on-year morning, line of satisfied solid X and With with release quarter delivering and in past quarter QX in a the a comps of expectations, at track the X.XX results, first in in revenue in our coming were $XXX to half our with the right in to the orders. Orders months. We're million, resulting first saw and As we revenues $XXX on known Proteins and book-to-bill in tough over sequential in press light delivered headwinds XXXX. million these we X.XX especially first China. COVID million

of as play COVID-related we anticipate headwinds none During XXXX, the in first last quarter which saw $XX we million we out million year realized quarter. $XX you XXXX, first Proteins with our up during which was on revenue, recurring. shared And we of of the February call, over

us behind confident recovery Importantly, we the the in for see market challenges the and part. are continue destocking feel to of most signs that

Our confidence new consumables in are what momentum. is modality performance, seeing reinforced we filtration by demand and

In in XX% was than up revenue filtration up filtration, year-on-year our and XX%. by orders franchise, largest QX, non-COVID more were

uptick than sequential saw in We revenue also a nice greater filtration of XX%. non-COVID

in the where demand pronounced, a consumable outside most we've Regarding has seen of been destocking uptick orders Proteins. positive

strength area than these both and quarter accounts from by orders consumable both sequentially orders at and more and XX%, another Both year-on-year. of first new the were year-on-year. higher levels XXXX, of increased For modality sequentially sales

XX% orders to quarter compared X%. modality of was New the of quarter and first revenue XXXX, first XXXX growth up than were in the greater

reported across the capital equipment While purchase by Proteins in industry. weakness offset these as aforementioned encouraging, positives constraints and were the

we as for through improve trends Our go guidance XXXX. expectation is the revenue year half, markets with the range so in unchanged and order stronger that second will is

down overall $XX XX% quarter, COVID-related revenues driven year-on-year, our in the million For $XX primarily or revenue. were million by decline the

down the approximate partially X% offset down business anticipated Protein which had were more as in first by approximately Proteins filtration an revenues our offset were sales than ATF in quarter, Within and a strong was XX% in reflecting quarter. Overall, the decline Our by our year-on-year. for were flat non-COVID orders very orders XX% base increase business expected demand. filtration franchises,

in and order our you with period. Overall, franchises XX% from up up reported the half observed when pharma consistent sequentially. On covering the with than a were prior greater what performance were orders as year-on-year orders to were non-COVID chromatography and proteins. the X dollars X% down CDMO up months' and in and line analytics are drop-off the second in Proteins, Excluding X-month year-on-year. level, while compare we of filtration, year-on-year QX year, XX% orders last last customer

of from months, few it's Some CDMOs. The accounts, true X and at be point, at when CDMO orders softness look months but not good to that of both last to say our a -- rebound the we're seeing in look take orders versus orders are pharma lumpiness a a that news about here the we fair XX%. sticky can this larger from up the is previous attributed X

corresponding digits period high were also QX single year. versus strong, last orders modality the New in up

new in XX good another to company. As top strength quarter for directly accounts our XX QX call, scaling on to our modalities tied was technology. our the with February who Strategically, is noted are

Metenova, in for acquisition space, fluid had quarter mixing latest and a Our revenues strong orders. management the

on network managing collective continue development. and distributors the work integration product new Our teams broader a through to of with plan the focus

single-use launched market, second just for the mixes first launch bag film the this our way of the in the bag year. our of and single-use into technology paving half we fact, In

automated and the developed to our contribution the gene we earlier addition, called at GMP-ready and positive, incredibly the a In fully have therapy system XXXX. XX. month X for filtration conference cell processing launched R&D meaningful system in these product feedback in new industry's expect and launches was RS on team first Interfax The this successfully mRNA

We strategy consumables. the systems in on and to our follow-on clearly are differentiate market executing best-in-class ourselves with

of our Management performance. quarterly the was The our story performance of to now and the businesses. moving So Fluid Filtration quarter

franchise quarter than growth filtration noncoverage Our more a with of XX%. revenue had very strong

As we this ramp-up impact mentioned late-stage years, these these ATF, should a in specified X the where processes many phase. have earlier, especially been of The the in key this drugs over of business by as drives late-stage consistency success more the be growth mid-XXXX. are coming driver into of driven for was consumables and and commercial since of wins

orders. fluid the good a management quarter revenue addition, had business In and for both

signs our In this in beginning are prepacked a as investments our on column OPUS slightly We had to off. area quarter, pay revenue are positive solid QX. seeing some versus up chromatography, very business

expect major for and strong, QX this modality of the uptick driver more further self-packed. here business growth growth switch in is the in as continued funnel as prior revenues customers to of OPUS recover continues years. challenges to in convenience the markets shortage opportunity The us resin versus A new from we prepacked in the in is demand columns

see analytics consistent last continues for purchases. for There seen continue over fewer for start this analytics of strong opportunities Our have these and as dollars what strong. few in to management, XXXX. year, process is the with and RPM, growth is drivers real-time by mainly demand technologies driven the or franchise here FlowVPX be to for a we This of to the capital Again, equipment slower years. funnel we business our had

impacts noted in drop as Finally, in to we performance. The with in demand our Cytiva XX% revenues. we essentially had quarter off off and And in also dropped line both weak a XX% year-on-year decline for zero. partner the of were burning another proteins our down in guidance Revenues proteins. is sequentially year which QX as inventory, to is February,

destocking continue We over we the X as analytics, trends consumables positive is a staying X% XXXX. we're of in and We our start X% sales last steady, in are growth summary, believe to expect However, essentially good us. behind ahead orders months. in holding guided. In here to previously see off and chromatography to filtration, that

half see for it remain Jason Our guidance financial a our in longer-term that, in I of growth to confident stronger to is With in with to bioprocessing the hand We XXXX. based year. in the potential update. the view expectation orders medium- up over second pick will on for

Jason Garland

X% Tony, for quarter full unchanged Today, the we a on for We acquisitions affinity our everyone. a lower resin decline on quarter of million results our down $XXX contributing financial proteins, first morning, and by ligands of with in or strong currency expected basis, XXXX. reported adjusted from fourth headwind good first demand. the you, this of in an XX% financial Revenue guidance reported left is growth the year the total sequentially delivered and organic of driven primarily quarter, down million and year-over-year from Thank a nearly XXXX reported with $X X% was XX% revenue headwind. and quarter

quarter, business, the of in performance million COVID in base approximately the which recognized for and COVID sales $X protein mentioned, revenue our color me Therefore, our year. Tony our in first sales from the regions. the base our the XXXX quarter XXXX prior let $XXX were $XX Tony excludes on was the XXXX acquisitions. X% quickly and on million We in versus so franchise shared performance, million M&A, quarter down our of quarter global sales. lower first of first across $XXX M&A As million in highlight revenue

our first the global the and and in while respectively. North America quarter XXXX, of of business, context, XX%, Europe and world, approximately rest Pacific XX% represented the For represented XX% Asia of

Europe our in was by in across and decline weakness of all and decline proteins, in Pacific rest quarter, first Asia with The business the was in China. world being franchises, offset driven in strength on the was the except down by slightly For strength up the continued non-COVID filtration. ligands America North

reduction $XX to XXXX margin margin the quarter year decrease reflects first headwind COVID last of from delivering high $XX reduced XX.X% while points tied First gross of roughly the over on profit X.X lower gross revenue. gross adjusted The a quarter mix with remainder in in the year-over-year adjusted year-over-year volume. X points was of a of sales XX% million million,

gross and points, rate, roughly guidance XX% consistent with quarter XX of achieving Our XX%. lower our XXXX remained about basis total slightly fourth margin year volume so our exit consistent with XXXX down to

we ensuring right of resources. balance As the cost and we on shared management we have have before, focused remain

driving investment productivity remain We on restructuring we'll execute and our efficiency and continue manufacturing in prioritization, spending, we and focused to across our network. remain actions, diligent

in quarter impacted of by the SG&A gross adjusted an restructuring $X in from facility quarter to of we after both million year, are prior versus nature first $X costs. $X reflected adjusted was quarter. This XXXX fourth million in As first All and quarter, products. The first of by additional driven in million investments charges nonrecurring mostly innovative by incurred our an driven the that charges charges was with SG&A in described manage of OpEx while drop million of in of million the R&D in and by only update, $XX and just decrease severance increase the are of SG&A these our annual plans down our from continuing in the quarter margin over to exit was timing GAAP to quarter, are acquisitions adjusted discrete fourth need a the for technology increase the driven Sequentially, evaluate periods. closed down income adjusted $X will profit also in the actions million the expansion is operations the XXXX. salaries. coming for up adjusted we the we compared continue million from as XXXX. $X Though P&L journey. Continuing $XX in first $X current through just our end, new the increase all million our P&L, introduce our future we restructuring an million as $XX is

impact repeat fact, stock in employee higher services. grants includes and the did increases, was by also not fourth which salary comp stock-based the benefited grants of the exits, dissolving new first offset annual This quarter, in timing the from of external comp In quarter. with and,

OpEx includes in by a X operating Our investments XXXX roughly driven margin X-point a roughly headwind of last cost operating initiative which income are and we year about been offset first lower about on points capacity the year-over-year these our net negative deleveraging nearly points sales. Both same quarter in made of is capacity. XXXX the COVID by is at primarily X margin level fixed a depreciation, Year-over-year, critical partially reflective structure benefits. mix X-point margin of operating X-point with of from of had drag sales income X% volume the and period. This from from have headwind the

driven million EBITDA down quarter XX% This $XX the margin the was approximately increased $XX versus expense the on rate net the by $XX $X million, Our first income approximately Adjusted which provision. quarter improved in interest higher $X drag was and XXXX operating interest year. excludes cash less last our million drop was of for tax million net from by interest million adjusted position rates of income, income depreciation. of offset

rate effective per on in tax Our benefit track first while includes share in fully from $X.XX quarter in adjusted as XXXX. compensation, the was the the stock-based year effective adjusted compared for tax quarter quarter a rate was rate earnings in XX% XX.X%, period for to total first diluted $X.XX is guided still same the discrete the February. Adjusted

XXXX cash Finally, flow for up a from strong XXXX. I'll to now I'll move full are our with cash note non-GAAP earnings $XXX our from release. the increased press update guidance the in GAAP quarter, million, please to the of of And to included reconciliations position the $XX for today's our on guidance is generation inclusive in of year and we speak tables for But our of FlexBiosys Metenova guidance. further made acquisitions guidance financial adjusted in our fully the XXXX. XXXX. clarity, in operations quick to million we reconciliation the that end

summary, year guidance total shared adjusted the In P&L. no quickly in through changes the we Running to that February. made have we ranges

of revenue X manage we Proteins to $XXX while China. XXXX headwinds, for to key and be to COVID, million range $XXX is Our expected the in continue million

We non-COVID points our expect X% with of growth. X% that growth to M&A business X contributing for

note, As be reporting sales COVID in be not as minimis. we XXXX this will a will de on

half second and expect XXXX, we be revenues half XXXX the again. expect of higher to the step first half than to revenue XXXX for of We second better the in

be after headwinds normal adjusted is We basis proteins increases, forecasted see prices from points and compensation deliver incentive our be inflation gross year-over-year entirely is raise year, XX%, we mix the reduced range still XXXX. To far to these expected in salary headwind margin rate the back to with employees productivity, in about XXXX will forecast, below expect of impact the gross to from basis for our adjusted by flat selectively. levels though XXX being of to our price XX% we resetting February, from essentially in XXX material to of roughly which generate for that in manufacturing flat XXXX. The assume margin offset to We will improvement. points summarize

margin basis midpoint $XX million to XX% versus adjusted our about of adjusted be between sight points million $XX our We rate, down income of to basis to expect operations productivity. year-over-year XXXX our XX% from XXX or from to adjusted and operating delivering operations which is points line XXX at income we see

However, incentive points total increases, from volume creates the resetting compensation headwind. points with SG&A. deleverage protein income mix of our of total and is XXX inflation, at greater a than headwind approximately headwind And level basis of incentive salary and operations material basis of lower costs sales XXX in the from from majority the adjusted our

and long term. investments protecting discussed resources the As cost we to focused needed optimizing our remain while on structure earlier, grow

points from costs basis million from be the through capacity Adjusted grows, margins to As the reflective be our XX% grow we of to range expected profitability adjusted to have depreciation it. of critical other year, P&L, of are exclusion the million. roughly volume headwind we expansions XXX $XX for made. Continuing we with income expect EBITDA expect the XX% of $XX in our and the between to fixed

appropriate to continue through and will interest outlook We of the monitor update the rates this progression as year.

Incorporating $X.XX, share $X.XX, Our between items, of rate versus last $X.XX to expect expected we $X.XX an tax to these be and XXXX estimated down respectively, our year. per effective adjusted to adjusted earnings be is XX%. all

continuing to with to control modalities, building questions. increase and strategic Metenova me and will to as call the on in go state our I'll top remaining the the execution let in integrating position successfully for the and lines diligent up, that, laser-focused our products remain year. back more expand our through we cost operator new our priorities, that delivering new of on the accounts, support turn differentiated wrap productivity open margins we innovation to we As wins off With

Operator

[Operator Instructions]

with Vatnsdal comes And question Rachel the first JPMorgan. from

Rachel Vatnsdal Olson

Perfect.

just biosecure some headlines the Act. Obviously, ask to seeing I have here up, China. first of So some that trends on we the in want to of we're related

out some CDMOs. You of lumpiness called also the from

So in from seeing of are and what through can just you customer then terms are you end? it of conversations? in there walk the you perspective will expectations China just thinking about us also on a how And your terms year, how

Anthony Hunt

Yes.

ask we're I in general, this, then CDMO market, the But start of weakness QX who's time to region what on some in China, which I'll Rachel. think positive also in thanks, I'll joining So of continued today, bit us very seeing and in repeat didn't in out comment. trends a who's QX. little a the order kind had spending Olivia, is lot

not it's on Pharma, so are of Maybe, bit has on just the a woods to what terms and out would kind much of comment of yet of at. not And you positive. a the the -- CDMO out we're been of seeing like situation, pharma? China in bit little Olivier, more little where course, you're CDMOs

Unknown Attendee

Absolutely.

So don't as Tony improvement just see yet side. China mentioned, the we market on really any

with facts biosecure obviously, impact X As right or CDMOs, say now like early most us. will wherever there and to the for the Act, product not, which matter doesn't a mentioned, whether little potential big it you pharma, too bit are is of meaning we industry happening the work

scope right is very In terms now. broad of the the China estimates,

hear customers. close So we our how will we very waiting this and to implemented, also be to are are progressing

Rachel Vatnsdal Olson

to protein dig a Nice of just I then more. strength ex into follow-up. quarter, equipment and portfolio some the bit to wanted my proteins hear weakness And the the of in as just Great. but this

just through orders XX% headwinds in proteins how mentioned your this of in changed land expect relative walk you assumptions? for throughout And that year? the to expectations? year, us rate terms we protein were has And did your I what terms quarter. cadence this on exit proteins you then in that So Can of the of the down believe anything this should

Anthony Hunt

when Thanks, expecting. we we're -- Yes. exactly to February, with protein got on XX% about Rachel. we in XX%. It's down back were Look, side, line what the together set in we

at QX $X line I in that. And much pretty follow-up we the proteins. think proteins the and we that just range that we're probably orders take it's in ex line calls, you of in with around in a QX what in with exactly saying actually were million look per quarter, out, lot and saw you if

what is and we of it be down expect XX% So the year. the at There's were we has changed, expecting. nothing end to to XX%

Operator

Jacob And with from Johnson the question comes Stephens. next

Jacob Johnson

Tony, point the back orders about different any quarter? to just continue signs kind if you'd throughout any how you'd Maybe, half to commentary about year. will orders the orders that thinking Can view give think of in to April, of a as support you pick like just trended possible, up just way. about talk And about we this the

Anthony Hunt

February for protein then -- peers And our the amount I were a and question. think, But strong, the most a covering fair lighter thanks month. would that's January shortfall. of April that to pretty up the I with how were ended yes, a say book-to-bill X.XX Jack, where we similar, actually with of very somewhat and we Yes. March were and we off being of

would to is much come close expected in. in -- have where pretty April to it Now we come it's

half to through the we to at year where overall think need for through go be, hit we to as us see target. we when and QX second orders the we of pickup I in QX a need look

equipment There's seeing. I fact behind nice that's points QX, troublesome the the is because is number we're positive rebounded, something consumable we piece yes, but And or capital about our typically continued We the equipment know fully quarter anyway. the that now really the annoying saw that slower the QX really the a this for to some signs capital peers talked weaker really, in mean, of I like weakness, in is capital I destocking that market And China. And side different. that that is CDMO the think are market. real So parts really expectation. parts. more equipment, were weakness trends of a positive with no less dealing

we what Jacob. that's kind So of see,

Jacob Johnson

equipment. guess, And I on that Got the capital last in I to it. comment, up weakness follow wanted

kind You've to Or this the of efforts? anything trajectory equipment is impact the been of of just on environment those systems portfolio, out kind a demand journey build it capital just about current seasonality?

Anthony Hunt

one I'll that X, and we and when start becomes capital little talk are launches like have the back spend Olivier made year go I equipment get XX over a the a for year, XXXX, end you think of a this the -- maybe Yes, of the would really the don't us. -- people market have some you bit launch the last important I kind years, definitely say set which finish off released. at can dollars the of then you the but of year and dollars that about budgets

we think getting of bigger should about. that a it's dollar sort more worried we is real any released be opposed So issue as of to

filtration -- systems. we've we've building equipment time last it's you on lot We've and consumables the spent a lot recent made as year, the and whether over on you're of of a a -- or management a years portfolio our a side. to he a portfolio, those on last market. our launch into maybe, do of wrapping in of of little talk out what it's and we're October noted, bit lot consumables, systems the about back you progress. And food X spent capital seeing the lot capital Olivier Olivier, or equipment with more chat joined want a time in Now

Unknown Attendee

No, Yes. absolutely.

I I launch ever the system. so RS is several So on very seen much unique product mean only we traction the in a which launched did last just new called a XX, benchTFS years.

for type and this new being the mRNA perfectly and One modalities of for it's like really like is application, low-volume reasons of therapy. of kind the gene

this and side, to year we generating significant for expect traction So sales that really already great it on us. be

Operator

Souda Puneet comes Larink with from question Partners. next the And

Puneet Souda

Okay. Great.

Okay.

a mean are. appears then it book-to-bill. challenges where one I the So proteins last about have challenges just that quarters. is on But pointed proteins few the I for first follow-up. you've And

ex if you So have that talked more quarter funnel, sales proteins wondering aside, at the look you that overall last proteins for about and leading just there's I here when think a you as number well. book-to-bill overall

I'm this head So second funnels we sort half into as sales the the seeing of of wondering first in there what part the of you're year.

Anthony Hunt

Yes. look book-to-bill, on look when have think x basis. at from book-to-bill but at Look, to proteins X-month is honestly, the the Okay. I this way I the don't I for and to it a look at

So if you months, the over [ X.XX look last X book-to-bill ]. at our it's

a I to investors healthy with We're sales had think we've this. known as and we've in orders. And X% right? terms X% that's about on conversations the we've and chatted sign, headwind. about ahead We've of proteins analysts known of

quarter on I kind is up we're franchise, in our for consumables that and which make And biggest was terms year-on-year see million strengthen can $X that per strength up, to on you challenge, filtration hematologies. of of then XX% think XX% our trying orders in products So sales. it up in and in X%,

a it's encouraging. into percentages funnel at opportunities lot funnel the what's lot year. talked we've unchanged entered XX of the new to a of at little much improve. XX% the of the looked part to versus noise that to think our There's at months. Year-on-year, very as up. we So sales XX% interesting year, we is beginning we -- the funnel, is pretty sales market have XX% still -- what XX% flushed that's out. over and the continues look that little we I be down chop bit about go that sales through versus if XX% The we last the the versus XX% of in on saw bit a just say begins is about And would expect a but I funnel. have I getting

we XXXX. the deliver we So funnel need we in to what on have right to deliver -- it's think

Puneet Souda

And CDMO it. a then just follow-up on Got side. the

You expected. would seen stickiness not is or said what have before CDMO you

fundamentally what mean terms overall on do there more you the you bit CDMO, within And there? the Just elaborate there? in something a And can that? recovery is of different

Anthony Hunt

and the I'll pharma quarters, because start, lot last spent the only of key actually over he a I'll the visiting key accounts. out time not X.X Yes, also Bolivia have but CDMO accounts, actually

CDMO the around what base more really we're is me, -- is within seeing customer lumpiness certain For accounts.

it actually If last of couple stronger accounts revenue just of in long seeing quarters. a and XX terms do that chop Olivier, bit can of of And it's based kind you're look we're consistent down. have weaker XX a and top the at to until CDMOs, about chat therefore, want in marketplace. how orders. It's But you quarters you over the you little pretty in or top on -- bounces the little maybe, quarters up tail moves, what outside seeing the the

Unknown Attendee

months old. have No, than higher the the X as the just would no, been I that add good order with CDMOs previous news is last X XX% months

where which or that are like means the quite see CDMOs. from moving on, At being. so of probably Catalan be projects we've potential to implementation to Biosecurity where we Act, little be started CDMO would it by improvements. and and of might one the now the some also turning high some lot the There a Novo of least right time also the to and still pieces a moving of moving note the potential with for also not bit we other are So of with business recent acquisition are

Operator

comes question next Arias Dan the from And Stifel. from

Daniel Arias

on maybe chromatography. Tony,

just think the is still be? And are shortage. I that constrained to it think was you I'm not to about bit in is needs Or low that resin then think like bit market considering that this continues Is mean assuming last better is I for a say to supply? likely, business fair by less to of that X year. the that X%. it than maybe to little the the phrasing year, outlook you I were It seems back growing from recover is chrome something. shape was you're but where it the end a

Anthony Hunt

the the say look No, we is would when challenge that chrome at business, us. behind supply I definitely

have pre-covid side seen resin chromatography times are built the we on would in have players where main the the capacity back both essentially to taste. think lead and I

nonissue. that's that's think non a I So a really --

I mean think -- can and say, biotech up? side is we're pharma, when still obviously, imagine -- for doing waiting pharma there. XX-XX and is business I split it's is how CDMOs you recovery does kind but -- it some we're I look at well. And CDMOs and you chrome know our small, you the if medium-type of and then it's exactly don't

X down. year. to little some it So is it's a there upside. Dan, that's bit we're that for thinking the is solid But slows of X% pretty

prepacked real effort eyewear getting service. from as companies I very come space order I of much uptick come chrome, us looking we of that new from ago, modality say, and opens at convenience in the were a on think we're to getting years years us and getting the ago, that for as traction. And encouraging half traction will the we're a see we we're And it. that the looked if X surprised an lot weren't with a that X back put second is in the really self-pack now they're typically really space, on would year. What's seeing the went we we of you're looking to that

continued growth. X% to So of area probably were look to a CDMO the would new then could modalities X% I higher that the that It's pickup to growth an side to I see end we think growth. you where if in get in that's -- and

Daniel Arias

Yes.

noteworthy? year Jason, year of cadence then comment sequential is XX%, sort can versus from containment cost margins, we that pull you a what's improvement then, in you model on to you to the fixed on to on a to fair order EBITDA time? the versus might Or as And leverage next think it maybe this And the that's next Can need more on standpoint Okay. just make ramp get what touched maybe OpEx the volumes across cost production XX%? year. be about for done side elements. When anything the

Jason Garland

in point, the the then X see trying of of the to up we'll profitability but where of get X higher leverage, from I especially to cost get a on Great. we're to increasing points probably aggregate. We'll rest been if but and margin, of to of up half scaling X% answer just Thanks, certainly year. -- through programs first first think to further then be taking. we're X for bit the OpEx, points. content. yes, see actions reduction the get be through Well, through that can straight XX%, our And OpEx out, with your imagine, we've you the to We'll question, little OpEx. -- volume Dan. volume that's Look, at this second would X at actions the and XX% through playing think And points for half about step-up I your over look with guidance quarter some kind the that's we how of that that you mostly as profitability we'll leverage of right? So gross clear get

step half, see up. And we'll continuing higher to in to that the higher the that. profitability second with your execute point, really we're So volumes the -- volume

Operator

RBC the And Capital from question McNamara next with comes Markets. Conor

Conor Noel McNamara

X Tony, book-to-bill things just of highlighted X.XX than book-to-bill last you versus quarter. to for the back X months a was for the the greater One getting the

that So in I'm the anything just -- higher was equipment timing also curious of for of be for just around there the X that you confidence above should rest cancellations or seasonality gives if you QX year?

Anthony Hunt

Yes.

think impact say, take mean, I quarters, we between is in proteins. last different or there kind and unique the the the proteins was we've in the what versus, piece. I in don't QX, QX QX see you QX X or then on out, near So what if of the QX you orders anything over X besides seen proteins on can highlighted

sections any of going look in any market. lumpiness have our or it's to segments -- you're whether peers, the at look us and can different portfolio, you or Now of

So comes but for around instance, increased weaker QX the Asia QX in QX. But out, same had QX, kind including capital all we equipment. had stronger in weaker it traction. versus stronger number, We QX, see to And were versus in consumables China need in QX and of in right? in it look, what balances we we

goodness we're to We see little more. And to capital a course, all see to we're got also it's as of bit seeing in got the to back continue. beginning equipment a as side. unique consumables, what a which rebound CDMOs So -- in We've the you got bounce a headwinds, proteins China's is we're is position we've in everybody everybody the of headwinds, as got with we've is company a while additional headwind, a bit headwind, with know, COVID COVID because dealing dealing in got protein.

it the that's of portfolio. on goodness the in So bit masks a little going

Puneet Souda

proteins as you or else and there's business, impacted as calling worth just are the margins on as comment margins, this strong as what gross weak far then else mix? margins far -- that mix on equipment's And on margin consumables if anything quarter, anything out the can the the you can

Jason Garland

I is above mean, look, average. Yes. certainly the proteins

quarter then quarter a other to first sequentially 'XX, keep mind you last the of first the is basis. million at in on it fourth the look in first too, 'XX first year And $X.X million quarter think $X when at from COVID thing, sales fourth at to very I again, quarter. quarter to COVID in high margin. revenue of year-over-year margins quarter high both

I COVID this the that's in for But as some changes margin well as it's proteins. of so maybe a do of less more certainly, comparable you on So and of through drag a the us year. dynamic terms basis think

Puneet Souda

Got it.

is bigger Okay. But I that average. the guess proteins the question. was above

Jason Garland

Yes, absolutely.

Operator

Matt the next And with Larew comes William Blair. from question

Matthew Larew

inventory It I'm and done of an it's lack sorry, more sounds that on around issue. your one activity of of comments maybe another work not given CDMOs. on the issue an sort like destocking

break perspective, it your modality a year. were stage way on So from us just either early any conversations own to whether maybe stage, CDMOs. confidence out there to just to curious I guess, perspective, give orders the throughout Is late orders cut or if help returned you with just

Anthony Hunt

biotech level, to the earlier, mAbs, gene into funding top biotech right? Tier question. the X feed And I accounts. And X yes. biosimilars. see encouraging that. therapy course, lumpiness terms start strong At drugs the X said Tier as the X that for the CDMO look, see the CDMO I think of had it's a to drugs. -- There were know X, quarter Look, that more we're approved, small companies players, we returning, industry of right? And there were CDMO Matt to in I it's number is or seeing the encouraging X a, first at of also think,

better So seen that's actually been a pace than in we've at that's prior years.

All look medium-sized the were encouraged us, of that to is the and when also do those CDMO like going turn lot of that. right, biotech we side. for a the companies map CDMO industry to at because you market, help And smaller to

I those got Repligen. we're X/X in approved of think products maps that from with

again, like, we'll it it's, plays all year out. we and So leading indicators we as the see how that go through

Matthew Larew

in that year ATF. a actually XX%, comment state and little maybe terms number relative a to in period Okay. commercial. filtration of by next in And which a my to you how maybe into mid-'XX. you of processes context the or number is that up commercial in us and X since typical you late-stage weighage involvement non-COVID into spec of said give terms number total compare perhaps question, would that driven referenced your typical or Could revenue feeds commercial And processes

Anthony Hunt

Yes.

late-stage Repligen that have I a But some of our the and have through as of XX% revenue say drugs right? from Olivier ATF Let in. of start, we're clinical. for talk commercial, nuances the from is, coming coming X XX% me We [indiscernible] would that I'll company, and revenue

been we've So

Gap] [Audio

can couple soon of imagine, over this, last as you the than months.

serving we and then processes. I out. delivered the this would time were processes with and plays highest in our But to stay That's see making there view. as if on We're sure probably transfer happen. focused the quality lag products some on customers get brain how yes, will all but tech and our pass, that would think changes, let's see, it's there it wait be were a

Operator

comes And Markets. Capital KeyBanc Paul from question the Knight with next

Paul Knight

Tony, haven't And of column OPUS or to Is or be way level any I in GLP-Xs. not what's question prepacked development? brew, portion product be been you so still know with of what last -- half would home could the that? is the there you you're involved speak, second the then market, question

Anthony Hunt

columns. but to smaller, would would question prepacked large the industry, the biotech great moved pharma a majority first, on of this question a bit prepack say answer -- mixed that vast I say columns. I the of has medium-sized to is That's I And vast prepacked majority would a side bag. I'll the have the -- the of columns. moved companies also CDMO say that

a definitely getting columns structure, you that meaningful. But of in just we us mixing number can how companies need things out of in management a really not account little that pack there's play it do technology significant component chat as on And You still delivers pharma fluid to have know the But focus a can it, interested about pack but GLP-Xs, a of We prepacked what we'll management, side of We're for some one minute. of when embrace we the -- large to do have do talk involvement enough comps, some companies not in that our it's the having bit a we is our they them. we that you we flexibility have, side, areas one key the grind. And a there. ourselves. job. call big imagine, is pharma of maybe it's our with it and slow like that bit of about good that implementation Olivier but maybe the a

We for team pharma side prepacked not can the us, today, you bit areas least But focusing how management continue look to is plan. to to for where we see talk at on want do the it's columns? about Maybe, big a Olivier, kind of a icon little the play.

Unknown Attendee

set The to point advance offer product big know and specifically. on have on and A Pharma the and question to both why portfolio and Z ready are the capable a big months, OPUS CDMOs to happy well covering XX progress they don't you top -- sure And difference always one they use we Actually, might maybe they side. we is the year to will the yes? But pharma is back products columns side they as count just love offering one pharmas for built over in that other to what about really in to between in your the because we capture manufacture then know, add to are have a have XX the side X months. of in which next about that they We're know CDMOs we on next really OPUS CDMOs we've like to today. make on have as to management, really ago. the whatever

Operator

next the comes question And Bowers Bank. with Deutsche Justin from

Justin Bowers

questions. of couple a So

norm? And more on close in around on and this is like or of CDMO And patterns the you're areas. comments come to the of sort second CDMO normal ordering those ordering or Just we Is new Or and is to how is Just terms replacement? more back sales? sort equipment on CapEx like back. then your the builds that post-COVID one, of lumpiness just are just gist to part you're starts of sort targeted see trying get Are we? the about is of going the that a towards sense fits there, patterns? comments seeing it the it and is

Anthony Hunt

Yes. No problem, Justin.

CDMO the consumables. there On in of but there's some lumpiness, definitely also capital there's equipment

all capital the It's equipment. -- combination both. and at say, So can't data it's a just "Oh, of you look not it's

don't versus think other. And the come back. the favoring I So CapEx then it's one

more that's getting released. think around I dollars

in half big terms of spend you the looked there like of was last at was half pharma step-up If a how second at in played out on went biotech year in in CapEx CapEx CapEx, the year. And look last year. It then first we CDMOs back or and this. the of

just year ago. that's So a

other up the second into you but the it at picks you and If year. looked tend typically and to through went on the back QX QX be does half of lighter years, go as side,

Justin Bowers

X remind you And last commercial the opportunity stage when what -- what that up year. to like well? you mentioned of follow-up. scale early then from the or there programs an is and CGT you as the revenue And Can was go provide the late-stage sort you book-to-bill then my program, a for a all just us can

Anthony Hunt

Yes.

one. On a little bit space, was hematology the about it CGT

a X way of at commercial. we look hard commercial. factor III it's demand, into revenues of portfolio. kind blockbuster a It's X be it. it it's a high on and to high, nice a to tend and of factor So to bad I go a to double, drug, revenues more when amount you for Phase than the But right? it could dollar But could from quarter to obviously, double. to Phase of X, this the that a a X higher X typically, put much a think general, not between But be would get in

Operator

Jefferies. with the Matt And Stanton question from

Matthew Stanton

Maybe the with you. XQ sticking theme new of Tony, mid-teens. modalities, I X-parter was up for first, guess

think kind to been we've tougher the longer you keep relatively aside start the I here in potentially for this year? of growth part of then just pace heels think stepping maybe to the other still back to then any think X% part adoption that year. Is the within can't modalities. portfolio of more in see half the the X% the under-indexed OPUS way you there this to of given about talked up it? a you've And for there there of return new from looking That's the comps upside seen on recently? XQ? And guess strong of parts double-digit a And about for right I are term, we can't any the market, healthy Are softer category. back the period reason why

Anthony Hunt

obviously, that just in modality [indiscernible] XXXX new quarter, and We've in in questions say consistent, is that, the are obviously, coming been -- a Those you I good QX, accounts. walk in which Matt. that growth, Thanks, few Yes. from strength double-digit a though, that's few saying but good would is through pretty great. I'll

So hasn't tail up humidity long it's yet. whole space, in like caught the modalities the not really new

to XX to up side first it biotech the flowing industry that could investment sees anyone that quarter equation. the months be manufacturing that's but of So for an impact, have should starting the really into pick the in X before

that look, is this to really accounts are handful we're think take I we say, and at have we that it because So annualize little to take don't just of of have going sort we that -- it a careful and be look QX QX don't we driven by scaling.

you're year slow in part. will the the do of And right definitely I tougher that that's think growth. down half the So probably the important comps second

year, remember, the in if we have was; was last XXXX same But you space the That how the essentially a great bioprocessing modality as we a, the actually market. and overall space. given XXXX in challenging revenue new result had b,

to say I'm So quarter that, like to we X% we're X% so be what see before could that another range or in higher. in in going we I said that think the range. And right

Matthew Stanton

to there guess of the kind focused with coming anywhere talked I under playbook you other over then just on run is You second new years modalities? about look is the the may And [indiscernible] of here, the OPUS adoption part, the modalities? portfolio that on and are parts new longer really the the index Okay. the same within specifically of on term,

Anthony Hunt

in, one Repligen Yes. play modoloties portfolio If I the a new looked of at all where technology that markets is majority we plays out. I the think vast

revenue I think of in new XX% maybe we're now modalities.

the of the portfolio, around look And can OPUS, XXXX new revenue you analytics it we modality now XX% so no think from new is analytics the I when our had coming Technologies, in our clearly see at C even bought when space, business from and in revenue back I business, modalities.

anything flat look you opportunities, cassettes. whole nice there. ATF then traction portfolio, food have we're to getting at So positive very and our that's uptick from management sheet our to a definitely And just

finish in this towards Our RS with absolutely a is really comment Matt, whole play XX portfolio space. And I'll geared customer of was out, said, which base. launch the Bolivier then the products from nicely maybe

where definitely are So we're the totally customer some bets, geared the launching are we're of this now if products and space that placing T placing you think we right about that like in base the towards

Matthew Stanton

quarter? between EU between in like regions? bit ligands. XX the maybe the I up, X down It more to XX more trends curious top those you Europe one about If midsized in in. a the between Would and talk could tied if was within small U.S. to the squeeze slightly accounts be sounds could was Any U.S. customers just pharma differences or

Anthony Hunt

that again, region the similar That at down the in a as regions, what China. bill, -- was that right? with had in be as trying have to about problem it talking every I'm APAC, not performance that have you the say you QX, looked we to right, we would QX excuse I quarter, at expecting was if the that Yes. one But -- is would with. was something deal to where higher book much make we're probably region one weren't if an you there's looked a

on And a to us What way so to over for consistent an get pretty look, on guide And is been the orders our we if uptick, year. quarters, right? or pretty we've of the the the you see that's X look at revenue. last consistent need we as company X that I'm the sort

if in year, this we're in the first of, back of X of $XXX we year, you of say, proteins the took think be think the proteins, it about look it, if last on half actually, go in you you ex you million and or midpoint $XXX If if where X% versus ex X% take months where to you up I $XXX so last around will up we're QX where at million between we were -- revenue. probably million,

half to get of versus first our our the year. of be So in guidance, the to second to X% need the half up midpoint of would the we year

think So do lot like but to execution of we it's have there. get a stretch, I huge a have don't we to that

Operator

conference question-and-answer to Great. Tony And would the comments. this session. over like conclude you. I closing to now Thank back any the does turn Hunt for

Anthony Hunt

end thanks, Thanks, at joining. forward July, Obviously, with Keith, year for start us. the solid to everybody, for and everybody up beginning of the August. a to catching Look of

So thanks again.

Operator

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

now Goodbye. may disconnect You

Repligen (RGEN) 1 May 242024 Q1 Earnings call transcript