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Repligen (RGEN)

Participants
Sondra Newman Senior Director, IR
Tony Hunt CEO & President
Jon Snodgres CFO & Secretary
Tycho Peterson JPMorgan
John Kreger William Blair
Dan Arias Stifel
Puneet Souda SVB Leerink
Jacob Johnson Stephens Inc.
Paul Knight Janney, Montgomery, Scott
Brandon Couillard Jefferies
Matt Hewitt Craig-Hallum
Ram Selvaraju H.C. Wainwright
Call transcript
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Operator

Good day, and welcome to the Repligen 2020 First Quarter Conference Call. All participations will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded.

I would now like to turn the conference over to Sondra Newman. proceed. Please

Sondra Newman

fiscal morning, call, for results and cover to we'll highlights and Repligen's Jon Good today. our and CFO; our Thank and our will for this XXXX, financial cover President our guidance. On be first Tony full everyone. year Eric. an will and joining you results call business we'll guidance. Thanks, provide of CEO; update Hunt, quarter Snodgres, covering updates financial business

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

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

margin, operating income income share include today's net report EBITDA well per Non-GAAP guidance. call, and operating revenue that growth and morning, at expenses, measures providing are this results of in posted as adjusted gross to gross operating figures press tax earnings non-GAAP currency, is financial also which During to sec.gov. margin, constant GAAP we and non-GAAP and are and and expense, income EBITDA. on the we in this included Reconciliations release issued as profit website our

intended GAAP, enable performance of measures as be viewed to Repligen's against to peers, historical an financial benchmark the alternative but to adjusted evaluating when opportunities. and results current not investment better performance should investors These are

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

Tony Hunt

you, everybody, QX earnings Sondra. our and morning, to call. Thank Good welcome

minutes, few spend the response performance, talking our to I overall a jumping want COVID-XX business into pandemic. about Before to our

our It’s and we is have clearly like where world, eight many the and around so time. family customers. while the There customers our on traffic time suppliers sites employee our employees priorities months. over we and Minimize health working implemented challenging two last been the Repligen, on companies, a to our for focused our our deliver safety, industry, manufacturing closely have world, at programs with multiple and products other

response The the been Repligen from truly team has remarkable.

activities manufacturing and execute our We kept sites to customer critical we at sites, on have our performed while support commercial and managed remotely. We've working service have effectively open.

rapid response of Our and team goal times. with COVID-XX also has products key a manufacturing with a significant vaccines developing delivering focused are reduction created who lead in a and diagnostics, program customers drugs, for on

demand months The with to programs order end our well through that of strong increase performed in has with the four along is last first four six activity weeks. a related COVID-XX to the noticeable XXXX, business result in

raising the the guidance year on year, pandemic company. While around maintaining margins, we delayed bioprocessing the $X.XX. increasing industry, about overall on operating our cautiously remain of of adjusted while revenue there the we of the duration guidance for Therefore, and still uncertainties impact clinical and our trials gross the optimistic our some EPS the performance by and are are

technologies. XX% of the organic filtration to these to therapy positive was quarter So performance story of for growth quarter accounts adopt year-over-year posting quarterly all The growth the customers our to strength numbers. performance, moving franchises chromatography first to businesses, our as up and and four now the continue with our continue was key gene the

less with from expectations and to our other partners. business robust anticipated also than GE due being ligand proteins demand orders softness expected, late Our our outperformed quarter

XX% approximately up and quality got business QX, users key settings. technology started up the our new end company. forma, executed to our pro promote long-term our on control Finally, our analytics manufacturing VPE sell sales Tech into and C objectives of solid the as and to team global in Strategically, start team

We producers. radiated and our to call of this year vaccine expect said in launched Cassettes, be gene we Flat our We not the XXXX have new product we that a successfully view. February in to Sheet changed launches, TangenX gamma appealing therapy

on TFDF We recently also and saw in increased in both the at We sites launch CHO gene new early XXXX. space. products five more here traction remain technology for track our to therapy in adoption

in Consistent XXXX. portfolio, late-stage in processes, product but we customers for also by of orders the are April, quarter. business our Moving planned as late-stage excellent quarter, existing our in scale or line processes for is number robust encouraged other with clinical a and our infiltration stage orders the product, growing business excellent performance, an and into by evaluations March use customers, With bench single had well-positioned an lines to not procure this programs. COVID-related clinical ATF product increased movement only early

show had Our fiber also which Flow ProConnex flow hollow Path an continue quarter, led demand. systems, excellent robust to across by assemblies Single-Use business

CS TFF success sales. therapy in QX, overall continues which gene of Flat business Sheet by accounts, TangenX cassette contributed approximately cassette led Our in its XX% momentum

customers expect to as With product. gen therapy traction increased to gene flat launch our next cassettes, of gamma see the sheet radiated transition this at accounts we

technology. of harvest into evaluations TFDF feedback Finally, a our manufacturing. we of viral focus with TFDF peer gene in in The vector receive most with vectors, a adopter on on extended notably lentivirus. applications TFDF early clarification also continue at benefit We've is application seen clarification viral accounts. CHO-cell specialists primary We've and positive therapy using application field to driving yield

again QX. year, customers our process TFDF We late activity QX, first and systems the especially hit come The technology in in early for departments. targets our to expect pandemic we the back customers development work trials, that in here XXXX expect fully our but QX, the this top will in in to down increase slowed deliver more we bench revenue and to will through has COVID-XX here as

prepacked quarter our core demand OPUS another delivered robust great chromatography, base. our to over business columns year-on-year, up XX% with Moving customer across

transition pharma solution. customers the are large Equally Four manufacturing with some now scaling as continuous to applications. programs We stage. into nice earlier working the their column downstream continue accounts they at development process OPUS are encouraging clinical in prepacked also wins our had

OEM Our also franchise led by our -- protein franchise performed business. ligands well

GE in As mentioned expected to than late which was QX, orders. earlier, quarter is down due less Cytiva now increases in

In the addition, we major which growth. contributor our overall was other saw throughout proteins ligand at accounts to quarter, a business strength

demand March Cytiva for increased of supply year. are and proteins ligands are an see bringing The from ligand on on carried we We reduction in prior momentum to and orders directly XX% versus XX%. expect Based we anticipated to of XXXX which over business to than our into we this, QX to with COVID impact less April, expect be demand closer concerns. has in our year-on-year approximately forecast forecasting the in-house, down X% X% now therefore to in related

for analytics gen a expanded led of a and franchise about Europe Finally, second-half up commercial demand Technologies with move the the C next quarter FlowVPE, XX%, of in the beginning year continues strong our from to good team had track R&D product a team and impacts perspective, our with by remains launch. to We're on process which forward see Asia.

India shipments in The are COVID-XX delayed. ongoing So product QX, in been offset a overall, China by challenge But and in we in pandemic to these has start in America and where weakness particularly off XXXX. Europe. a countries definitely were strength was strong North

increased sustained the demand related activity we move drug by in COVID April encouraged and the As through order very manufacturing. QX, we're to

stay close We a second-half customers strong expect XXXX, to communication demand. in and with our to to have first-half help continue assess of

committed From Tech perspective, process expansion expansion Phase launches, product programs. and analytics customers new healthy working our activated Rapid to who providing safe sites. environment and remain a C we Program priority implementation we on of COVID our business focused and employees visit a SAP of for We've the remain very customers and Response X, our the capacity fully

with optimistic we these challenging are together the employees thank believe about our world QX, our dedication, to and for In targets future. to long-term their and in to staying execution are I’d like needs. well-positioned work around the obtain times. resourcefulness financial our through strategic really as pleased commitment, summary, we we growth I collaborative business, and flexible especially market we're all and

call to With XXXX Jon that, address turn to the I'll our and guidance. updated over first financials quarter

Jon Snodgres

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

you in and performance strong financial in on release earnings we've both first XXXX, As executed seen press of revenue another this with the strong quarter morning, growth. our

with to few investments product months long-term In our systems expected business and growth. addition, we pandemic, through with COVID-XX plan of strength are capacity the IT development, staying of the on first the in support expansion,

for basis, of revenue closed related acquisition Today, XXXX. Starting this growth I'll quarter process updates we the forma financial of that XXXX year-on-year first cover the XX% XX% organic C of were of guidance our On line, first reported for in and to our revenue pro represented quarter our $XX.X full our delivered sales to then Included million, C growth. million analytic Technologies. top on a year. for with $X.X quarter, XX% representing XX, record growth results the move on Technologies May

for for at included foreign nearly at quarter first Europe XX%. the North to headwind of growth On pro direct respect of and at growing basis revenue With with our XX%, the forma growth foreign product XX%, exchange, in regional strongest quarter. was one revenue America a Asia point XXXX currency

delays, quarter in XX% North revenue direct impacted during was Asia direct accounted Europe this XX%. and America for While first still quarter of shipping the COVID by of region related the XX% represented revenue.

the XX% statement, of of the an million XXXX. $XX.X the increase adjusted now profit was over Shifting in our of quarter $XX.X to or rest gross representing million, first income first quarter

driven revenue stronger column XX.X% of for gross favorable chromatography quarter the first basis point the compared by XXXX. and XXX OPUS our was in The adjusted stronger for same including resin to was Our and programs margin XX% product improvement period proteins mix franchise. to mix, productivity XXXX, in

expected of gross the to XX% gross our order from our healthy range year of guidance of book and for strength margin up quarter XX% programs, adjusted increasing our XX%. we're view first the to on to Based XX%, margin the our moving performance, the QX, stronger into than productivity

and timing XXXX. driver first million were key the C development was Technologies $X.X research the first of quarter to of costs adjusted respect $X.X for operating increase the quarter to the our for year-over-year million XXXX, of expenses, compared The With of acquisition.

Overall, finished quarter X.X% at of the expenses revenue. R&D

of X% see internal year And quarters, R&D spend of we the X% a an to as are increase revenue. expect $X expectation for we in over product our R&D to key continue range work million of we spending to However, through the to launches. coming raising by

chromatography XXXX for for of SG&A compared the to related quarter of to May build adjusted XX, in our from in operating to first was to entirely facing infrastructure, the made XXXX. process Adjusted analytics, acquired $XX.X C in first filtration, we increase Technologies, on quarter and customer million $XX.X was capacity investments the which teams, and almost XXXX SG&A year-over-year inclusion expenses of and XXXX. investments million, The

Now an moving million, $XX.X quarter, compared in and first million was $XX.X adjusted earnings the EPS, adjusted our quarter in of to XX% the to XXXX. first increase reported operating income

and mix operating was February, of product for we the quarter back due comp XXXX, guided in initially shifts strong was projects. very the XX.X% in a to margin Our XX.X% to R&D and of our our of adjusted execution quarter, in compared than some tough operational and timing better first

in which the vesting fully share, XXXX. Adjusted the to increase RSU first and the XXXX net of from income, than activity quarter. quarter $XX.X first XX% diluted XX.X% options same exercises normal lower was in income a the first for increase of the of items $X.XX of benefits and pre-tax driven in of adjusted increased by quarter XXXX. quarter to of EPS million of period million, from quarter for for compared Benefiting an an for was first adjusted stock earlier per XXXX $XX.X [ph] tax to $X.XX compared the rate mentioned XX% Adjusted of

$XXX.X XX, March compared at XXXX. Our GAAP which $XXX.X to cash and yearend metrics, cash million totaled equivalents, are million XXXX at

our inclusive systems of IT first the million, quarter of primarily related $X.X million and to of projects we facility capacity For generated plus and operating cash capital cash expenditures, expansion flow, XXXX, free million investments. $X.X of $X flow of

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

exchange be impact discussed that rates, guidance pursue. As year beyond in may all financial zero does in mentioned, otherwise impacted sales, previously include Please may unless XXXX our not new also of projection non-GAAP. noted, any and XXXX mind the of that will potential fluctuations guidance on our by foreign the company net keep be full impact current acquisitions

revenue at XX% we're of reported XX% the metric on an reconfirming a $XXX year organic in to GAAP growth to guidance, Today XXXX reflecting our as full $XXX XX% million, and range million to basis. XX%

We guidance mix XX% reflecting key XX%, guidance are on margin for to increasing and product gross execution to from up previous XX% of quarter our first XX% strong XXXX our adjusted to our productivity programs. our

to We $XX to raising up from year, million the of range XX%. income of $XX margins to are prior operating operating with our for range $XX million of from also million, our adjusted a guidance to XX% our million to the to XX% prior revenue $XX range adjusted XX% of increasing

expense on this we are the rates investments. this are having and cash provided previously seeing interest on impact not the guidance, line, and in our returns have decline we in we due XXXX income our to adjusted highlighting other our now from meaningful While is details

Our adjusted expense for $X income. current million million income, of million expectation other been guidance reduced $X previous which of by income our of is from has $X and

adjusted expense We vesting are also on XX% stock XXXX income guidance previous of pre-tax exercises. based our option income, from RSU guidance our of from XX%, and reducing to benefits increased tax

of $XX we previous our to fully XXXX income, from prior our EPS increasing full to of adjusted net we’re the Based on per an a our to share, changes, $X.XX range a raising million million a raise to also Accompanying income million. of our aforementioned a of $XX adjusted to $X.XX from are for guidance range net the year, guidance $XX and diluted million adjusted up guidance increase $XX to $X.XX. $X.XX this $X.XX guidance year

the reflect to for estimated fully continues full an shares million year. $XX.X outstanding guidance Our diluted

$XX $XX million of and year depreciation expenses $XX We EBITDA to $XX.X expected and $XX intangible amortization approximately guidance our from respectively. $XX.X are million, million, for adjusted million million raising up also range full XXXX, to to range previous our be to with million

to million capital XXXX continues for expect $XX company The an to $XX million expenditures. estimated to in invest

capacity facilities with increase project. out continue move capabilities in our OPUS Breda, plans in we manufacturing California our Massachusetts SAP to implementation our As build forward and our global to with and

investments the funded from with million, a of GAAP We cash $XXX metric our operations. expect continue to being to XXXX to fully and by generation be in million yearend cash equivalents, $XXX range cash our CapEx

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

Operator

[Operator come Tycho proceed Instructions] question will And [ph]. our first with from JPMorgan with your Peterson question. today Please

Tycho Peterson

morning. Do in clinical about you are you clinical, seen impact, you’re a delay timing how of the given slowdown we've expect delayed thinking the commercial? Tony, two-thirds about given good Hey, back-half some trials? trial of a third the

Tony Hunt

there's when trial a starts. Tycho. When completed, at clinical it's via processing, is between when manufacturing Yes, and question a great industry lag you a our look phase

and five of months. sort between nine anywhere that's So

So the might scheduled clinical get to into QX of if be QX we're see the really say, out trials keeping an QX. and that into year late eye any of for, QX on pushed second-half

is the programs our push manufacturing little now Now feedback staying intact. right majority from are of really -- that they the have of we are We've the right. out, seen bit a customers

supposed pushed might get to QX. So little into a see, bit that we happen in were QX projects

have made I've that at cancellations any been seen really of. haven't aware We least that

Tycho Peterson

on some there any of stock pretends? peers comment whether a your able and in component Are And to first then quarter we've stocking from heard the GE stocking. on inventory was about you whether comments

Tony Hunt

Yes.

as only of you in first a what see proteins majority that business portfolio, in of stocking. we activities when our it about drugs. the earlier So of lines our really in to you other obviously businesses has sell XX% actually pointed XX% about our quarter Most of it’s into commercial clinical out into the part think And first don't our related the any quarter, proteins happened commercial. going we product the

But the in, that in any additional of on March terms QX, was really orders in think the stockpiling in came see shipped we QX. It some that out. additional March we and level. So to side, orders early that in the we didn't on customer that think definitely supply proteins Cytiva February. thought concerns April in are GE And in what do what came we related at [ph] we COVID reflected that has back in the XXXX obviously at will the of end protein versus

seen beyond So that, we really stockpiling. haven't any

Tycho Peterson

particular think characterize COVID think demand? Can any around the in tailwinds production? programs And about you then you you how just upstream, help you help vaccine COVID tailwinds Are number can about overall? talk around able maybe lastly, downstream just us about to of the numbers

Tony Hunt

Yes, does other terms and moving customers that bioprocessing same the trials. last programs four into of technology accounts been through is really in speed just involved as clinical probably June projects these whether But too to are end are activity almost forward. almost we get in bit because you're it's It It's these weeks of definitely days. come critical. to trying early the six company. are from a down People at little platform a summer every

So I strong where nice some business. we're at picked we've think up accounts,

like always there's said look when has COVID. it's as at line portfolio you well, been That every not to immune product our --

or core product by strength we've any our over some last some of in seen weakness but smaller couple So been has the in filtration really OPUS ATF lines, it's that lines, whether businesses. of of weakness product months, our offset or

Tycho Peterson

you. Thank

Operator

Kreger with your Blair. Our William proceed Please with next question from will come John question.

John Kreger

alter of the I'm Hi, have like changed could still all? curious really to reps commercialization you track. thanks new your launches very at client You facilities can't plans get your five the they on before? into mentioned kind assuming plans I'm Tony, how have much. Do since

Tony Hunt

about and team I'll commercial question. that two activity. parts talk Yes, of their just is, the One probably

So, salespeople has was actually a March, from of number sales us, you're point been March are April, all absolutely April, view on right. first-half. in and accounts really the But the site some activity industry, The remote. activity that bioprocessing of at late of through for all definitely probably everybody in else almost

So lots calls. of web lots zoom access, of

been But, in our QX. working need all get the expecting having we were and in the customers we're response orders come programs from in. on have right our with mean, I executed Large to fantastic. QX that John customers has conversations come to we're

as well say, quite So it's the so. last, gone through weeks worked we've or six

right, the new majority and to this products comes quite launching our think of you're we been launching products, a when we've new But on while. I year, products it for that were working

So a of the lot beta we've testing testing. done alpha and

So But I evaluations that, remarks COVID doing would are evaluations do that those prepared down, site. my that. have in customers technology hasn't really simply where really I the like because TFDF slowed are think in not folks impacted highlighted interested on just

for So process kind we the dealing think you're and And like now. into labs development other more up the every would opening June, you'll a evaluations into products for with I lot group, May bioprocessing a bit see happen. existing as of of with get little

John Kreger

about quick they talk just of can flow out sort Great. one reopen? And and of the order couple follow-up, as last start Thanks. that to you of how over changed China months

Tony Hunt

Yes.

of if that so the countries, look Korea, I and four at three come think, orders majority India China, from, you Japan. the countries

really reopen. saw March in of through On of April significant same started February the I mean, side, thing there but of and as was once was the and saw second-half all uptick China in month We light March, into Korea, it to we well. definitely orders the pickup. a early an China

China. to was it very So similar

to we the impact in right getting shut terms is is and airports, quiet over heard last think a in calls. terms India, even six little is then days definitely Korea week had to seen really weeks. and of some Japan four probably and weeks. some on quarter, opened their shut you pickup product they that freight. us of in I probably now. earnings But bit other in That's to few just right China delivered XX again India And last countries the of probably in down in general, as the we've last status in quo But like India down up a now, the

John Kreger

you. thank Great,

Operator

question next proceed Please of Our your will question. from come with Stifel. Dan Arias

Dan Arias

are just the but reason where and otherwise? molecule things any Thank I'm just on guys. be vaccine lie. on don't to capabilities being all your you of follow-up fundamental morning, mRNA you. at to so sure Tony, into level, you able there the understand the why want Good Is go that worked account that wouldn't to side, serve we classes

are then totality the that If mAbs to a at at you you or downstream vaccine. all think it the for Is margin just there. a takes And of to develop proteins? of just needed upstream customer about a if for lower relative and we activity higher look what products and mix that

Tony Hunt

Yes.

think of So maybe question. has versus an don't the on your start versus impact with profile. vaccine protein last part I mAb that margin

technologies the all go we across think have that I molecule types.

COVID I strong a think at made ago where few the activity see probably programs. the is accounts going around around the you're I comment where moments most to you're

running think trial clinical an be eight in getting to and in going up but haven't or a to what a established timeframe want get six before I say you harder, trial of to clinical start material. in and clinical it's not jump really short is really people making been if weeks very quickly account to the

does we're mAb involved So, And in We've diagnostic in the we're side. strong. cover it the the we're had activity. side, think we're vaccine side, involved I good on involved

So you're right.

of sort molecules. technologies of breadth go the Our across do

Dan Arias

maybe especially were then to it time that they to. GE a planning off And be and Danaher proteins seem just on, pulling thinking if don't transition like the about does really Okay. you on have insourcing, tricky now

it might due least ambitions side on whether to a year product just they have do at you for protein back I was to But expected than I when there? way saw scale COVID. their production on related demand you know So better guess, this the to the comes view internal

Tony Hunt

right orders just to And orders into on Cytiva are side. Repligen. have don't I think that further related any really back increased the flowed the that's I absolutely increased insight. No, GE do

the Our year second-half changed. year, the of expectation forecast the mean, second-half hit really we their I is for of haven't that the

going expect still I down to we that down. XX% XX%, more in we're be like So, that think XX% instead to being of

Dan Arias

Maybe her the already were might've planning I started if the could, I margin not talking anything year just the as prior were something. now? do online missed in Okay. with one wife does change Op margin investment Jon, so But you expectations more work that about commercial my to outlook, for but you planning have

Jon Snodgres

relationship at so all as Yes. strong overall productivity a year, really plans to mix. the commercial will as investment, started No better in we It's well continue. as than benefits actually have of we in there seen really place that the some we've result

Tony Hunt

an as hiring additional Then But order P&L. that of on to see an on in comment load. the was from have March, flow was of John down myself doubt what there's that some looked did we going that at make the more we could it expense slow maybe abundance through out will line that, mid-March, caution sure and of the really one no

So to we as we've QX. those headcounts started move into release some of

Jon Snodgres

capacity, let’s Now, in most obviously. and are of say operations those

Dan Arias

Yes.

perfect. you. Okay. That's Thank

Operator

question Leerink. Puneet will your proceed next of from come Our SVB Please question. Souda with

Puneet Souda

the Tony, great. thanks on quarter. and Hey, congrats

to product things? virtually? it bit? on Tech, able going through new and what's meetings if Is other get for a that are Or C your sometimes to are and this you So, what's that the of the is person potentially one, I in rest expectation your manage first year, things things and the growth like that, maybe, takes Or pushed place timeline? efforts before out that as expectation in is So could that? given a same these restrictions there ask little here of travel in

Tony Hunt

Yes.

remotely that example significant So of of is the there's few on because how assist of And to reasons, definitely terms we actually challenge we've creative like customer the on on side, businesses COVID. bit -- other is and do service remotely being what C amount it’s service sites had a able to every perfect a to one do instruments. with service. a of service of in more Tech down, company customers do little A get of shut one

challenge. So been a that's clearly

on The QX, demo. as move -- being we other Tech especially lot piece a of what we challenged a do that's business, challenge being into the C requires a

the demos there's and to expect probably is to year. Tech. definitely a probably one growth being the to in a us have C XX% so good be for That's slowdown XX% seeing get That we're to growth than done. going we And offsets right able now. been still said, of It closer that

interest the activity has of the tremendous. in But, person sales XX been team technology, the

So, countries C again year should July, open the in second-half that June, of we the think up as up for pick Tech.

Puneet Souda

And or Okay, business, positive think that that in better what guide that's are Or offsets helpful. is actually the chromatography wanted are down of you proteins Does now order that offsets the here? the to proteins reach the year, we about the terms and to then, the that should I just to in full clarify year revenue for guide? the implying. how Just filtration mean tell doing that. is us full

Tony Hunt

Yes.

Tech, spectrum clearly dialysis, but that legacy an development we that's to smaller I lab not science, so in exact portfolio, C it's challenged, simply and The because So businesses drop our that's labs. you in has take be small a there's the process would the there. definitely all going off have being businesses into research say,

smaller We are also challenged. that has add businesses Again, been these a but have a they business little hospital up.

goodness are proteins. So in against the our those offsets

or versus is say February. same Filtration X% were we probably I were. do get main business. it's we total It's at probably number. that other TangenX where the think that general, Again, end or down X% of in some not related the to as product where thought smaller we hollow about lines is chromatography the the like businesses fiber of ATF or into that core the I'd loaded

we general, from expecting, than in drop on C off look of maybe the small kind That's better off But small Tech. drop a way in the same were little proteins it. filtration I a at

Puneet Souda

have Great. from for now? I strong you're should a year terms the strength Obviously, in of the for the But the expectation know, gene just How mix therapy, right provided of you this if already. seeing on coming gene of you've think And rest here. the we revenue don't this quarter sort that about what's therapy? given

Tony Hunt

Yes.

don't So QX gene in QX, the I in were obviously by gene in place put because and restrictions think therapy -- the Europe our really, really impacted time therapy, accounts U.S. by were COVID

You're of of weeks really the the couple quarter. dealing with last

significant a of didn't out line about but very therapy paper QX, business. any using therapy lentiviral where gene We able on clarifications terms technology and the And TFDF we being obviously give a some into we team overall year. We're we last that's published tracking as TFDF much in on expect with a the around gene we're Biomedical Oxford more did bring folks harvest had more traction TFDF just percentage therapy our excited It's just and in that, technology our space. space. of with really in by were of to positive. technology numbers take gene and TFDF the will in We UK, how applications technology impact our see

gene for therapy be think to the us for is foreseeable base important going a we really what So, in customer future.

about excited So it. we're

Puneet Souda

congrats Great. again. right. Thanks, and All

Tony Hunt

Great, thank you.

Operator

with Johnson Our question. from question proceed Please come Jacob with next your Stephens. will

Jacob Johnson

thanks. Hey,

some had you I year, back-half pulled of do any forward Tony, from think year, you than faced stronger the comps to first-half, that kind visibility? kind demand be to until into the back-half after Just big tough picture, think Or than more better are just the around conservative of the of this more trying first-half? and you in benefiting first-half into outside get you obviously, expectations somewhat you expected. some being I going expected mean, proteins dynamic, be

Tony Hunt

Yes.

that of of the -- the the the majority demand felt the second-half second-half be the heavy is was our know stronger thought on than the and we February, second-half will So I that we that first-half end think process of first-half was light. first. business, clearly really And that year ligand around because at proteins

and going be. expected biggest And so that where we impact that's knew to was the

now. we enough driven have think quite being going by in don't of kind not played that's we second-half. mainly right But out similar that Now be COVID, that to first-half the to we're that, closer visibility versus way,

gone question year, an through three months. question we say, for still months. the the asked think go unanswered I impact Tycho next clinical through of we've about the as two, So, second-half in that's the trial

an So run-rate. we're eye keeping order on

that a if orders see there. seen But doesn't We start it July mean we May, through or haven't that in to weakness end April. any the slowdown June of

so run get impact of feel whether QX call, like earnings customers are delays of how like, clinical much in XXXX. late QX second-half coming And sense is saying year, order any have will from we us what when rate what looks trial our to August about played there a we to out, better the the Jacob,

the why And And to like. timeframe we're so where get that's look have much of keeping what guidance probably a we kind it August idea a is when to we'll better is. going second-half

Jacob Johnson

therapy, then seeing it. we're viral on announcements. of gene Got addition a And lot vector capacity

you the do If question base bigger be your gene customer into or to visibility products times I being, have biologics traditional much that's visibility have maybe the than the are lead that you do how going your guess customers? used more into sales? therapy just workflow,

Tony Hunt

have I don't think insight. more we

smaller. I companies are of think, those a lot

But what delivered good with a through. understanding so specialists them a And coming an projects think something the timeframe they customer they which products are So in the and kind want. two the do to timeframe it's what's getting that one a they as what of or the really our our terms real sales they're I sales account, of in is team BSS you job our want know get going accomplished. team, partnership have where of happening product

increased a mAb visibility I customer. say don't gene any yes, versus therapy in see So,

Jacob Johnson

leave there. Got taking questions, for it Tony. I'll Thanks the it.

Tony Hunt

Great. Thanks, Jacob.

Operator

Please a Scott. Knight will with your with Paul next Janney, from proceed and question. question Montgomery come Our

Paul Knight

had therapy could a academic And seeing or last the academic to Could downs. toward call lab from XX out what And market, and I are gene are cell year? Tony. those morning, Good I so talk lot of you they you of there's academia? big projects you a know And you're oriented customers? shut piece

Tony Hunt

Yes.

therapy is focused on what academics, in Paul, of it's we with gene I of going think at therapy. the academia, and space. and gene the that we in players the small CDMOs the do. would with I innovators really gene majority the that some cell the are forefront We So part, work are the what of currently of bigger say therapy But what's a do

majority two. So, doing of what I we're related the there is those vast say, would to

And is probably small. impact so the in academia

Paul Knight

Yes.

changes that on own or in the both color then could your projects you the it say And Is particular expected would better Okay. initiatives than highlight? or one ex-GE the of whether internally. you ligand it's market, in driving terms you've seen new that or vendors

Tony Hunt

Yes.

we two say I a if that clearly look QX, also other like in at quarter. ligand side, and came on our helped. stronger was that shipped GE, But [indiscernible] quarter partners So would you saw had that so some there orders product for we for the

activities that have. that's the they so related And to

continue lot We to couple it why we've technology ligands impact and years. we pleased ago, very traction something good developed that's over about And with go expect taken be that way the products year, we the marketplace. But, has our last additional talked that we'll the off. you'll as of to of be a hear a our launching. three to have that's reason And, that back really continues the in through own NGL the more about portfolio years about

Paul Knight

you. Okay, thank

Operator

Couillard Please come will from Jefferies. question question. next proceed with Our Brandon your of

Brandon Couillard

Thanks. Good morning.

in the above the below performed questions rates direct of color chromatography, percentage growth overall? between of segments any or sub of of housekeeping Just you John. quarter? relative growth the couple Can what the filtration, for kind core accounted of in proteins, first share terms the revenues on kind XX% And for which product

Jon Snodgres

desires percentage OEM up get I in it's think that the to our line Brandon, XX-XX overall to ratio. direct with to on Yes.

where quarter we're direct and for of overall performed all well businesses say So we our between the the can is well, XX% at as of the at. in beginning XX% that as OEM I as businesses, and guided terms us. business would the see the for year, you of

today of we're lot a providing that. that on not other So, color

Tony Hunt

we for was side, the it that positive growth And us and the Brandon Yes. maybe high-single have win on clearly, first for growth proteins. digit protein in And was quarter. big probably the

Brandon Couillard

year, then this for manufacturing any later your with into change plans capacity year? OPUS the Europe And Tony, particularly plans expansion to the

Tony Hunt

we I work in because, months, clearly year. see at three back plan that's European month tracking programs. delays that's two, in couple we're to of it's if -- simply that take surprised plan, happening But, a doing you at I mean OPUS, the in in Holland. any these on be the not And of we're the Yes. capacity place that of we the expansion the would all, put beginning

people go at work aren't able and And to right out so, the moment.

in engineering we're an So design and the phase. phase

I I that a done we're So lot of if it’s surprised hard months. to couple of wouldn't is we're stay by not building. pushing get need But, we a but plan, work off the to think actually to be the paperwork,

Brandon Couillard

Thank you. good. Very

Operator

come with Hallum question Group. Please next Our Capital will proceed Hewitt from Matt your question. Craig of

Matt Hewitt

Good durable? morning, this questions. is and me. that for just year business last sit the to do a What thank your couple percentage of you increase And maybe taking that attributable does Where Maybe now? exiting maybe believe from was you vaccines?

Tony Hunt

Yes.

somewhere would have that have don't probably X% to the range. the but I On XX% -- in exact side, Matt, range, that vaccine guess it's in percent my is I

up, Phase XXXX continue let's Phase vaccine trials of a we meaningful so be X, us. X into that move relatively small, But pick trials. any be COVID are if obviously just anything say through to lot and on from going in the then to side X Phase it'll pickup those is because And for a would those of

Matt Hewitt

even in just an With you ago. meet someone able tag you allowed whatnot, essential Or sites? a these travel Okay, of get the are expansion your great. place, do being you out like markets? international then to in business own visit onto some would to plans the either if you. still or restrictions last from with maybe of some stay minute customers be and And Holland to your that restrictions visit prevent question those considered Thank maybe and travel

Tony Hunt

Yes.

On be I in I going at the customer to think look terms visitation piece, at based customers. we're how of we is, it look way the regionally

really have European good, a strong commercial We organization.

get basically guys those a European there's the leadership customers. me to need on don't team plane to look now. after for I to head a and So right going our Europe are over or others on think

we've last that in I or customers. being the whether able conduct has months found Zoom internal think over it's with very meetings been to meetings, meetings two effective

as that, I see you'll a that's probably we technology And using that So move lot can working. imagine forward. more of

we don't plans capacity expansion out it it. driving When the building just comes Repligen do to and also with doing -- expansions, we employees

based engineering are that firms that. are have majority that in we really the vast So driving of Holland

have and project forth. you the going really may back it's So individuals where oversight, some

going enough So meetings I between travel technology, pay the again. can of we plane. up to having we're the to related attention And, a that have Zoom the going is opened tools get Microsoft to when any on to in think restrictions, continents lifting jump be terms customer technology of without we that done

Matt Hewitt

great. you. That's Thank

Operator

will Selvaraju proceed today with H.C. of Wainwright. Please question. question come Ram final Our your from

Ram Selvaraju

enumerate remainder occur, the them what on Hi, you regarding specifically, part come, the the of very just for much could to my question. to of wondering year that if thanks you please? in was XXXX I expect still taking product are launches

Tony Hunt

problem. no Yes,

first sheet gamma launched QX. radiated in product launch technology, flat the So cassette, was which the really

commercially see and happen. QX, fully our to that'll of be benched obviously expect QX sort to shipping system early TFDF in top in beta manufacturing been those alpha sites. We've Here launched. But

end on bunch Right with on gen of the we beginning QX sort QX, in next the working controller. Again, this. customers of ATF are expect of a

the So real year, shipping no side. and But in the second-half of with I the second-half technology gen now. something we're the of next ligand timeline flow unit, next sort on where right quarter it's in then the the of year quarter. might first see quarter, end probably on the at any fourth bringing in the from this, not of us expect

Ram Selvaraju

gamma of the if could particularly to radiated context therapy you wanted I advantages ask manufacturing? product cassette, the within on the Also, gene specific elaborate of

Tony Hunt

gamma having really It's is sterile close really the That's around not. that straightforward. it's system Yes, radiated versus a advantage. and

Ram Selvaraju

non-virally be transduced of more to to start is situation, manufacturing about you those see a therapy the you cell bit a impacted, methodologies? forecasts. you switch talk this people then nuanced Could And TFDF expect maybe to little Okay. meaningfully if long-term whether

Tony Hunt

think, Right. to the if revenue you that coming at the in out, year million TFDF, million $X range we were and from And look we I at technology. $X started

doing now what we're in the majority we'll We where is space. expect up. end that exactly right Remember, that's the really of CHO

started We've think for driver us. the vector to to the that's I So be just side. major viral move really lentiviral into going

how the hits see accordingly. plays we'll market, if else, that So everybody technology react like the out XX adjust then obviously And, able to and we'll new next that six to there's be months. over

focused really we're us, on the for of So, the parts very upfront workflow.

we our lot has And expected. that about not expanding it's the more two And And applications. be performed we so is the we're application one applications, technology. there'll a just applications or hope think technology the way real the far for

technology So, the one pick application important us And we others a we area might flatten slack. there'll be that’ll going forward. this for really out, up think expect would be

Ram Selvaraju

you for the just and M&A on think of you very opportunistic quickly, maybe you the could And in side? on comment side or wake that that on do potentially the there's likely licensing are emerging the COVID-XX qualitatively situations pandemic platform technology either

Tony Hunt

Yes.

even on don't But just little on in M&A any it's about differently do thought M&A side. think probably think wake about I we M&A, we than I think the XXXX XXXX. early that in a

given quarter our a a in in have talking we number like. We're we companies year. obviously a So, that companies all to given various, of

I expect change. don't it to So

it need to, can. post-COVID and Phase execute something may think comes be I if as well-positioned X go you is on and When And never Repligen Phase whatever between we opportunities. cash X we on Wave X or know, there But or of that terms said, Wave hand right? some and to you in X,

Ram Selvaraju

Great, thanks. quarter. very solid first a congratulations And on

Tony Hunt

Great thanks.

Operator

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

Tony Hunt

all hopefully to a thank thanks August for so future joining. you months. like for everyone. to joining we today. to a it's challenging I’d Obviously, get guys again, companies, Yes. for few everybody talk for a of But times in when just brighter And lot us

Operator

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

You disconnect. now may