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RGEN Repligen

Participants
Sondra Newman Global Head of Investor Relations
Tony Hunt President and Chief Executive Officer
Jon Snodgres Chief Financial Officer
Dan Arias Stifel Financial Corp.
Puneet Souda SVB Leerink LLC
Tycho Peterson JPMorgan Chase & Co.
Jacob Johnson Stephens Inc.
John Kreger William Blair & Company
Matthew Hewitt Craig-Hallum Capital Group LLC
Call transcript
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Operator

Good day, and welcome to the Repligen 2020 Second Quarter Conference Call and Webcast. 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, this event is being recorded. I would now like to turn the conference over to Ms.

Investor of Head Newman, Relations. Sondra Please go ahead.

Sondra Newman

and Jon ended morning. earnings cover updates; call. Good business financial for X-months guidance CFO, Thank provide full and We’ll financial CEO, you QX our highlights Tony period guidance. cover and our X- President joining for for the XX, Today, revised business will financial Snodgres, and XXXX. also all results results Great. June year. we’ll and the covering be will Hunt, our

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

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

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

Tony Hunt

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

continues time global our we ensuring a chain during employee operational QX for our be family safety, manufacturing to our priorities challenging focus and workforce keeping supply call, sites discussed it and managing as health and and logistics. our As on

which could overall how what plan are creative We more into not has I than able be think, now the to pandemic, business more us strategy. we proud be X our accomplish. on execute in to been months of COVID-XX pushed and we’ve

COVID-XX. organization capacity, targeting whole delivering job, remarkable rapid diagnostics time response developing Our to deliveries drugs, done or customers, vaccines full at and us keeping our operating including on customers products a to has

of first of where Our tough of results organic for growth XX% year, our last being through and quarter really the the XXXX with growth despite have growth XXXX second including XX%, been delivered had strongest XX%. half in stellar. We quarter second we quarter, of revenue organic the QX comps, of overall

XX% by related Gene revenue estimate strong. XX% to therapy quarter of the with therapeutics demand XXXX. in about in on in from our our in that ramp-up perform revenue And quarter. of we lines, is demand of customers COVID demand order expect to and were our development related driver. based All beat orders which accounts, is with from therapy continue broad to XX% particular, the The proteins XX% the major for gene We now remains also COVID-XX. direct businesses vaccines gene with for strong in very mAb about and being the well, grow to to up contributions and therapy working product existing

which will XXXX our capacity for many further back manufacturing and that expect up as of to momentum, million ramp full midpoint or our Engineered Based COVID accelerate second half million we year, the this biopharm to $X.X and of $XX in EMT. CDMOs our manufacturing, We are on of direct includes from key increasing customers programs. million recent revenue acquisition revenues get guidance our $X Molding the for by Technology the at

expect We the balanced revenue XXXX half quarters. second generally of to X across be

our midpoint raising while operating $X.XX of guidance the We’re our margins, also increasing guidance. at EPS on by and adjusted gross

spend to acquisition C Before jumping of EMT into of the the at I quarterly on Technologies results, X performance the and a post moments acquisition. want few year

core for completed single-use to competency us EMT in components. the which strengthens and are our gives extrusion and We silicone have molding deal, delighted chain supply

structure, Our customer into X build direct to expand new the our and our and flow products out integrate XX next goal commercial EMT’s OEM core base, is path that finally, to over assemblies develop filtration. months and single-use

strategy. at over the complete our to single-use as EMT XX%-plus grow integration expect on We overall coming and execute years we

for C been the help the business and Core year great strategy direct base, of to a analytics expansion customer it’s go the and Europe our the in On front, organization Asia. is the first Technologies to broaden commercial team. and

been resulted in the XX% growth With funnel the been in a year, since up technology. of concentration also team drug to and able complement beginning a pro-forma the first has applications opportunities, in manufacturing. for The half measurement Bridgewater on biological and the XX% the the products deep Solo protein especially in VPE for we’ve VPE has quarter, of revenue until now, the of QX, primarily of build of Up year-on-year centered full salespeople expanded and which Flow analytics XXXX. success

technology confident we’re processes. and into therapy expanding can be are applications that applied gene VPE the Now,

due especially service COVID. and the our call, analytics, at to support pharma some challenges we observed area for As accounts in of mentioned QX onsite during

customers is and FlowVPE Tech of organization While guidance year end of are many with the XXXX. February. our by challenges we to expectation implement year, million of these position deliver to a through clinical $XX FlowVPE is strong the C our very multiple that in the this Tech in managed C the accelerate accelerate line to and service business in ready working With in our technology exist, still months, has will launch this last further next-gen X to back with beginning Adoption skillfully processes.

So performance overall QX and by now lines. product to jumping

for proteins Cytiva business for MilliporeSigma with half combined excellent organic of quarter for ligands an we’re the Our True by the and The increasing XX% of orders in ligands expect customers driven quarter through to greater increased XXXX. of and strong XXXX. similar growth to X% to and guiding the factor the of our full to we demand proteins historical high first business growth XXXX. revenue what had be the now in performance, growth year, growth COVID half for first than expectations from factors. this more saw the for year in resulted to in quarter And additional heavily from weighted to organic XX% end we the

our greater business quarter with with fiber the We filtration XX% than outstanding had leading another assemblies Our way. and demand revenue fiber strong systems hollow saw franchise year-over-year. up hollow modules, for

sheet cassette business also performed well flat therapy from Our very accounts. contributions with important gene

new down times ATF technology. expand come the XCell as business lead have single-use the to grow have accounts adopted and continues significantly and Finally,

the second XX% half, year-over-year in Looking ATF both greater to challenges and Regionally, a very back bouncing had over after than to Asia-PAC next excellent QX with filtration Asia large deliver as few on expect track growth ahead, Europe we have months. strong the quarters, due are implementations to COVID.

an Finally, second customers up our on activity business. benefited programs, for filtration drive in we’ve an ramping the strong orders which from from perspective, half their quarter will COVID overall

XX% grow XX% now to will filtration expect We XXXX. in

our mid-range Our chromatography in capacity business lead by a had columns. times increased Demand columns XXXX significantly as second have down quarter in come stemming led from late solid OPUS here we made XXXX. for investments, pre-packed

orders see came pharma from therapy of the quarter, in large accounts. the did we majority OPUS some COVID and gene While growth

to We continue chromatography XX% our to growth XX% to deliver business XXXX. expect in

we’ve calls, the key capacity OPUS previous made with and XX in manufacturing last discussed over investments on our in focus months ATF. As

the launch in this million will to additional on TangenX TFDF our ATF X of systems. additional this seeing our scanner total launch as with million to $XX on our business FlowVPE. network. across on In a investment capacity programs year. an Given From our introduction The be perspective, new be KrosFlo ramp we acceleration our we X spending generation for second demand, up next the XCell $XX of Today, on lab million focus we we’ll we ligands of in CapEx cassettes in $XX we’ve affinity an here the filtration products launched are XXXX. are will new R&D controller, track half, the

As our Gamma for a TFDF manufacturing. serve is harvest a viral vector us clarification. allow technology cassettes disruptive upstream to reminder,

real will time flexibility, next-gen multiplexing including Our new in controller our capability. adds simplify for customers. measurement line FlowVPE And ATF the

our development to healthy turn year. on to our biological and the on centered update. manufacturing technology which to to With invested leadership in important goals, we’ve for portfolio. on single-use for an had on that products of we’re acquisition process With start the Jon scale sheet, financial balance M&A. and drugs. to I’ll excellent a an growth, our remains over new So delivered people in well strengthens positioned that, financial and a our blueprint and exciting to infrastructure bioprocessing the improve execute executed introduce internal call summary, We’ve company We’ve

Jon Snodgres

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

develop strength COVID and release longtime quarter, overall seen record market In we to delivered innovation, this our guidance revenue through we the through programs. and and driving XXXX. our impacts in growth announced step strong growth are you’ve included and As quarterly in demand with of products of acquisition, which increased have related closed benefiting our in morning, second for strategy R&D from in and quarter, in press earnings since EMT. financial today’s of updated the the to proceeded completed we new July, financial second acquisition The launch

our Now $XX.X and we representing quarter moving X double-digit growth product second more the very on growth. revenue with growth specifics perform financial inclusive record quarter. of our results. our continue XX% each well, to top-line in of from COVID-XX, organic of All to reported generating franchises delivered million XX% tailwinds On

projects in we C nearly point X majority currency on Within overdrive growth beat we and foreign non-organic revenue, gains. COVID-XX of and consensus filtration second Overall, Technologies this of quarter. X% franchises quarter, the XX% driving a our COVID-related with our these related estimate approximately growth from points business, in proteins headwind figures, and we that contributed achieved approximately X revenue of of the the realized

than XXXX Our of pro XX%. second the the $XXX.X quarter strength overall representing greater and first of XX% in – direct regional half XX% the pro a as with organic. million, revenue highlight revenue reported basis, was On of was for growth growth Asia forma of forma

in growth our organic filtration franchise we direct pro the also and and approximately each performer direct strong revenue year, or was to products growth continue range excess product process half pro forma XX% to XX%. On our XXXX half to from with XXXX revenue, of year-to-date strong the We Europe achieve a the respectively. of franchise second and analytics growth the order XX% market on performance product XX% to forma to terms the Asia for Based achieve load of million deliver of growth organic from in of Asia expect first XX% America the franchises. growth with XX%. strongest revenue for basis, $XX in of of expect and our XX% Chromatography strength half to accounting year. XX% XX%, our in for represented first of now the North

a end X%. In increase our X% previous guidance high the year addition, significant our to XX% we the X% of from franchise minus growth, to now of organic to proteins finish toward expect

In leaving XX% year, terms of revenue has our of half XX% ship XX% estimate of revenue we proteins this shipped business, second in of phasing to half. to XX% remaining the to for first revenue that the in the

$X.X of statement. the reflecting Adjusted of XX% down Now million quarter in was an over increase profit moving gross of XXXX. the our XXXX, quarter second or income $XX.X second million

approximately million on growth costs in respect second XXX increased XXXX, finished a levels development we’re on was expenses basis to gross compared book margin half the moving second for the second the our of the in we gross half are the we the adjusted including mix, the to quarter year. based and proteins in making at favorable of our expect and driven product year gross research were continued Similar guidance for sales of key XX% to programs reflecting support through strength expenses, margin of of of experienced operating margins gross of first capacity we our margin programs, order meaningful the quarter second mix XX.X% tightening strength XX.X% Our and by productivity work investments strong the XXXX. chromatography expectations. and were second our second personnel half performance reduction manufacturing points volumes, higher resin With in $X.X to to long-term second for gross year, increase productivity $X.X to quarter healthy to of half our performance, margin the half the and of continue we first we as for view of million OPUS of the expect R&D and adjusted quarter a and the of revenue, year XX.X%, trend Based XXXX, into a XXXX. XXXX launches. Adjusted robust X.X% franchise. adjusted column revenue, to strong

in support expect of quarter were X% in quarter for investments Technologies, of in XXXX. million for costs year. of May of investments expenses as quarter revenue to of X.X% XXXX as to XXXX we year-over-year capacity, operating compared The infrastructure a range out growth of $X to We full million the in overall late million IT Adjusted customer-facing spend the made of build the teams, supported second which be to increase on and inclusion C full the $XX.X for from ongoing and acquired SG&A $XX.X XX, R&D second XXXX. to well systems

our basis XX% raising our in XX%. year performance, second Adjusted XX.X% XXXX. on quarter second reported earnings of million compared to compared second was XXXX in shifting strong the Now to expanded XXX to points the EPS. XX.X% $XX.X by income quarter operating million, of quarter margin of for full operating XX% we’re $XX.X margin of Based adjusted XXXX. to and increase an to to the guidance Operating

significant adjusted Our investments support half XXXX, to we first plan half in year personnel of make XXXX, trends demand. was in second XX.X%. market Similar the to this margin operating to our and capacity anticipated of

basis our margin is for This projecting year. of XXXX. We the included an operating are point guidance approximate XXX second assumption increase in reduction the half for adjusted in

XXXX of incentive of adjusted adjusted the income was a net million, Net the $X.X of related line, bottom also a to the lower-than-normal On income or of $XX.X tax from million year-over-year for XX%. second quarter rate X.X%, income transactions. increase impact benefited stock

quarter fully increased of in EPS of share an adjusted XXXX. compared $X.XX Finally, diluted the of XXXX, XX% second to $X.XX increase per in to recorded quarter the second

totaled XX, cash were $XX and acquisition metrics million increase to at not an Our cash compared which does XXXX. This June include XXXX, costs. GAAP yearend EMT equivalents of $XXX.X million

million free For $XX.X of expenditures. million the flow operating first of of of capital million cash flow XXXX, of inclusive generated we half $XX.X plus cash $XX.X

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

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

at the the as half strong our organic Our XX% raising million, range of our any XXXX impact XX% guidance to the does acquisitions market, EMT, impact and a XX% basis. execution, to recognition the $XX million full-year as GAAP we pursue. reflecting are include well reported our in and midpoint to guidance, metric but on future does by EMT include as growth for acquisition an $XXX year, XX% million of to that the of our second of in revenue $XXX operational the acquisition Today, may potential company bioprocessing not of of

the for XX% margin are range tightening previous of guidance we XX%. earlier, the XXXX gross XX%, XX.X% mentioned adjusted of to our of to upper I to end to As our guidance

$XX a We our million. guidance prior to to are $X.X increasing $XX million to adjusted million at of from million operating up range $XX $XX margin million, of midpoint range our

million income adjusted to previous a exposure our and by exchange continued range cash other to on incurred. and of XX% mentioned, is basis on expense second in operating expected our As XXX declines invested of interest is rates from transactional $X, expands income foreign to $X This based Adjusted update margin quarter of guidance. this reduction XX%. guidance be the our points

of full-year income we’re Moving previous our reversing rate approximately benefits from the first compared significantly realized of to to the effective quarter the the down not tax, to second expect guidance to impact XX%, and does our the XX% XX% consider to adjusted of exercises. for an tax employee XXXX guidance stock from of year guidance year rate reflect additional second in assumes half. This be of stock half which the lower half transactions potential second we

adjusted to are million adjusted diluted up million, our $XX per In of our we at increasing our We net midpoint are guidance. $XX a $X.XX a income previous at our guidance. range increasing fully full-year $X.XX $X guidance to XXXX to from share, EPS $X.XX range prior million up compared midpoint to to guidance of turn, also

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

approximately of $XX and million Finally, full we million respectively. depreciation $XX the in financial our operator, expenditures, With the to at million, and metric, now to for lines a the capital adjusted amortization report respect $XX CapEx million guidance our cash and $XX XXXX, of call back $X for to our turn fully $XXX our $XX.X to million range the $XXX an we And expects operations. will questions. investments our company guidance million open $XX.X I generation XXXX, expected $XX to of and the increasing to for expenses now are be be completes funded update. to EMT million from yearend This by being by from invest GAAP acquisition, intangible EBITDA expect prior with midpoint million range increase year Inclusive with to to million cash of cash million to guidance. equivalents, a

Operator

We Instructions] of session. The will Arias Please question now begin [Operator go with Stifel. the is line Dan question-and-answer the first from ahead.

Dan Arias

the terms kind Tony, just morning, COVID patterns? obviously, just is way color questions shaping buying can here. the add Good of Thanks amazing. opportunity that for the the I pace guys. taking mean, in just vaccine up here that’s and pretty some you development of of to

advancement? here kind campaign visibility what then, demand that of how you next to the traditional or is have translated programs? quarters of is non-crisis-related as the comes So vaccine And here? when assumed ahead purchasing the How do to same it different several

Tony Hunt

XXXX. Okay, tell And Dan. so the maybe – XXXX I of to I’ll what’s I’ll QX. know parts. split of question the I’ll second you going off you on what year. happened I’ll you go visibility thanks, tell what we into is into of as kind we half the up give in and finish few in sort

So in companies about other is COVID the listen at what’s unique. who are all you I is, high. interesting is this demand it are moving tremendous. to the I and is pace that companies The mean, mean, involved

really So QX our which a for bit that based coming a Protein fact our I May, QX about we little ramp-up A Ligands, finished and is seen – in have our when we from accelerated earnings our on talked say would we call in Cytiva. did we the orders

the of some were So And came orders that’s QX, knew in which that quarter. was top materialize all of end the On driven. that, going was happened. extra we what there COVID towards to in that

Phase ramp that chromatography move orders what and quarter, in we started as trials analytics and X in delivered product companies to in and were our businesses, our the well. smaller the were filtration with working in across as we lines saw there addition, rest type we into the was, and up X In our of

our But the really came So majority board, I’d of side right for there’s the across all Bs equation. demand the say protein the the products. from QX in of

QX orders second And programs. here second for in, and that’s going half saw the into to QX. the in year in the in QX, be come year, to delivering We get COVID-related change. of we���re you when for Now, on those going the significant of orders, half

of this visibility scale those move the expectation some XXXX. year and these of hints and QX to probably with out goes of continue terms to we is our end of companies remain the think and In XXXX opportunities forward, in beyond. going to visibility, our is something But move that, our clearly, that I through that’s early of if all

last your versus question your this In terms different come around – of of personally a haven’t how quite anything is non-pandemic, across this. part I like

demands are high. the I think

You’ve to and working got to a get of vaccines. companies lot racing

programs. You’ve on companies therapeutic also got working

market So now. itself it into right by a really has turned

their and focused so, capacity a companies on lot changed of lot of And their COVID. programs have

And of the so, that’s also the demand. driven a and lot activity

some color. hopefully that, Dan, So you gives

there, You Dan?

Dan Arias

yeah, kids there, Well, back I put mute on here. are you sorry, around because my running

a here the wave vaccine a pace treatment monoclonal of made On until mean, figure programs are be you or might for antibody kind as like had that production XX you the tally behind in the that also other felt it of coin XX like were the comments some that vaccines side in the role vaccines, from of how into the some I would there these was does that COVID, this the spring, on. that a that ongoing. thinking given clinical our or But sounds things? the with are opinion community just it preventative is that arrives. of the be And

current just how the vaccine? perspective is from you’re what for seeing a activity what you the on scale timing for the see mAbs So up to thought relative

Tony Hunt

And with I as to what quickly. just definitely that That’s seeing. would mAbs of working involved That’s a to side. view. year, a clearly, are we’re just at not in, But vaccines that view. we’re that we say view. activity some half more mAbs trying the the Repligen I do that’s on will yeah, we the from groups companies on I into see a I’m make second a are – think get be think not what But definitely there global that moving And we’re the very rapid side. fairly are least at We’re pace. moving

Dan Arias

it. Got

the more versus then, at how I if outlook Jon. to just a guidance just could when of year, the And XQ due organic? the being the top-line in increase similar? up one for would sneak of the development there EMT XQ itself bit on discrete of and I’m of you view a Jon, on just for on balance and is more is much the you’re production a about? kind look for Okay, scale this prudent year, there and Or why sort curious XQ lend to point? higher the of Is back-half just that to the way at than something XQ? nature being that’s thinking little than it looking at the better

Jon Snodgres

Yeah, sure.

So in EMT I’ll to We’ve second-half in $X.X terms million EMT the question. with about for start included of revenue. million the $X

the be up question. half, significantly that coupled are So our equal why things we’re that see, fact so we resources that I travel to think, nature. As the is, we adding of and visits in I least second costs think ramping costs, Tony the revenue fairly And expectation, don’t the versus more that question QX will the QX levels covers mentioned, half of year, at QX. at quarters, human X through on with look capacity QX? margin that in linear the between customers expansion and and second And our then second levels back

they margins that’s in are half, and down gross more here those So things because if dropping gross in dropping and QX of… significantly you QX, look probably second all than operating in the combined, at margins

Dan Arias

I little and to actually helpful, higher actually why than is top-line actually referring in bit that this given much the itself XQ being done. but referring was you’re farther be just XQ, was along that that I a on – stuff that’s wouldn’t

Jon Snodgres

up do giving in make to the – looks based on Yeah, there And we’re remember, pretty on which mean, linear. order have proteins think right we we business, fairly based what HX from some load now also seeing, us our like and our the with is that on products. meaningful what have based headwind it’s I drop right just a HX to deliveries we

Tony Hunt

up. I on we’re comment QX order And obviously, mean, maybe, we Dan, that. what what one basing with jump happened on, final the know in

QX quarter could that So as that look than But higher push start QX. we could pretty go a be scale to even, they there through yeah. to now, companies going QX, be are other to right

Dan Arias

that’s Yeah, fair.

bunch. a thanks Okay,

Sondra Newman

please? Operator, take the question, would you next

Operator

of next the Puneet with question The from go line ahead. Leerink. is Souda SVB Please

Puneet Souda

hi, Jon, thanks. Tony, Yeah,

one, all, strong first First versus here compare. very quarter the really of tough a congrats on

on growth maturing. on that vaccines on understand, it’s of is, you mentioned, wanted the helpful. us, bit driven or gene you can second one plus to to? Asia of there. first seeing was you by still are out And in those projects, could you terms levered if more you’re or half? And or XX% – I just of different getting number projects the elaborate you Obviously, that COVID if mAbs different That’d of in characterize for also, would a go growth we’re point, the vaccines, – as that if vaccine number also to too? Anything be characterize the could even higher as the therapy projects that could there sort projects of percent the those of order magnitudes provide phases at So levered XXX you’re of

Tony Hunt

Okay.

think, every maybe So the bigger the in Puneet, industry COVID unlike players on I vaccine the clearly we’re happening. side, of touch that some therapeutic almost that’s

bit I last years. that those the to think number Repligen with a of been – working companies we’re more little tied for we’ve

programs a and in spans we’re and North of therapeutics, it significant in number So and America, Europe Asia. vaccine both

regions. one just in it’s So we’re not all really across region, centered

see that the of in definitely going to signs COVID we’ll there companies what beginning companies second encouraging. guys maybe of year. are There later on in half but where is of forward, and the other very that be So activity that’s are than the scale, in to big some continues is terms the moving impact of

come our is COVID were as is doing well. of could product you them could as think, X out stages the filtration C proteins X there’s beat they in terms it other second companies potential next our And obviously, companies that the they year. at for that’s we the a like And most doing X upside the upside. the general, if I where what real very us do will would scaling second other Tech, see your was see then expecting to chromatography areas has are through, the which our to the is by from, well, on of our you half earlier are X, to that where the mainly over that final move the lines growth, – and we be look through really move of COVID. pretty plays in year. moving been comments, would think the In very in be beginning much the the months. well. to beginning at happens of how expect potential year, it Asia. definitely they doing And so the question, of Phase there driven move direction to and obviously part we Phase very are And And all products business expecting from be half again, the were into to from early we at versus But of at coming surprise are

much Obviously, the and per It’s April. and to in Jon QX North huge the of as the would definitely was growth, a There’s HX Asia us out and China activity Asia a Asia incredibly maybe I which small our after highest are pretty with is to shutdown And But I encouraging a America all and bounce essentially is, right great gene start not mAbs for off in COVID Europe. than biosimilars. actually not turns amount unexpected, pointed see would mAbs smaller a March going out, amount year, back for slow Asia, say so now. base on, regions. given drivers. is COVID say, major therapy, actually

Puneet Souda

XX have is quantify this if And also Okay. and growth That’s half of book, the quantified, super you’re helpful. capacity you that some we the sort the – ATF that in within year-over-year. to are seeing, weeks in demand? the something book, weeks, are those the could that with order XCell there end, development? some the the some are you’re of your If and if lead peers you order of I could X some in capacity seeing TFDF constraints the terms on can cross-flow strong on terms weeks or wondering times on norms the have XX in times seeing any currently the then visibility So growing quantified you companies the just lead or of products are here ask have second the – process that so if of X

Tony Hunt

of Yes. Maybe with capacity the the start part question.

years ago, the think, lead they year we’ve our improved ATF were no significantly times investments down or our think than filtration last on we products maybe times I X I are with year. lead our a ago different made

number we’ve On to some the lead reasonable very down very chromatography side, to on order. investments significant obviously, times and OPUS long times ago, we that size a made of columns depending those year weeks, on of had brought people lead the want

clearly, demand COVID, side, coming we’re that’s filtration the from On strong investing.

filtration East adding lots sites. basically in West We’re Coast of people and Coast our

we additional XXXX in bring our CapEx we think in investment XXXX. to want increasing where be to equipment and through We’re as

CapEx XXXX. investments the XXXX really Puneet, people XXXX our are half is first with remind a piece into And mindset. XXXX going the XXXX, was… The of again, me mindset, not question, So the

Puneet Souda

could. the book, you quantification if The order of

Tony Hunt

Yeah.

the have portfolio, the XX% So if I increase at orders orders ballpark, numbers, XX% those XX% look of in don’t our exact were COVID-related. you but probably direct on to

order very So going the QX strong into into book half. we’ve second a

typically we referring comment would customers on side other is Some our of X as I’m they the orders had to through is COVID. have a order companies it strong very book placed months well we line way the all order And The the Others the I And orders X place to of make see only out in year. in that placed I have rest to product really to for what how terms typical end placing with orders the perfusion ATF. out. our similar think are QX QX.

And strong so ATF. second to going half that’s a lead to very for

Puneet Souda

again. That’s great. And you. congrats Thank

Tony Hunt

you. Thank

Operator

line of with Peterson. go the from is Tycho Please question ahead. next The

Tycho Peterson

Okay. Thanks.

Another COVID-related question for Tony. you,

benefiting into vaccine the particular do And skewed scale and of across up? platform? these it now? Why see are type of more of about than you evolving tailwinds curious And shift how chromatography as trials any the Just protein are filtration you that degrees portfolio. some mix

Tony Hunt

Yeah, good question.

by Protein think – really demand, clear, I proteins the A driven the right. It’s right. is pretty Ligand

and so we was went the the And those ligand And in that we on protein up stockpiling demand QX. people driving scale that know know some QX therapeutic on opportunities that there are as side.

So first that’s to the the related half of kind see very year. of through the really the We did demand but just strong growth on major not driver. protein less factor side, COVID, or

proteins filtration is at the you when versus, our filtration On difference think look I chromatography, the say, that portfolio. supply

flat sheet hollow We membranes. cassettes, have have fiber we

like ProConnex. single We have use the assemblies

TFF skid We the have systems.

our have portfolio you at products. of chromatography one look line, when broad it’s We OPUS. it’s product portfolio, essentially very a And

seeing for therapeutic are it columns or be programs. vaccine And COVID going so we into pre-packed programs demand

instrumentation it in It’s analytics same around have lines X is Tech, activity just reason, is COVID where the chromatography. C FlowVPEs That’s that for skewed filtration, kind kind more our one filtration. And you it’s true Tycho, of in the around one that solo again, product product seeing and thing meeting So product it’s line and of also happening. towards But business, are is line. we our have programs. major –

kind lines product have in buried X portfolio. of filtration our We

Tycho Peterson

of is the vaccine in then assume, any but on particular of less there?] program, [announcements color types toward any can just programs? And of you maybe being Okay. new skewed there I there terms any [ph] mRNA, type provide

Tony Hunt

No.

– on our I drugs there’s differentiation board. suited I think no RNA both that to anything protein-based so drug, I really there’s think think to it’s don’t is the us. for portfolio across based

Tycho Peterson

you at the resurgence you year that risks pushed point? on about, clinical two-thirds the fair Can the And markets last then get is on And could in obviously, of clinical amount back kind of there delays, in see your of talk of if again? these was up any trials clinical half out go I businesses talk of of a the trials of just some where side. exposed trial quarter, flaring back COVID this kind to with

Tony Hunt

players a some lot programs. big that, of the effort clearly of I think the into Yeah, have put re-juggled their COVID schedules and

probably trials insight. seen major lines company slowdown more where the large not probably order haven’t have on guys demand a and the best I product to in to lot any think CDMOs we But going activities. We’re pharma for clinical for are, are our non-COVID-related the comment

whole is probably overall haven’t think of XX% we now been going think to more therapy you but of will some one, doesn’t think mean XX% It about, that trials that don’t any companies we outside our haven’t kind to of we order the order for which seen started gene good delayed, gene the gene very the healthy. like see a indicator COVID. looking at probably to those down therapy leading grow year. a demand of slowdown opposed therapy. clinical more lot looking year in trials are market I saying – our book, Tycho, half of time So slowing looks is about to we we’re of And spend on second the be And XX%, that’s is and as how

Tycho Peterson

up growth guess, mix you – that there. the And good kind question of a rate over can of took going, you’re business next you scale to to of then gene up that talk making or X? you do And my from on then, kind investments precursor obviously, see Where I last the faster? a a little perspective year was that therapy,

Tony Hunt

the that news we’re mAb the good we’re our all processes are so on of into it – using is scale-up the the business are going today products the and so of investments gene making, into going Yeah, therapy. all

will say, of vector viral on the we’re on more technology upstream suited supplementing as to gene huge with are even the portfolio – of products therapy Now, applications existing think a side that we a gene would like our impact products have our I TFDF therapy side.

positive. a really business, that our this use upside very looking there So focus technology Technologies see think an that’s in we put how where is you on therapy. We going in gene can C to to be very,

So we roll some fairly think will us. we’re close able be out to unique being to applications that for

are really team. on ahead viral on that’s dedicated I than, our that’s And think upside. of applications side and gene to And demand areas focused also piece. different anything mentioned in we these as in helping view our I helping individuals helping the the call, vector team are the there COVID our commercial because have the gene of field beyond organization, stay where a a it’s customers, some sales now capacity whether of more market, mAbs, we experts prior making company sure point a we say that’s therapy that therapy. regular don’t biosimilars, can therapy really we in see have gene that from So do it’s

Tycho Peterson

congrats and color the on the for Thanks Great. quarter. again

Tony Hunt

you. Thank

Operator

of go Jacob Johnson ahead. Please question line Stephens. next The from the is with

Jacob Johnson

Hey, vaccine second I pretty customer thanks terms included base remember the the into for sales correctly, taking vaccine a as of think most the Tony, into seeing you’re work if question. kind is we I workflow? significant in first, activity spectrum’s guess, this the filtration of half, I amount where look of

Tony Hunt

products Jacob, the being used processes. mAb the vaccine our in across it’s all and know, I are board, in filtration Yeah,

ATF our So sheet, products, just flat fiber – our our it’s our portfolio, it’s not systems. it’s hollow all it’s and

which are used, encouraging. of our all being is really products So

Jacob Johnson

far can you COVID-XX really is it then near-term lot like kind now. and antibodies? a market activity. reported quarter, bioprocessing like so monoclonal related that But It you’re gene in this seeing who’s is of And already on right seems And strong touched it. growth of the Got therapy. the from on everybody in then the cell expand seems you

Tony Hunt

are well. The markets Yeah. mAb still doing

went out our projects you little – a products talked processes. on our So of about remember, about of our bit it’s of QX. there from systems have, A into think lot some we – call, last we when portfolio go it’s the into pre-packed that whether ATF was we columns, which QX push that perfusion

So that actually happened.

so all And see workforce. so we for of small That’s our very very were a year few and those strong because by that a ATF second we’re to months companies are line. going the back, projects or product a of delayed closing of coming seeing half

that the healthy. So think mAb is I market

recombinant biotech I been have is hard much the would does run. within gauge to how activities. programs over is impact COVID-related big think CDMOs, a diverted being piece say how mAb And to protein that the capacity that

performance strength the the COVID, played combination of It’s therapy side. the well So and for gene mAb between quite Repligen. in think I out on solid

Jacob Johnson

questions. I’ll Thanks the there. it leave for taking

Tony Hunt

problem. No

Operator

is go Blair. William next with the Please from of The question Kreger John line ahead.

John Kreger

percentage very to be us will remind much. you vaccine likely your year? a year, would you order end of what what normal that thanks up be and flow could think percentage Hi, Tony, in this related

Tony Hunt

Yeah.

So able X% vaccines. like be, I’m will think would second would diagnostics, answer be XX%, be But total And percent. normal therapeutics, it number. X% revenue because way to the the the around would would so to COVID, XXXX know I not best that be our to I I be think don’t in the the it of question, going typically, just part of be

X because adding I not. think about you say, of is those probably our So probably But come revenue of from we’re can’t programs. it’s it’s all adding – impact on you going a to another X% vaccines, points gives about, of if Hopefully, growth COVID, the that to bridge. we’re

John Kreger

does. you. It Thank

it to in back very did at is Asia kind point? Sounds well. say Would recovery you like or mode China of and that’s still normal this

Tony Hunt

you a on is of I expect. back back I being in little in definitely went that’s in to it’s normal we normal. – as think one a a there’s India India of the into lot Japan, going But Korea, can shutdown. to right? And mean, India. really China, no QX, to best saw activity back that well, it’s slow, at in end there’s as

the India So for moving But X countries X say spot Asia’s back where levels other been the of I to not real – is quite would probably a areas us. bright are.

John Kreger

still strategy to then, and of would think to your that of I given XXXX are curious you open at sort relationships, beyond? up if that pandemic? or commercial product tell some new efforts changed can your or us Great, new able you you. thank the – pushed And with do Flow the all, gotten lastly, into I’m has

Tony Hunt

most areas the been challenging. of the one that’s probably that’s think I Yeah,

really have a field great applications team. we So

an more trials they because mainly I were think We that done programs. that no we There’s really get specific critical, as gone in and are in than definitely doing up. June companies right, onsite July that technology, want of view it’s But to evaluation May. doing April, that’s trials a March, doubt of

harder. much I products think to the ability tested new get is

will getting we’re half doing the going in probably going. terms of And second evaluations do be the year, quality in products and we so, our of while quantity to – than new more

do if definitely that’s customer – it’s together. unlikely John. in a to a let’s And study challenge, a think have, nice a it’s to really that it’s say is and going I on come

volume So that ago. of a done it’s team more is very the of the I year we’re think doing. critical the studies not trials have we and And busy. in like would But we’re running that what is

John Kreger

Interesting.

thank Okay, you.

Operator

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

Matthew Hewitt

strong quarter. the on Congratulations morning. Good

Tony Hunt

Thanks, Matt.

Matthew Hewitt

One housecleaning that a of fold first, will will into new item that the be contribution, existing bucket EMT or one the buckets?

Tony Hunt

filtration probably No, I we’ll the it end bucket. up putting into think

Jon Snodgres

Yeah.

Matthew Hewitt

Are to to really ramp there? you that? then track. FlowVPE, preliminary hear efforts the orders for to to formal the take are Or going great Okay, great. starting start And on launch to that’s still wait it’s you until

Tony Hunt

Yeah, good question.

product I people an So forget works the talk sometimes the that well. when the marketplace next about about FlowVPE, have think really in fact generation existing we we that

around activity half product to crossover the improve towards footprint, be it. through FlowVPE get which the smaller we’ll you of So been we order to more first the of is existing encouraging use this generation existing product. version intuitive software capability, able year. point a customers the product, really make a in the how end then, the the of to next year, when are terms continuing And to has But the with of move

Matthew Hewitt

then, EBITDA be about maybe timing a that, up there. just hit like you thing made same final, guys back back to EBITDA margin faster you’re we some and and it Or that? Is here. it think going XX% quarters one think sounds time to It And of will time? about the we doing you. Thank this the couple XX% pops great. get should margins, That’s you the quarter investments. help last Thanks. us How then the a

Tony Hunt

Jon. I’ll over it I’ll start and hand to

need you to on of of I make at we the what’s more kind where it’s think and – view, point going around from really look in investments. market our have to

going we making investments commercial to the in be, need of we’re the keep so, our to so in to have where lead times appropriate add people internally/externally the more individuals always to operations organization. that balance they And drive, right

of a see function I that’s markets. obviously, now, demand. market So right see the how And think strong we we really

We add. have he Jon to when wants invest. back bounce say will It’s not sure has to comments XX%. to additional hard I’m to some it

Jon Snodgres

on little a add little of I for can XXXX. specifics like more sounds looking mean, color. it a I bit you’re Yeah, bit

I If up might year at pretty starting points ending think at look where overall. our for are point we looking the next good for finish year, those you

gives want of we obviously, demand, so, ahead sense And of we’ll for And you one be market as of, stay investments. it’s a We where always phasing XXXX. Tony of a that mentioned. step kind think to

give heading We’re to I of the now. think in right helpful. very we’ll point. That’s able But into clarity starting now, you. budget future cycle And on you our calls, kind more be Thank that Matt. for that’s

Operator

any like session. [Operator turn conference Instructions] closing Hunt This over to Tony would I to concludes our back for remarks. the you. Thank question-and-answer Mr.

Tony Hunt

on, for do to quickly, back everybody November. look Obviously, execution. to thank in this for the catching the second with us us, weeks on just just And the Lots coming us. I QX forward a joining in first year year. up for So great half great half and call the of to everybody over of want around

everybody. thanks so, And

Operator

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

now You may disconnect.