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Repligen (RGEN)

Participants
Tony Hunt President, Chief Executive Officer
Jon Snodgres Chief Financial Officer
Sondra Newman Head of Investor Relations
Dan Arias Stifel
Jacob Johnson Stephens
Julia Qin JP Morgan
Paul Knight Keybanc
Matt Hewitt Craig Hallum Capital
Brandon Couillard Jefferies
Ram Selvaraju HC Wainwright
Call transcript
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Operator

Good day ladies and gentlemen and welcome to Repligen Corporation’s fourth quarter of 2021 earnings conference call. My name is Chad and I will be your coordinator. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note that there will be a question and answer session following the company’s formal remarks. you your so telephone question, then pressing a on one keypad. ask may by do star To In order two to ask time. questions, accommodate all individuals will a who be limit to questions a there at wish to also Please today’s being event recorded. note is the to for Sondra of now Head to for Relations call, over turn would your call I Repligen. Newman, Investor like host today’s Please go ahead.

Sondra Newman

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

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

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

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

I’ll over to Now call the turn Hunt. Tony

Tony Hunt

Sondra. welcome year-end everybody thanks morning Great, our and XXXX Good update. to

finished are way We organic quarter, delighted in XX% the year, year for XX% coming company for full with growth in the the organic the we growth at with off overall XX%. growth XXXX the and fourth

highly in with quarter base customers on the the for to our enabling technologies. of we the Our continues business growth an was for for core continued bioprocess to of products as our company and year, Overall, reflecting XX% deliver accelerated our COVID year XX% growth demand strategy outstanding top with above-market XXXX business tailwinds. execute on differentiated

highlights. the Let’s cover of some key

the front, On the we management with position Avitide with deal. acquisition, our Solutions deal, strengthened proteins with in infiltration the M&A BioFlex market in the and fluid Polymem

customers meaningful the increased being also very ongoing approximately $XXX leading bioprocessing, share key our across in reputation all three industry positioned The a and manufacturers. gene capacity COVID the well lines. many innovation targeting between and therapy the a Operationally, company enter as product this gene growth. to a with increased This market are with in of in support which recognition, portfolio pandemic strong take capacity our our products, additional We leader in exceptional growth, to with delivering against nine-fold XXXX our the new adoption as to we base us of growing brand a driver major supported business allowed way million the therapy. by vaccine we was fight product

and M&A COVID Our to in over our XXXX, by business allowed billion to $X has driven market XXXX total billion that in acceleration, $X.X us from addressable market markets. expansion, increased expand significantly base

Finally, XXXX sustainability We first in safety, of published was and QX. DEI. area all commitment our the report sustainability in increased about

the the and at baseline diversity key use sites, launch in XXX% report XXXX, our renewable highlights renewable focus energy inclusion to of and we reduction recycling include initiatives, on to Some the conversion four In a DEI XX% sites, moving in and carbon programs. energy XXXX, at will single of in our year efforts XXX% emissions our additional initiative. versus packaging,

few increasing for building minutes the beginning that out our have QX I strategic year. one into initiatives was spend to the jumping and unit growth. our around around support our was Three technologies was pipeline, business full around four of disruptive integrating we highlights highlighted EMT, Repligen. and launching on traction Before year, capacity in ARTeSYN at and Number want was the a Number R&D market from two business our into NMS to around gene therapy. our

our with start on Let’s progress capacity.

in capacity our to and expand lines. Our was especially the was our goal, like rapidly of expansion fiber The at site over the the combination filtration peers, of our Polymem our nine-fold. made area increased of many where significant, capacity programs progress we acquisition hollow the across product Rancho

industry complete we our of from combination XX% the an last capacity space of expansion of of and filtration spend Marlborough million we fluid facility year columns. of our our gene in for new expect $XX in Rancho new we filtration majority growth therapy additional XXXX. to application with XX% XXXX. management our This on our in XXX increased the efforts growth customers and European the and the during We center OPUS our We north for driven accomplished in first adding With year, In to from site efficiency a increased plans. by end manufacturing also the to Massachusetts. presence our increased expansion close about XXXX, a million to for gene prepacked process portfolios accounts market had Asia. more and year. adding opening we up with Breda workforce. be approximately our focused and expect therapy, analytics qualified center on production In running and finished Hopkington, of brought up XX% assembly includes XX successfully customers, up XXXX, here scale-up, cell European and and online accounts, acquiring $XX XX and came by Much to of XXXX We our focus in in and of significant what overall in traction

In continue be in three programs. a to products New on core strategy. our overall pillar team key our delivered R&D XXXX,

inline launching around base analytics is platform, was on a quickly which the first The by system our GMP-compliant adopted FlowVPX been has manufacturing floor. the which customer

monoclonal effectively to to around Purolite the was standardized with overcoming Second a and launch A purify first challenges, industry’s was and antibodies, our aggregation deliver on ARTeSYN Navigo pH-sensitive Sciences chromatography custom Life optimizing protein third the of resin working to portfolio systems. systems

year of our R&D as a of bioprocessing strong the filtration on another AAV be reinforcing to expanding XXXX as family we our resins, which systems, leader. we ARTeSYN expect and launching week, for focus position this family announced We innovation earlier in

XXXX ARTeSYN Repligen our with NMS products. use New into Waterford, the business key while pro Finally was came on for single a The to way Ireland in of integration to the integration internal us York Park, for expected, performance in and the flow Clifton front, in approximately combined EMT of paths both up XX% industry. and as we and very meaningful successfully growing sites the basis in manufacturing forma address of our integration The build-out a ARTeSYN a of need completed contributing Repligen. EMT, focus the on

a products addition we plan into and products Solutions to the the XXXX, here broad of these we a With late of move BioFlex in company in for new portfolio have now fluid XXXX. management franchise

demonstrating revenue traction from facility. and and of our by demand vaccine XX% for four XX delivering the business growth, products, quarter the year had performance, revenue growth accelerated Within especially our we second quarter last QX quarter. position all quarter. total performance a growth in nearly output the for points Moving and year, in driven therapy in demand revenues COVID $XXX increased increased our as XX% XX%,with full half our production and now coming overall million reported base COVID quarter of to exceptional the for in in COVID-related business Polymem the reinforcing from increased our with up revenues XX% the record and were or in today, accounted also year. gene sales of franchises customers approximately of market

the revenue. year, our For revenues COVID of increased to overall million, representing $XXX XX%

demand strong see to $XXX to base year. and COVID accounts for our continued COVID this that expect $XXX contribute from revenues the company We customer million million will in

for orders XX% were were up were growing stellar with year-on-year over the business base orders orders down a the In at of the QX majority orders QX COVID of a business front, base XXXX. we when the placed. in tough comp Sequentially, up XX% year On quarter, COVID off approximately orders following finished XX%. XXXX

in is line order and COVID over for $XXX XXXX million much with Our expectations our year. the now book for very

this Moving prepacked proteins systems, to report now ARTeSYN are from in into date chromatography placing of to will chromatography, better and Avitide our to been franchise-level Affinity columns, with business, franchise resins, our we align have of Affinity and franchise which performance, where ligands our consist as OPUS revenue ELISA chromatography kits.

the as columns commercial customers XX% demand if Avitide by continues challenge In have seen are OPUS our lead more and had the we up year up throughout quarter with stage XX%. dealing including into revenues XX% contribution and solid largest the be chromatography, from year OPUS availability XX approximately and Our we chromatography put OPUS vaccines. included. on XXXX the was excluding processes, these extended times for for year, were the resin suppliers. COVID a resins, quarter from top for late full The main strong our and to Affinity business and Within products increased the

accelerate supply this in XXXX, we OPUS growth half move of We year. will which will expect as the that resin through for improve the second issue

our of in expect to the chromatography XX% grow range XX% We for franchise XXXX. to

year fronts. strong year quarter Our executed the Affinity finished XXXX was and XX% for approximately excluded. franchise and XX% another and resins many pivotal had we as proteins Avitide strategically a included with on us up

new demand high from NGL be in Cytiva; launched Overall, third, decrease continued we Avitide, will proteins in be mostly X% for down the increasing our supply we Cytiva and ligands. Affinity new marketplace ligand In developed Avitide XXXX. and will First, and and by acquired that traction expect offset pH with to resin content. approximately XXXX, NGL expect second, with revenue we agreement our Purolite; a we we signed a our

therapy growth KrosFlo cassette, Our the of up and for The speccing-in demand. year. the commercial sheet flat for for filtration franchise XCell was our the Key over the Repligen our marketplace gene and momentum drugs, the quarter the and year of generation in the in new the included the FS the XXX% continued into big story sheet of more quarter XXXX, in ATF system highlights in driver XXX% the than launch next cassettes, hollow flat products. acceleration quarter fiber systems and for in multiple was

the in of For the about significant revenues vaccine in our strong growth in in expect we grow of franchise saw year, XX% XX% the With franchise overall XX% filtration range to the momentum comprised marketplace, will revenue. COVID XXXX. we which

had was year outstanding cell analytics quarter especially an and our QX for new technology of quarter therapy. application for in XX% commercial Finally, franchise has approximately and VP areas, new revenues process year. account gene and represented into the expanded Revenue over and driving XXXX. The on our development, the which XX% growth in team focused XX%

Overall, encouraged base FlowVPX to XX% XX%. the strong XX% of business we year XX% XX% we company of to by strong to in including XX%. growth and expect to be growth of to analytics at with growth range continue XXXX, be XXXX organic XX% another grow adoption in the expect of for to approximately and We the

strategic the accelerating BioFlex Polymem, finally about and will our our around Number will next be around following. on launching the Solutions. and are will new further gene three accounts. confident in to well hitting traction years, to resins As AAV we year, four growth successfully share we out therapy ARTeSYN in businesses. XXXX. move gain priorities goal one number Number dollars integrating building be cell TFF by including Number be around of three support the systems, positioned our center products, we capacity will are bioprocessing through to two will our and billion and believe five at market and We be a over continued Avitide on

in want and X,XXX-plus including year. the their to to commitment wish Polymem, our our also and I look for around part as shareholders concluding, Avitide, strong customers new for leadership our employees here loyal their at Before globe, and colleagues BioFlex forward year Solutions last XXXX. in success to Repligen’s another thank delivering I we recognize

Jon to a Now call the performance. report for like to on turn over I’d financial our

Jon Snodgres

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

As we well emphasized $XXX.X growth. as and record in have year, as million our $XXX.X press million release in of revenue the delivered reporting full this for earnings strong again quarter morning, the

base business was for Our quarter the highlight, XX% up XX% the year. strength a in and

COVID continued our vaccine XX% the total technologies revenue with and the programs of COVID XX% and accounting programs our to total support We with also of revenue for therapeutic in quarter the year. for

XX% spent was growth of been capacity we’ve capacity. year-over-year, million an on our year $XX XX% In of XXXX, executed in initiatives. has addition to at numerous approximately incredibly delivering Repligen capex, it outstanding investment revenue in In about expansion we fulfilling which as

to development our the through innovative We market initiatives. products also several product brought internal new

to continued over growing came of XX% revenue our XXXX launches our of X% and last base seven from spend revenue product in approximately R&D We major years. on the

to addition, revenue. and gene our In relationships we our therapy of in continued represented customers cell total XX% expand XXXX with who

have technologies. and we integrating continued progress new our in with significant acquiring businesses Finally, and

Solutions in completed have fiber pleased an previous closed Avitide, strategic M&A of BioFlex specialist, acquisition and products ligand our acquisition of fluid in impressive year. portfolio XX, also to expanding were Polymem year to adds are December which management our a our The Affinity hollow on We bringing on in-house. with and acquisitions of developer, the earlier deals already supplier BioFlex

Hopkington, X live our going with SAP in here February. and locations and selling India we’ve implementation, Phase XXXX offices Korea Auburn and completed in our Massachusetts addition, early our In

our to transitioning XXXX Now full fourth quarter year commentary. and revenue

XX% represents To to reported and XX% our two-point two context we revenue with growth, revenue inorganic fourth base of of points quarter growth, and year for of exchange our XX% of further points business contributed five tailwind. had $XXX.X and a foreign XX For driving headwind. quarter, contributed XX reported points growth acquisition approximately revenue $XXX.X COVID exchange revenue foreign XX and representing points. growth of million, of and acquisition add organic fourth organic accounting our of with million programs full In XXXX, growth inorganic XX%, points

their year report be to Looking week, viewpoint, XX-K resin reported deeper This franchise COVID base effect, this the process franchise historical streams into components streams at reporting full shifting in and points. products accounted XX%, proteins at our into franchise business. product available franchise for contributed our XXXX effective are XXX%, chromatography year positioning XX%, reference. XX% of growth, our revenues Affinity in in for With in growth a we chromatography. our are and our full points XX shift our XX reporting with proteins filtration change we that will revenue this and for this from at business reporting expected our better align market From analytics total we filed

continue from in grew each to increased world our total regions. XX%, global growth we Revenues our business, Europe America three XX%. As Asia-rest XXXX revenue revenue XXXX, positive total Europe XXX%, at and Asia our our business. of see XX% of it regional year represented full America relates represented Concerning and to the for represented North North regional business full for year of distribution XX%, grew global XX%, traction of

margin improvement in Adjusted $XXX.X of XX% or million, margin XX.X%, of facilities million, compared $XXX.X million level our same at was significantly the fourth XXXX. first grew XXXX in margin same driven finished the Adjusted statement, most gross million adjusted XXXX. Now XXXX. gross improvement our quarter for $XXX.X period the in leverage investments, basis from income in full year strong The gross gross profit of compared to capacity an an to XXX fourth which by volume to a year-over-year. XXXX outpaced of the the profit was with the XXXX year point XXXX. quarter XX% or for XX.X% $XX.X of Adjusted moving in XX.X% half line increase for down increase full period in in was gross

year operating transitioning and down were X.X% and expenses, expenses revenue to Now of total the X.X% quarter full P&L the for adjusted development XXXX fourth respectively. research adjusted and

were ATF systems. launch flat including ligand, our increases ARTeSYN and the growth XXXX to facilities systems, Affinity and R&D increases critical level XXXX investments the timing filtration high dollar acquisitions KrosFlo year and products, supporting of quarter were total full continuing periods. several XX% Adjusted to spend lab were SG&A dollar pH Our The approximately chromatography our innovative of personnel, in the XCell our controllers, to skill same to sheet configurable in FlowVPX, expenses both related and term in for long new and XXXX XX% compared the expectations. of equipment year-over-year revenue expansion XX% fourth XXXX

EPS, XXXX increase to compared million, XX.X% for compared income full XXXX. indicative an $XXX.X was XXX income basis earnings an increase an margin business for strong Adjusted of the full expansion income to compared net million $XX.X XX% or fourth $XXX.X compared compared compared million, an fourth moving increase million increases at was year $X.XX the the the or XXXX of more for XX% of or improvement share, XXX% quarter full for million, increased Adjusted fourth Now margin for compared per net XXXX. quarter. of the to to adjusted million to operating quarter $X.XX, at quarter million, XXXX points of than investments. an quarter $X.XX in Adjusted XX% XX% adjusted XXXX $XX.X or and fully period. increase year increase million XXXX. $X.XX $XXX.X XX.X%, XXX% period. of quarter to XXXX finished of of of the $XX.X for income in XXX of XX%, to the Adjusted volume and XXXX profit XXXX to XXXX. year finished XXXX an our of an are $XX.X was XX.X% compared operating $X.XX XXXX overall increase the operating in points full for fourth fourth EPS fourth leverage EPS operating year offsetting to full or XXXX XXXX of Adjusted $XX.X for increase for impact quarter basis Adjusted fully operating of on was diluted or Adjusted the diluted the year was margin to XXXX. $X.XX an the Adjusted

Our cash impact expenses. XX, are from to on fourth the deal acquisition our year million totaled metrics, transition including and and BioFlex cash related cash equivalents, our full which $XXX.X XXXX, December at GAAP quarter I’ll Solutions XXXX guidance. now

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

unless at $XXX previously million, million that Avitide are fluctuations keep growing XX%, that on the projection million, to mentioned, full to revenue foreign revenue business guidance in will As of may we $XXX $XXX closed $XXX XX%, beyond growing XXXX a to all and also in to sales Please XXXX headwind to XXXX, in million non-GAAP. financial $XXX otherwise XXXX and our of revenue noted, XXXX range to COVID X% impacted XX% be acquisition revenue XX% year guidance be to million not the million. our exchange our base a $XX impact discussed company growth $XXX million XX% by current includes and expanded we’ve rates full metric, X% of growth guidance revenue This XX%. and inclusive include reported organic GAAP bioprocessing non-organic impact Solutions does market and at of of business, of capacity $XX pursue. in of year in Polymem, and the in are related Based representing the to the created the acquisitions future strength the of guidance, at of XX% BioFlex acquisitions we that setting that any our may million potential mind we on seeing

XX%. are our gross setting at to XXXX We adjusted margin XX% guidance

for adjusted with to the the for range of and million of expense adjusted million margins year. other revenue the operating expect We Adjusted zero the in to to income be in be XX.X% operating $XXX is range expected income XX.X% of year. to $XXX

approximately adjusted of year. the XX% We expect income pre-tax to income XXXX adjusted tax be for expense

adjusted million of per to in million, range in and $X.XX of fully the are share. net diluted We $XXX setting range the income EPS $X.XX guidance $XXX to adjusted guidance

The estimated shares million expected Our $XX.X $XX EPS million range XX.X intangible and Adjusted with average to weighted million end company $XX.X to million million into $XX is diluted invest outstanding expenditures the reflects depreciation in XXXX. adjusted at guidance XXXX. expenses $XXX amortization million to and $XXX fully of expected be capital to expects respectively. an EBITDA approximately year in million

GAAP questions. of our funded range and equivalents, cash expect capex to million financial to call generation investments update, be the our to million a Operator lines turn year-end the and metric, guidance in This I $XXX open fully cash completes from We being cash to and by $XXX will the the now with back our report for operations.

Operator

[Operator will question go Please The come with first Stifel. instructions] ahead. from Dan Arias

Dan Arias

questions. you that color filtration Good sort on the XXX% terms about quite so that gains for filtration, XX%, might of determine some comment thinking able share? on thanks are the to put but where and growth of things place, that got in that be the about maybe lynchpins you you difficult some then market franchise potential XX% of that think guys, that a obviously is outlook Tony, touch of you the obviously is think is well. the take You areas there. to made very growth, your pretty the lands you Can morning the are some in one to dynamics looking for where still comp just just fact doing business just to

Tony Hunt

COVID when ATF. flat think sheet look I we’re the the Yes, for traction with XX% business, business, traction in at base XXXX. is cassette real component, you filtration our we’re seeing projected so Dan, the real growth seeing XX% to here filtration, Outside with

the commercial over it’s a year, had, and would about we’ve four I the you As number to into of last four three say our which wins positive maybe success, filtration think lot years, move go or think is franchise, so now beginning commercial very of clinical months noted, I a in the side. when we the of indication, last a three, into

think XX% we good is So XX% yes, a to number.

we but it’s the and way, if in sheet portfolio, to I our ATF flat any up it’s cassette, or our we’ll be think move revise our to As systems. we maybe shape it’s probably able through year, see that form, reiterate,

We’re year, really we of them us systems XXXX. into little way out. happy launched with of year. a the think many our filled last a fuel down bit that the talked element so as We of XX I give business about go R&D lot products last additional has We the through filtration portfolio, just

Dan Arias

from work and momentum up to body growth then answer, I and of Okay, does seeing accounts. cell question if to existing leads is a terms about able pretty but and just good. just that buckets, might suppose acquiring it’s hard then is maybe and customers stage, earlier of are you XXXX, your like stage to into how think just--that here you line scales The just feel of this there existing new new probably obviously from in coming thinking there and a those the you in gene it this therapy. customers thought put an of on later or question some because what you’re see two sort to

Tony Hunt

customers. new maybe with let’s the start Yes,

expectation a Our we’ll XXXX. we XXXX at add similar continue as pace in did is to in

we reason why no a move Our at so similar of there’s portfolio pace. can’t has expanded, products

that scale-up approval. than--so see. things the on, a which One industry I the two going think we of encouraging, need happening is stage industry through opportunities getting in more we to what really is lot see but final also to there’s more more needs the late there’s

see uptick think year. year the with of clinical real the more in of saw of because I our in last yes, comes kind the at and business half gene to litmus is I look second half therapy think versus that’s the But momentum first half, approvals, cell in second test, approvals that last the we more with more pipeline. we a

Dan Arias

gene in there but efficacy be thought, get or that Tony, the company your or is and any--we of look shape? companies overall Just good Has business something, order of it to at high etc. big terms cell the the way the be a any showed place industry’s markets, able in lot picture finish safety that about smooth are is when through of to a in just and questions book working dealing one taking things at up tell, in a we would sailing your that in might level you pretty with because issues,

Tony Hunt

I is in overall good the think Yes, industry shape.

more robust coming we I think order side. and the slowdown comment our approvals look really into seen - earlier about is We really actually gene important. therapy have at book XXXX, the no seeing on cell

Dan Arias

a thanks Okay, bunch.

Operator

Jacob the and you, Please next ahead. Stephens. from Thank question will with come Johnson go

Jacob Johnson

to Tony, $X what Can you gene just that how deck like to everybody. so now, out from maybe billion good increase is and morning things investor double. expand something your of flush new your comments cell Hey, TAMs COVID and drove your went your up than follow billion-plus base business, more maybe just $X.X maybe on on on you that much mentioned during prepared comments, in therapy?

Tony Hunt

opens probably clearly probably $X the industry, we’ve now. TAM, done, have has the products of reiterate them billion on launched added year, would everything I say we’ve acquisitions or didn’t Everything When just else that I’ll more opens XX quite gene the the billion market again TAM last for week new up came and parts XX%, of just in, increased resins is businesses onto $X rate probably the expanded would the we Yes, again added our into, TAM. else us. the our that markets. Affinity jumped keep at that filtration of launching whole chromatography, you expanded double markets up therapy, we’ve It COVID say. the M&A so impact TAM I adding from probably now but that additional cell products into and for COVID, a this just is

Jacob Johnson

you super guys it, asked appreciate the Repligen? been question, level long what a is margin opportunity profile of $X the sticking about how of the higher I’ve billion kind level? profile like should XXXX just investors the at as at maybe think of look margin side, and that term to something that’s Got a a on Then how I you term revenue follow-up, business, should but helpful. revenues, get with If billion the margin think growth about recently long target your

Jon Snodgres

this Jon peers it’s a is you the when We our at similar year here. story this are a what across industry, look our look lot saying very - to margins of Jacob, interesting now. it’s right and

started that year, catch our the board. to across we’ve very and we again revenue the had, investments up a story to the As finished consistent levels

able story. with been We’re as that really margins a market sure for way out over gross over--up year, and XXXX of long bit and basis up great think our last pleased margins; a are been that’s make growth here we so invest as fact, continue X,XXX there. matter little operating guided basis that years, of the really three I to we’re We points to business advantage the to operating positioned about take opportunities expand XXX to in points the this down we’ve the were a term well

the operating obviously get margin the on level at want look which think continue be that’s targets administrative build for that and we’re to to gross team, really to I have on well, opportunity us. trying go everything on good continue the to if margins, out have teams, will level, we dollar billion-dollar think we XX% Then to as forward. I those a keep we’ll today, but we there there be will billion really - aspirational the above capacity XX% continue a support level get as our continuing expansion I in our to so commercial think good above a to phase phase, and an investment as else up you infrastructure, to as R&D business we our well right now, above

Jacob Johnson

that, thanks for Perfect, Jon.

Operator

The Julia Please JP from next come with question go will ahead. Morgan. Qin

Julia Qin

you’re light I about market meaningful seeing orders I’ll called investors CRO pipeline. in concerned a out recent [indiscernible] high morning. have with slowdown in just backdrop companies question. impact good start earlier this any Many and biotech’s was if a some are level week. your regarding Hi, of volatility, wondering environment

Of on early could about be Repligen impact but funnel, more course activities recently on you the customer research if the probably great. is sits so talk and more downstream, that’d quoting stage we stage, that more your development just order than understand

Tony Hunt

is solid, so obviously not our quarter the seeing Julia, would the quarter. as side orders, take today every you looked sequentially as at they agree that, look what it at initial on up we’ll were from being see at this impact research first the half go gone look aside if you, the impact We in we’re orders side. very orders Yes, we’ve COVID is the more that but year base last year, I than bioprocessing any business of on and happens. of with If again through we our through and

based and is everything definitely see I guidance million. $XXX our on Our today, around we to think confidence $XXX some there’s million

Jon Snodgres

areas exceptional, the new look pipelines pipelines product [ph], clinical pipelines across of business. the gene and our therapy, And most right, MABs development across

Julia Qin

levels and and inventory out that reverse years you’ve line peer expect of as terms is of they contemplated to two this in about customer with that then past the is building in and this tailwind what called if in you’ve year. percentage in guidance seen, curious your in great, the channel, That’s inventory each well? five I’m what from just your

Tony Hunt

feels bioprocessing what assign to go Yes, build. reasonable similar I think trends, do pretty think through customers I we amount view. from everyone like an that witnessing to as see a of inventory in We’ll inventory the is year point so

in a product. for year, so really I is on us, probably, able has half think up inventory it’s don’t being availability down the worried inventory--say, product there think I as to disappeared, to were second about build last until build don’t sure get inventory going I happen that think concern For year. about this of slowing was people the

Julia Qin

it, Got you. thank

Operator

will Keybanc. Thank go you, ahead. and Paul with come from next Please the Knight question

Paul Knight

between line think therapy, your and What’s that, on firm you and overall you it X on in or Xx, the Then entire mentioned expansions capacity gene sheet for cell I Tony, flat the could is question - product new differentiator? comment second is of like and that? to the is Xx. biggest overall capacity driver

Tony Hunt

because capacity probably but a was it’s on we what product year probably probably is calculated line your haven’t accurate, little I exactly around the was so every increase capacity, last Yes, think different, the Xx. guesstimate average

the up though, were capacity needed build given lines us, there we really For some demand. that key COVID to product

will increase. adding a hollow and the being one you might up set lead with physical clearly and more three significantly about drive the think increases some about physical that was last down and what we I which nine-fold year the interesting have next was capacity I that think more came efficient it’s in the versus to capacity our capacity our really of fibers was in for highlighted us space five years year, What past. lot seen of people being from space, times This added. addition

really us, what as it’s a think no than and the Everybody that’s different for well. our is sign on are peers journey. doing positive I same

in have number gene you out I in primary products side, say large because products individual or gene naturally and therapy, lower therapy our the obviously our and What’s the as we’ve so get look filtration nice our technologies filtration what would cell just will those about with you therapy might think gene filtration. one call On that any with I of so of nice franchises, highly same the traction of some OPUS sheet a major and rest our a portfolio us, than combined we’ve really of portfolio, product. in growth percent columns is and not say as on portfolio the have I filtration, for of the and got driver cell nice with impact filtration therapy don’t would prepacked some Solo portfolio, always number differentiator. when VPE Flow differentiated there’s is driver products, would cell traction flat our I at don’t gene really got they the

Paul Knight

Okay, thanks.

Operator

next come Please Hewitt will Craig Matt with the Hallum from Capital go and you, Group. question ahead. Thank

Matt Hewitt

thank response for quickly manufacturing, that what and products see how launched AAV questions. recently new book? and Good those start the days, you you very the early order taking the resin heard could I but to morning it’s realize hitting from some think you for customers, initial of has you’ve been do the

Tony Hunt

for on expect we’ve to onto allows you I’d and cycles hold with improved lot the Matt, right that lots seeding column lots today, that it takes--you we’ve next resins and start customers a in the want question, lot versus Phase to positive. we Yes, longer focused chromatography even bullet, magic your space and the industry a process to We’ve that this see caustic know, the you where year, off the stage, which this when X, run resins. good that are to the quite anyone is it’s a more it get unfortunately, XXXX into incumbents and on and in programs launched. stability all news, just to marketplace the We get into are comes to that’s start. launched It’s want The there’s resins. then phase capacity a response well. chromatography as customers lot of year, later Phase the this well, later seeding. of has about year, products no X, evaluate really been to opportunities maybe differentiated the that They had very knows products

months said Repligen have the incredibly we products We as would I after think we these on five leader that of acquisition, three it. it, we the encouraging launched. did executed do me what’s for that is Avitide we’ve

people want teams right are about within our executing comments now. a sure at just my see R&D, to really it, high really R&D think we very I I level make

We’re that’s going hitting and the to our getting billion journey our help we’re a in us products just towards years. next few timelines, on launched,

Matt Hewitt

you then a those the in those gene would are those more stage driver a into for you growth cell shift going or Are revenues become you you’ve an times, products what involved? today, increase Where you characterize clinical obviously separately you mean or and it the line, it’s that are opportunities be Thank number of will actively and see great, where as starting you. key for based? That’s to different realm, and those in therapy, maybe mentioned commercial forward. early a still from ones going commercial do to

Tony Hunt

clinical. the are we’ve I today it last have--some customers scaled Yes, working opportunities that four clinical majority years of our moved in the would stage have trials. for Clearly say the later with the been into and the

have approvals in a As very months pipeline, that the clinical more drive revenue. it, will number that all in on if for, just need I one put for in really volume, that’s could with before when to but clinical approvals, see revenue earlier, that will be should you the a see Hard to the may revenue versus you’re see it it’s a you’re were programs clinical we commercial looking see consistent be wins the we of - us, I we drive obviously more more said you are so industry additional XX for in is Dan see application, it commercial what you lot if you we of currently year, ongoing. number but not increased revenue--if chatting clinical, and process, you’re think the that’s momentum this

Matt Hewitt

right, All it. Got thank you.

Operator

Brandon Couillard ahead. Please will from question Jefferies. from go next be The

Brandon Couillard

that your would vaccine it contribution Hey, COVID the doubled Europe. maybe right math than concentrated right, commercial last size more most in in assumption, the thanks. and of the I is assume you U.S. that and the Good of all, drivers Asia? morning. my Asia Tony, could on that the just year, looks mostly and of of team like first and Is elaborate if was your business Pac

Tony Hunt

so maybe Yes, commercial over with years. We’ve our the start commercial I’ll the increased organization few last really team.

last service. applications, XXX finished year field field we with between people almost sales, think I

I probably now few right in your last Asia. by don’t I number do by that so Asia question, in momentum of filtration we To of in XX over around--we has XXX, the first China, up think we’re I exact that probably in our have XXX. know would finish just Asia, people sales fantastic people the driven I the I in have there, the portfolio. QX, time predominantly team years. the say growth think the on been drivers it’s

significant companies U.S., say, to but We I expensive from big people say driver, main labor that a--you but times know last contribution, is accounts we moved in, Brandon, a accounts a and so vaccine CDMOs. COVID was columns, in and making in played customers a manufacturing. out their use their think prepacked COVID, manufacturing, of towards Asia vaccine in CDMOs the or want of is lot China, the COVID tend through but have had But a last way not manufacturing of would as as own in year year, the to some is bigger and in there the pack the have prepacked you have on there that Korea used some core companies number technology that countries of the that we lot are our implemented all so in our was definitely columns. where columns, Remember, India know, vaccine filtration there and is own have are others impact through up about our is--some signing it ended doing that

Brandon Couillard

and EPS in million for terms any should vaccine just ’XX, million of one quarter? Then of $XX $XX a you’d phasing at be we to direction to us ratable the helpful. Jon, give of expect and or That’s the kind margins revenues color in

Jon Snodgres

XX.X% fairly HX starting right our one again so to I’d view that’s say to up consistent say the at first level, an XX.X% a this finished year. and margin Then our it in run XX.X% year, capacity at to going opposed infrastructure throughout jump for Interestingly, coming how and in be expecting of adds to catching fairly revenue down guided the about the in hand we really of the I come the operating got on a catch-up we’re a good start consistent operating That’s to level. year. I’ll so year a point investments so question. year really say is - would Margins little level on in of you’re levels. the this I’d We’ve the faster would should I consistent the as to the say terms and and with XX%. XX% such. within of are year, going Tony expect be terms XX% range that’s and because the commercial finish, we full to margin story now reasonably on similar out obviously the into phase, though, volumes as off come margin, end gross in year, I’ll to Yes, on to we rate XX% adds you’ll other start because bit the throughout then and at that we’re margins, with maybe of we of on

Tony Hunt

Yes, million. I QX We’d think is the quarterly north might I’d half-second the year first the expect and then north was half on split $XX revenues, Brandon, of be we the second on know, that--you COVID to vaccine expect million of half and $XX of say assumption, be probably that type XX/XX little pretty a basis, a a lighter, half. reasonable so first

Brandon Couillard

Super, thank you.

Operator

with next question, Wainwright. come ahead. then one. will Please Selvaraju again, from press star if go please you The have Once Ram a question HC

Ram Selvaraju

questions. Thanks my taking much for very

ask XXXX that to into endemic of the wanted I by production $X pandemic possibility as reduced reduced demand, achieving does account vaccine your by XXXX, Firstly, status might the threshold shift vaccine point. guidance take billion-plus that to if COVID-XX revenue for

If you speak. which number comment battle-proof, extent to could just essentially is maybe so to that the

Tony Hunt

to reduction. with from very get modeled even XXXX so in there’s XXXX, billion-dollar COVID target, a that our type hit still a can at number confident look of dollars obviously--and that analysts, we’re November we talked of a perspective a we we XX% is and We about billion-plus. tailwind drop, can billion in this just back and long with model When we on XXXX but and Ram. our we confident question think about a great in of we’ve Yes, our that reduction type so still are

Jon Snodgres

in and It’s be in XX% just ’XX clear. another XXXX, to XX%

Ram Selvaraju

the therapy, bulk by and your AAV share of that used? products gene then the in building resins, particularly capital be resin from be expect think bioprocessing of you driven you and constrained within new your gene with side, demand was were on products, from how this for do I therapy take Great, in of the is that, a to if actually can would - be earlier, to gene wondering a therapy you questions market do context perspective competitors able kind reusable the the environment more on example asked

Tony Hunt

but launched over it therapy our that a Right and not share, vector. the it obviously but launched--and differentiated at no it time, differentiated. the see we the years the market and market for we’ll It’s types bring one obviously Repligen hope over some couple the that we’ll next expectation us really happen be years. the Affinity overnight, to more just out There decide going that we market years, Ram. look we’ll gene share continue when take now, was one dominant know, against our to next going are the to we will build for AAV there, next to two other of obviously versus vectors, take clearly what it’s resins to is yes, years. the two would portfolio. dominant to coming expect to other of is product up resins to from AAV in to resins market day, other the competition, more we three so share couple when take Yes, Affinity so important products are take we did would we We so launched AAV think--you They’re

Ram Selvaraju

Thank you.

Operator

like would Tony back Thank conference ladies turn to you, over session. Hunt closing answer any and for I our gentlemen, remarks. this concludes and the and to question

Tony Hunt

away, catching is thanks again us this so we’ll everybody May, and up for chat and again too not to like just joining morning with forward everybody thank I’d later. to look in which far

Operator

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

disconnect. may You now