Repligen (RGEN) 27 Apr 222022 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to Repligen Corporation's First Quarter of 2022 Earnings Conference Call. My name is Vaishnavi and I will be your operator. All participants will be in a listen-only mode. [Operator Instructions]. Please note that this event is recorded. to call, call Investor Sondra Repligen. like host to Relations now today's for Newman, would turn over the your for I Head of go Please ahead.

our morning, to Thank And performance and financial we Jon current will Repligen's provide questions. three-month CFO, XX, us QX welcome financial Vaishnavi. March the covering President everyone have deliver ended Tony We'll you, call. highlights with And for Hunt, This who and year. XXXX. report we'll period and guidance be business the and our Snodgres, CEO, our also address for then

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

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

results Repligen's to call, release posted that press the guidance. this this non-GAAP providing Reconciliations which are non-GAAP is we in included financial and we During are of measures GAAP to website. morning, issued

profit better be income margin, operating of the consideration, as quarter expenses today's EBITDA on to and earnings include growth SG&A, tax report margin, and These at currency, peers expect revenue but filing investors not investment evaluating current opportunities. adjusted We and performance results for and alternative adjusted and financial expense, operating and income income to performance Non-GAAP today. as the historical to against be share, are Repligen's gross in net figures contingent R&D an to intended XX-Q should measures, gross enable benchmark measures later including operating the as following: the GAAP viewed EBITDA. per when well constant

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

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

growth this for story and you antibody sequentially except franchises company, fourth which our an press XX% delivered was for flat with in therapy time, release XX% quarter revenues robust markets, on the our up core our and XXX% XXXX. from proteins year-over-year first expected. up revenue in therapy million over gene delivered strength for saw the first up base an monoclonal quarter versus increasing we topping business, outstanding as growth the morning, operating along of and We in contribution gross came each in our Gene quarter of over which XX% excellent As The margins. $XXX was saw year-over-year the continued the growth, accounts. margins was with

we As time. stayed capacity best demand manufacturing for our lead on out building to industry in increase continues the focused products, with have

under us the us. lead XX share to Our lead This allowed continue times vast be our take to weeks. to especially of the programs for market, capacity in to filtration, decrease majority expansion competitive has products enabled advantage to expect we in us for a and times have bioprocessing

completed therapy launched products our note, through the early discuss later. related a new Finally, of serve highlight being we're off start three gene introductions, new the to to year well of also pleased in customers, a through a Avitide R&D performance contributions I'll team, launched as product which our to resins XXXX. with as the M&A good with we're AAV the On

the of of the base of the X, we finished COVID a perspective, business. contribution given accounted only the with for strength orders M&A quarter. our From contributed combined ratio of highlights X% our This encouraging our quarter inorganic book. overall order orders revenue and an real book-to-bill in product which XX% is New

XX% increased XX% were million, first the revenues $XX orders over quarter representing north XX% quarter total of slightly first COVID of year-over-year the sequentially of and Our for versus quarter last fourth year. our quarter revenue.

now seeing our or their the We vaccine demand remainder this signs COVID demand either are have impacted customers that rate. vaccination been for Many the XXXX. has into demand of in shifted slowdown their of by COVID year reduced

beginning impact approximately out new COVID quarter, of XXXX. push XX% The million into we impact in book order of orders. the saw orders canceled the essentially our offset the Within $XXX the of COVID at of XXXX quarter

that from Omicron various saw are less a came effective We canceled majority vaccines strains. the that orders of also against

In largest million. COVID that and our by to XXXX for expect into now majority from XX% orders full-year been of have vaccine versus $XXX out XXXX came decline year revenues addition, around the come We about COVID last in manufacturers. pushed

of the XXXX year, finished We very For our revenue full revenues with our our positive. very the and XX% will approximately year. remains we XX% COVID first book overall last anticipate versus represent of for strong outlook a order total our business for that base quarter

company our Our XX% offsets COVID are to for $XXX from million the of $XXX projecting business base now we initial from XX% of decrease, a significantly to even grow in than the now the of guidance approximately business, expected initial be updated reflects guidance year. guidance half to an with February. at our at our adjustment our X% in overall XX% XX%, to projected up million, greater base confidence in to revenues increase This which beginning less

new cell and to Three therapy lead around around and penetrate start areas our our four few with decreasing and lead and was for four the February, of start we minutes focus the was additional out jumping our and outlined capacity progress capacity review on But Two key spend company. was in building seeding let's gene into Number one Before integrating successfully continuing quarter, areas products times. supporting XXXX acquisitions. developing to I Back wanted times. win and priority for and accounts. XXXX. was to a to

the our fibers, increase ATF online. capacity Our our focus systems. Rancho, two sheet flow bring hollow cassettes, quarters over is and California one This and to for Mass. will to next Marlborough, cross expansions flat

We Hopkington, will Mass. our fluid business. assembly our management in open support to up also center first

capacity XXXX As of mentioned again XXXX the lead and here programs previously, is the of in expansion impact on our times.

We are half lead in of dramatically the XX year than quite less first reducing times weeks. to this

further reduce During times expect capacity. the even lead additional second half, on we bring our we will as

integration, and been BioFlex the of and is M&A has focus Avitide Solutions. of Polymem, the the complete, on integration integration On forward on essentially finalizing which the moving

on EMT, made at production BioFlex direction our our momentum, resins, our These on new COO, include and commitment Jim demand dedicated announced as AAV will to launch with we and integrate market Bylund, our Expanding under of real have to generate management diversify With this new chromatography acquisition for a at NMS products revenues BioFlex through be we gain Avitide. delivering formed the portfolio to components. close team products ARTeSYN increasing and the company million expect on franchises. overall development of with progress team of We and in in to the this product differentiated the we're output. the a XXXX. seeing commercial now affinity BioFlex, Avitide Solutions fluid focus for revenues management Filtration newly accounted $XX here earlier our Mentioned Chromatography product business and in we bring front on the February, to first

success. is gains affinity current customers key With by caustic as in XXXX Chromatography therapy as the the The on are efforts R&D year fully to wide high This these systems expect marketplace. stability encouraged of year. evaluations support of seeing we where range efficiency and just on half expanding value AAV technology of as be R&D our a our We example to of in resins. underway new and focus Avitide majority differentiators focused of of our drivers to expect on this in family focused to leadership are configurable additional of customers on Filtration of and for ligands year, developing a needs. increased we gene one We feedback R&D were introduce benefits products early other resins further second continue versus the innovation many our the

therapy accounts quarter order making mRNA record represented growth business, in XX% Within of growth therapy, with quarterly CAR AAV This total gene the for that than revenue gene the first gene approximately modalities. our good our half in our and more on Finally, came accounted and revenue adding cell from from for our the half than quarter. and saw new year-on-year. Filtration Cell revenue we're by a of team we XX accounts. and therapy, where exceptional XX%, led greater XXX% was other progress performance, of other T,

in than therapy, gene in be We be expect XXXX. continue the therapy greater now traction very here gene up to by encouraged we to and XX%

So, performance. to quarterly moving now our

mentioned story based. base The of Filtration mAb and strength of our growth the quarter again than and XXXX. business As In gene compared was first the Filtration, accounts. earlier, continued business in XX% quarter greater the up the the XX% strength was to was therapy broad at

business mAbs, biosimilars make use Our gene to and ATF continues ATF inroads XX%. therapy in approximately up was where single

the crossflow The than had which business year, driven will expect systems by strong business XX% consumables of our a vaccine range we commercial the doubled and TangenX our of to Filtration more hollow in especially in fiber demand. this cassette demand, reduction Within our expected in COVID second flat grow half COVID franchise, impact the sheet franchise, now quarter, XX%. and to mainly

some chromatography, resin our to OPUS range for of orders will saw grow We the XX% had in in franchise our of improvement Moving and and continue quarter excellent revenues. XX%. in QX to business to expect terms an chromatography supply pre-packed chrom

proteins is key market XXXX. headwind to continued business as Our XXXX, this first expectations. marketplace able be Cytiva will line which year-on-year. ligands through demand partially flat offset NGL solid sold a traction and the We Purolite in of anticipated through performance quarter, of the Avitide resins through believe proteins is the we quarter driver essentially in we our the overall the for with demand A move for our had through

in X% to the of range the proteins expect to for We year. XX% be down

Analytics had growth Process XXX% Highlights for quarter in excellent our accounts. the XX%, quarter, with included Finally, Europe, from than solo demand XX% robust an greater our business for new of our coming with flow business and up systems products. both

XX% approximately of We growth the continue for anticipate year. to

So, overall, here an to start excellent in XXXX. we're off

XXXX. While we M&A. for foreseeable differentiated expect guidance, meaningful future. our is combination our by COVID of versus new We go-forward updates. will non-COVID a a been original call all that, our we driven the the and has over in XX% goal couple on of highly which business performance, product our year. the exceptional forward on business remain turn our introductions to and billion in with basis the updating look to years, this annually XX% Jon achieving we $X grow And last through Overall, still to and base Balancing COVID-related expect of track for progress demand financial to products, revenue be of on down you the revenues between I'll over

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

shared earnings As morning, delivered performance. totaling we've earnings our this record revenue, again quarter first in delivered the press million once period $XXX.X we've and record in release also

up Our base the fourth of year-over-year and XX% up outperform, to quarter from sequentially business XXXX. continues XX%

the of of quarter, strong our order execute to and XX% We focused performance business driving Operationally, over related business during on quarter. million also $XX the in first on we for our acquisitions. our with good gene base portfolio growth the key supporting revenue cell to which therapy fluid continue and COVID, a reported successfully revenue initiatives saw to and for on including expanding off dedicated management start customers, growing our operational with integrating XXXX our XXXX leadership, We're and our commercial year. relationships resources therapy initiatives, accounted

innovation company several R&D teams programs, drives work development year. always, new As continue important the on our with and launches product to for planned

our for our ahead track growing products, capacity positively plans for lead are of our demand With the are bioprocessing of goal on customers. impacting expansion and times staying

the enhancements with IT and where X and completed we've business India also locations. our our at manufacturing offices go-live Auburn to continue our Massachusetts selling Korea Hopkington, We and and SAP our system phase implementations support at ongoing

spent to the employees, customers to in the XXXX. to our capacity company, our and the of our In addition, we first capital investment expect Respect $XX and processes we've information technology capabilities in plans and up quarter, information continued expansion invest our in invest we to million shareholders. million our for year, $XX to continue and security here to protect expenditures

expansions California to focused Massachusetts and we're our earlier, to increase mentioned on our Tony for Marlborough, months filtration over products. capacity the online six key Rancho, three As bringing next further

our will times months for reductions time, facility customers also time product as to business. in we Hopkin are few ourselves move expect and fluid and we the we in lead our create next to Our At our significant support same management online the come driving [ph] lead advantages forward. for

revenue Now quarter shifting to commentary. first our

On quarter, of of delivered the reported in XX% revenue top line, or approximately million $XX first $XXX.X growth. we've increase an representing the million

during the points constant currency growth and almost year-over-year. was and represented Inorganic of quarter organic XX% acquisition X% growth at our revenue was revenue Our growth. XX% X of

X headwind, the strength dollar US point euro. nearly by a triggered compared driven exchange to Foreign

our the quarter, our and points, for our vaccines, of results business business our American grew Looking first commercial Asia/rest Within global total Europe closer coming in XXXX of grew continue our XX%, to of three total XX%. see with attributed represented North and COVID. Europe quarter, driven area additional points In Asia regional first to each XX% increased and from the by represented to at contributed acquisitions we North base COVID revenue XX America world the business business. our XX distribution, regional an XX%, of XX%, our for points first from quarter growth X growth XX% regions. in of increased to Revenues global region XX% positive revenue

period XX.X% first for million of the XXXX. of quarter million income same XXXX. XX.X% first Now from XXX of expanded our points moving by the over margin the basis XX% period XXXX, adjusted or profit gross down Adjusted in in statement, increasing just was gross $XXX.X compared same $XX.X to the by quarter in

Now products quarter later transitioning to and important launch Increases year. the as to well down first as continuing adjusted our resins of Adjusted Avitide of several operating were of development therapy total gene our be the P&L R&D the new research launched expenses. spend new expenses from innovative revenue. development X.X% the in to for business, were innovative this

in XXXX quarter than our of of total of were and are less timing personnel, to long-term acquisitions adjusted XXXX points XX% Year-over-year continuing systems increases the investments SG&A dollar expansions, facility support XXXX. First in period our about same approximately expenses growth XX all spend expectations. and revenue, in linked the in

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

compared margin reflecting operating as prior-year strong improvement during First were XX XX% first quarter an operating to gross adjusted points in of quarter. the the of a first was margins several basis and XX.X%, factors. Adjusted quarter result profit and

revenue up capacity to expenses First, and the expansion were of activities. volumes our and tied outpaced addition hiring growth

ahead from Second, inventory here quarter. at we the seeing are in we inflationary we in of mix last from product year's benefits And realized prices benefited purchased favorable third, XXXX. impacts the

XXXX. our first improvement first Moving to the million, XXXX finally, the XXXX, We'll of our to employee was are $X.XX share quarter GAAP XXXX significant to XX% payments or quarter which in grants per XX% fully adjusted at metrics, quarter. XX, adjusted the million the or now net of to totaled XXXX, $XX of million full-year quarter in cash and diluted compared $X.XX of $XX.X income. impacts of the bonus reflecting transition quarter. $XXX.X to in net EPS of an to of Adjusted income $X.XX first compared the vesting annual cash an And In payments XXXX, and guidance. related our equity tax increased increase March equivalents,

income included XXXX XXXX fine-tuning be million of of GAAP XXXX guidance $XXX and in XXXX in earnings constant to guidance expected our and fluctuations noted, rates $XX to unless may growth Previously of million is growth financial exchange keep includes release. acquisitions. mentioned, our the today's in maintaining to to XX%. million organic discussed all to $XXX in for at business, to in by expected margins include operating guidance guidance the Adjusted impacted quarter. of which acquisition COVID revenues, current future and inorganic of XX%, our impacts We're the our XX% full-year revenue transactional for mind XX%. the operating not XXXX seeing $X year. also million tables otherwise for in XX% to We're to from XX% our will XX.X% range Please growth may to in our to our at Our be expense that guidance of beyond reconciliations from metric, in foreign impact base guidance currency at expense the of XX.X% headwind margin COVID of million, we reconciliation $XXX of on million to that adjusted the XX%, about guidance the are XX% press revenue X% year other full-year on our projection a sales and gross growing XX% does $XXX adjusted range our This acquisitions XX% are of revenue non-GAAP. and $XXX of we're million $XXX revenue business first any offset strength million revenue reported range to base income project to of realized of our due half of adjusted potential previous reductions the the we guidance, a updating Based $XXX our revenue company representing to the maintaining foreign exchange in pursue. zero million, the GAAP XXXX non-GAAP

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

million, $XXX fully diluted and to guiding income the expected adjusted from be $XXX million of $X.XX in million of $X.XX $XXX to to share. now Our we previous guidance EPS our is range to to million per adjusted of $XXX net guidance are

amortization to average is now million. million million, expected be turn fully spend EBITDA February million our to generation Adjusted outstanding $XX $XX.X million, CapEx to of metric, range update, $XXX in fully the and $XXX This guidance will $XXX at Depreciation shares our intangible now XXXX. from million to $XXX in approximately to is reflects be guidance cash be of expense respectively. guidance approximately an company report year-end and now million the and for adjusted our being Our our estimated cash compared diluted back and in EPS expected to weighted operations. The to GAAP million lines capital cash to financial by range expenditures $XXX expects operator the million $XX.X equivalents, I in to expect funded to questions. $XXX investments million call to continue with of completes the XXXX. We a and open year-end the XX.X

[Operator Instructions].

comes Stephens. Jacob question Johnson First with from

And [indiscernible] congrats I out questions on nice I'm just know it get maybe it. on quarter. way but getting the to because business, of

Just these for $XXX just then? contribution, around were on XQ. Tony, COVID thoughts talk And given the throughout especially year, opportunity, for the on kind of be revenues the some pushed until the about plus million thinking your that out COVID million XXXX Can the cadence we about how then, any comments year. orders $XX in should

of that working the on vaccines come think to And largest year. is were now first a We to XXXX kind for million from walk rest the our we then, into orders that about so the of talk had from of customers is new in is year, half XX% majority maybe I about it's estimate just the little of been too that in at XXXX the information less of who played year the of of going where will really think proxy is at vaccine XXXX $XX for the netted and were have XXXX against the It's be look I be second the XXXX. out. would XX% in, too to soon, each project XXXX. had million happen million had we of quarter but just terms year, to out orders the cancelled, COVID of of When $XX of second of way how on we we going opposed early year, manufacturers. half. they think in the a as that effective best out, this to push But $XX more half we other probably Omicron. from then kind And have range because in half stage handle bridge kind this don't first right the to the through on next what

couple is line business. level lot share segments, top driven up And this base Maybe Tony, grown the but question. the A across higher and portfolio you you how talk strength new year, gains highlights share Just of years? it has last frame the kind in kind the to kind Maybe the your of over and thinking how of would have the various your of currents of guide additions been the alluded of but times? cross lead year net change the you this for maybe kind rapidly market dynamics? by filtration, to guys of the over much in of last portfolio? the those about

think from Repligen I depth strength really of that share portfolio gains market of products coming are have. and we the the the for

their competition versus there there's product with last few Cytiva. when approach you from see and our pretty prevalent how And with strategy over what Filtration at differentiated Chromatography, implemented doing whole XXXX the think So, happened for doing now a few we that years with but here fall-off in like marketplace can we're really see have we're has with out portfolio, think flow OPUS, really you which lot Analytics, of the that's of not last Cytiva volume, how doing terms years, – in to competition. is products more I line. what Avitide, Purolite, about product our own deal what Navigo, we we chroms. that proteins, pre-packed obviously the the Obviously, what then our over really in in with we're you lines. solo you can when we're look it's

in and really products I smart it's off are got XX products market. portfolio brought we've We So, differentiated, good launched a R&D you here highly they've that products last our new start in And good XXXX. see M&As a to can year. of think that combination that to

The comes Dan Arias with question next from Stifel.

when within portfolio them? you new you advantage? to then, market? looking kind online the times your given further you absorbed about push of new see just think biggest areas capacity where the to just fully think that you will like and of bringing that an your the it the there? comments sets two And and the an attached in launched opportunity on as quarter have into given benefit the do on launch, opportunities XXXX, therapy slack or Just think that products the there to way gene Tony, are be a you're and importance guys the do at lie interesting takes do some product you have that there quickly you lead Or for think fairly looks

last at into see capacity, answer in terms QX to point in pivot here we of look question quickly. times happen and down when would QX started Dan. I'll coming of really pretty That's continued to last we I the think a first, year QX. in Maybe lead

times our advantage. majority as in competitive to of times capacity. the will in on good So, the the products, in under additional on second and there think year, bringing weeks, a of definitely are product longer shape overall remarks, we'll we of our of we're lead as lead pockets terms down I be where said XX really And pushing have half there we opportunities in I be terms capacity, of get lines to prepared others out my

proteins, deep do – that when benefits the business, starts market has us, just in chroms final of between where, area We've When business no like then, the the gene customers traditionally, the space. It market got systems, the an chroms. part pay the really Analytics I than we're that where it's And but can not portfolio, XX, hollow it's mAb in our We'll because always different us not of uptick gene part look upstream XX the it's that is beginning down mainly portfolio. filtration starting as you we FlowVPE. in focus that coming are play biosimilar put of TF/DF, terms therapy in over we the customers be have gene quite think ATF introduce the part really using but – well. analytics the is which pre-packed bringing our area see new and of for In we Avitide are get and fiber go really of road, focused I And last gene months, the think doing it, fair an off. SoloVPE, convenience it's products And of of the on to between or customers space picture. there. to products for and line both like therapy customers are the using we'll downstream, solo our obviously really into we've now you filtration the a have in share therapies product – of now at which therapy the pre-packed technology,

there considerations years, mix you correct, that versus to that you we see be should it of this of past this of levels COVID just Jon, growth, where go investment you're little mindful we if getting profitability sort next further, the expense talk EBITDA about in making? about maybe quarter And can bit or once are the to maybe able a just maybe here, comes push from get the you thinking some when are two? just little could then, beyond non-COVID out thinking a about out

We same. like products COVID bit can second the talk of question on little COVID between and a first, business non-COVID the Dan. within are The our profitability levels about

or difference a and COVID products. price performance major non-COVID isn't between really in type there So, difference margin

it higher about that talk quarter, margins, certainly spending, got we've guidance had on seen, already to maintained and had margin at the earlier from as guys our area. you relates the the second we about we've we the margin to that as seen an a what things of you that talked that gross benefits revenue And guided and our If number. we've have do one in guidance we outstanding in operating here half, you've year

of do, to second will year, work we in here got will we've do those which some So, ranges. the terms in investments guidance enable within which half more continue of pacing stay to to the our us

here well that have pretty should control the So, half. for second under

chance great strength there way right the guide? is gene really, it? from therapy sort confidence and you through down the larger vaccine get Is just talked manufacturers XXXX guide the that further they're other to one, look full-year gives that to still And about peers, $XXX How million keeping at the investors, we're then, this wondering to the process? getting base the your think Maybe a you about. potentially more their shift we you number? in COVID if intact. vaccine bioprocessing business what that this in? do see But that of cancellations First The come steps us walk and to when question more and

Repligen lower estimates? unique the something up to and is prior So, products delivered there about how vaccines actually number they're your that bringing versus ends the

cancellations. had as is we we of year, started called million, I – through the the walked I've into February, $XXX We coming you it Jacob, COVID think that essentially XXXX. – orders the if with had to Getting in $XXX but which where out we was million think

also We came the had around all orders they out, push in, $XX million. that obviously, new were and and

just The are it's for our that know just first COVID the the $XXX million. of the of in XX% half year in half extensive So of COVID for we're saying We've lower much numbers be number we the year, second of that and half it I'm that's had top giving revenues do year. you means the ended with conversations fact second the today. how math, numbers up the in at going The XX% the players. is if a the to we

So, we down straight of now, deal away right business. to XX% business further, believe falls further. if doing off base we're strength But, the have our strength we we we're call also quite believe it base you're drop our we to manage might that I our that well. But don't it's smaller orders, the through in base in seeing what And why the with strength business, drop know, believe really is able happen. that's going offs any in that we'll getting the

with Repligen. in XX% players I look only that our Jake when in And who we're our – company, Puneet, now terms other can In we're are vaccine note, right? you where calling sorry, COVID. we with. commercial can't we And revenue at tell really all vaccines. a it and manufacturers, would a into we see a I XX%. I the at you after bringing And the – million, as going speak of for down are, came to half dozen we industry. of working what's year on we what are at I'm in $XXX peers, COVID COVID in We're speak is biggest That's for can our

I think a their in lot tied of the revenue – up a bigger smaller their COVID. of players percent have of COVID

could that be explanation. So, part the of

in could what that? any, and in are the billion there ongoing, COVID you're there recovery given seeing Just there? just outline overall potential you impact exposure of to into your is how maybe that just and follow-up, and expecting full-year your guide, sort lastly, baked the And guide of then XXXX much, you China lockdowns terms if on $X

number, range you and right CAGR XXXX much with the to at where XX% do our the our On at to the off to base XX%, projections. XX% on billion we XX% if are – you or now math you get $X pretty business actually out XX%

growing non-COVID that contribution that whatever to dollar So, hitting billion on going from XXXX, if that to XX%, in we're track can we confident XXXX be to there will that our still and expect XX% some number. which be pretty we're in business the we we think COVID, is contribution keep

doesn't M&As incorporate way. come additional that any And may that our

China? on And

the China, On else, where you up. situation year. is for the the our bioprocessing customers opens are and that, have dealing Like hoping like lot a we all the We're last with basically everybody of month. shutdown that Shanghai early in we're that like major cities everybody peers,

now is opens it just to wait you it through QX, on look when What China the up few to go that I weeks, up what and than lot the basis, next able QX and to as QX. today. we'll we see happens you think have a at catch all be So, full-year more as a we if in expect between do

The next Morgan. from Qin Julia comes question with J.P.

upside I downside. than think Regarding leads more that outlook, the long-term presumably,

either or into new dynamics COVID, upside the maybe biggest extent levels your than I stocking So, where in you outlook? see are leading potential inventory terms uptake business you're other of the what any we know end market as through to And demand help or of in upside, to base terms the factoring products? of for think which expect us might or downside

space. last said, we is this products. no track next us of There's will that out in do up products gene Julia, alluded the from So, to in years. biosimilar of others probably what to really new of continued consistently the originators do XX going as new probably gets off out upside right? feel come products, more doubt company, launch to the And the that year, on therapy, XX% But upside new on can as of think X to, continued our good part from That's – businesses literally as between for XX% come few there's the space have billion us. we're putting but to of the accelerator sort products I year. mRNA we and again non-COVID progress patent. And also we XX on the somewhere That come, obviously, traction continued the for

Repligen a healthy years. So, robust for and the a contribute coming all of those towards over market outlook

in any factoring destocking you are dynamics, inventory And XXXX?

if That's reason back. four asking some you through And we year a – maybe to strength, our really a question strong there that expectation, the everybody dynamics this some was start was first see really, year. pull I it's the inventory last question. think I about year. as is, harder look off it's harder the And order we'd of months When started been we at think

we're So, kind we into it the years. right of see it few now. happen, does factored seeing over it's not what next if And

a that that the products around gone marketplace, confidence non-COVID. doing new put we're in specific XX% our level number, to XX%, in lead just that us how the haven't think portfolio, we We a and were for coming of all through,

Based or has air from My their of to pocket your on any process observations, follow-up temporary has non-COVID your experienced projects? what pivoted smooth how transition a customers projects? in been them extent is, to between COVID already have the capacity

pretty it's right now. think I fluid

COVID. who on a with canceled, dealing much multinationals do I back with you're say, immediately I dealing CDMOs they that A and and we're and comment broader major lot So, oh, business can't y. also the really x jump in have someone the of are need than product for companies

it So, and the $X and – CDMO was let's same it's at lost look X Oh, hard out that cancellation we say, we to say, and offset. an million was that, CDMO oh, of there of picked at up

think look right our it's the by industry growth. to of the that market really That's this And XX% bioprocessing move now. you is XX% in healthy. all COVID our the last move health the it's fact think robust all over year. the quarter, with industry. Whatever right, of around a rest order over overall think the to do well. projection all able in think, means, growth the and but start to us our see And of week going very encouraged have to forward be base kind base healthy is are for to XX% right? a business of I business we're strong base bioprocessing and will and right, that very I have down. normalizing all, at I normalizing, I is businesses the absorb to core peers the highlighted more This And as on

Congrats quarter. on the

The Paul comes with next question from knight KeyBanc.

about think larger any a the those down have have been a customers like therapy lot there's lot of the you early Do feel particularly what color a doing? mature and at seems ones there It appreciated. any lot I are but of of cell comes angst stage that gene players. pipeline, Tony, funding, for

gene coming large from and lot of and therapy in this in and early gave kind are – the on we think think right, of on stage of cell there probably our therapy there's we well. cell When in few that clearly large I at therapy the we how little are up. a look side. more and space. a and majority the I companies. CDMOs companies funding, The mainly look more in very today, But gene companies as we small There's I gene impacting startup at and other therapy, cell revenue And have revenues color cell working a that bit think, gene that you're it's gene mature we therapy out business, the areas split

and So, is but mRNA is other XX% the other CAR AAV, T, modalities. XX%

the quite least of stage at mix that think us. the not of we're I the would impact half and XXXX. positioned early have first the impacting it's in So, terms I in just funding, we suspect through well And of XXXX, here

sort I of on So, I you wish could further it. give a color

happening, we really right While in our on impacting it's not now. it's know what's going space

as we supply? Jon, higher Maybe trouble pricing, go mentioned material costs, this dynamic the right, a for getting is had then on and the on any into supply question chain year end there price you what's of is the

of packing be the most supply, nature, and significant chromatography day-to-day obtaining piece different challenges challenge parts always and things have the Inbound columns. that with for to continues you but resin

bit side. starting that little changed, availability we're maybe to freeing resin dynamic of And although completely hasn't on a up the so, see

In inflation, digits inflation of high-single definitely on anywhere would terms low-double be inbound reasonable to seeing average. digits we're the probably a range of

is Here at in off in significant in definitely inflation and high one now. early side, inventories leverage help areas, to the back to able And that the prices, first a quarter got great are margins we were first quarter, we increase that a seeing did really our to us freight some purchased former in. coming we so But are a where bit that that other area charges we're where right the in seeing XXXX freight the here start.

So, working that. through

Kreger with from Blair. comes William John The next question

actually Justin John. on is This for

bucket, I three in another persists gene therapy. cell you guess, growth in for growth if about in are the and achieve drought or two long-term some So, What's years. funding guess growth obviously, area the industry have XX%? you think the line four good in I capabilities really of you within all? quarters, And say, anticipated the Do to above or three needed next let's traction rate this CAGR at can worried to you're that you getting achieve

I gene look at we north is our of therapy can view we this think space, year, XX%. that, When cell the think we and grow

grow on we we probably points five can the average, believe above think market. I

right that the drugs, think is important funnel So we really, this us, therapy for funding attainable the probably while we more cell funding drugs look the we few really plus the the at getting and think, through at piece important, when approved look XX%, gene the for very years. XX% you is is now. I moving next think space, issue, When us and over probably

some three believe phase have the that's will commercial three to approval, the two approaches help that phase terms that successes, really to that the companies in phase So, to I we taken, of see what personally whether need early on stage on validating viral companies will funding a of give CAR using side confidence it's think wins or and lot probably vector it's T the to basis. a secure go-forward the the technology, I those more will

getting we're front phase more phase becoming So, are is to attention at. phase paying FDA looking funnel, getting the That's what and in how we're of Xs, are the Xs Xs approved. deep probably really

on, And guess, Asia-Pac. real I quick

think you mentioned last think, think are you and forward? presence filtration quarter, grew more this doubled big driver XXXX. in in should than XX% I the in? region And were other the I Or words, like or areas in last and expanding quarter, it going said how quarter, about you as well as investing you what contributors quarter? we primarily your COVID another the

in well. I probably is we've would Asia-Pac one area really say the where filtration done

lot Asia that the look customers I biosimilar doing you've resonates of at going Pac, you quite well. it of When in what you products, a on. got are depth look at activity of think when portfolio

is Obviously, on do one the filtration. well Pac. Pac, if for stands ATF had to it's in processes. therapy really there. mAb rise like products also Asia out pick Asia The portfolio very continues that I in to do in gene So, But us well those

is I the for I to is see the year, a the China up. And Obviously, important what think clear very then, robust Asia know Pac to up. in someone now, to that So question, everybody's like right as in up with we think weeks, the we China. we'd basically, four go piece market open dealing asked through honestly, last open back

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

their regarding along the gross have up ordering it – – be side to side you on Does that they pass some you for color Are dynamics? thank first prices supply curious, margins change of higher and Maybe of some I'm your these receptive? helpful. just Any what would the opportunity do to color customers? on

specific to add those that additional good in is clear bioprocessing, our some And today receptive guess, speak are can in coming can chain. passing color the not right, that. the market increases seeing pretty simply maybe I from it's because different as we suppliers, down the suppliers, along Everybody's right? price necessary. inflation Tony of pretty prominent, The to I is But, customers. overall, to that to overall,

we as seeing course, to and, And of forward we're along that continue we're we'll passing so, opportunities price those look at customers. to go increases passing, as well. our those And

helpful. be going Maybe lines an that with those curious, could moving to they're be have COVID mAb customers larger one vaccine are that flu vaccines. any a How to along I'm of recently separate become question, opportunity announced that for And ahead your of big Anything dynamics market? would there different you?

market, there. think really out flu of flu look just are that. are of working a early technology, market you there's When There a stages. at using in mRNA number opportunity general, It's I companies the that lot on mAb the

starts you'd the be technology definitely opportunities. nice one getting other five-year to a light. and on relatively COVID horizon, it is going if multiple where dollar of tailwinds the comes to contribution So, you take I to think have actual think really mRNA it's like that of out But it I applied

in the So, think that opportunity everybody space. I knows bioprocessing an that's

But, the is I I light next think future revenue it. all or becomes significant. for it think contribution in pretty the be think working year so. yeah, I to going the But on we're

Couillard with from The Brandon next comes question Jefferies.

you around some the where volatility bulk Most kind it's share curious some if I'm environment, or your of as your as the the priorities add like be up the on would portfolio? an markets of opportunities opening thoughts questions whether latest and have been just you'd M&A up to addressed in update already. could places of of far

a M&A of strategy is, going our part last change. the of clearly, I that's don't over years. – our eight has part been think nine big or to

But than saw, XXXX dynamics out say, I we are I'd versus I good the in it's quarter what on general, last in assets are some little still say the piece always, slower next always to And our there XXXX happens for saw or think been I first to there. we'll similar in go in what pretty M&A year. a think XXXX. we at one of strategy and what we we're an other through when each we we have look as And is, years. think the as talking do the businesses. our portfolio, see people two M&A

for closer we So, we're one want to as not is say, a become to division assets transaction, available any only do to, each or focusing get M&A have one. one a strategy Oh, this on, the on we

when about I to Tony I add earlier a XX% XX% on. comment growth. to talked made wanted

M&A. the some does growth from include impact so, And some – non-COVID impact could include

wanted I clarify comment. so, to And that

Just one clarification.

that this quantify think, in last and that? mentioned Tony, I year did, revenue year? you you get it terms products like new X% Did of Can Jon, products. introduced of or you Is new right? I this, about

Yes, right. that's

right. about That's

Selvaraju [Operator comes Instructions]. from The H.C. next with Wainwright. question Ram

recently the wondering in with projects likely I to particularly of in regarding you among with to concerns on and and that's therapy therapy, your cell in respect to if any gene you're gene Congrats, especially few have respect situation, again, your comment been regulatory and – from on that placed environment, think on was effect the any customers have if business. the could regulatory quarter. knock-on a kind of clinical hold if the performance hearing you light particular,

the said and drugs we this whole process. and to I to gene what think more it more comes therapy, I earlier, market back see in approvals, cell moving through need

and the happening. X number of in and of of it's phase are X, phase phase think companies trials healthy X very I that number terms

or see months we think I to it. that just concerns background be growth. into the that regulatory just any catalyst And think ago. months or out six that now might there, need progression, it's will now So, from the six I be put it'll for whether And

to follow-up a be, this years? we already in focus for directions already then, existing would where continue intend to sort in bioprocessing, in yourselves up growth, And if about the present? way, which where the future those a think about we M&A the of expect general you where the of pursue CDMO should you positioning you areas see overall to in bulk Or are about broader the extensions presence you you line you on thinking maybe you're way Just within existing qualitative coming be on beyond areas how even comment context, be perhaps that thinking in to likely arenas? are have in and strategy sort an and

what and the Repligen. our has think we've think When M&A stool I been done, about to build legs for on you strategy out always various

now proteins a then filtration, we've we chromatography and became we protein company, management. added in fluid analytics, were and then we So, company, added a in added in we then

some of we those the vector years may say different up So, do businesses going add opportunity that is what I would next new we have. five to line five road be the But in those five on to a our majority There us. businesses. I vast down the for will focus be in think with will

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

coming – a thank they're as as want and Obviously, also to fantastic everybody we're very our our And just starting markets into we're at off this look just are come I we off for morning. incredibly QX. QX orders We'd strong. really attending strong.

and go year So, how with we're we the of at up company to perform end you. to going about Thank catching the really July. everybody look is optimistic as forward the through

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

disconnect. now may You