Repligen (RGEN) Q3 Earnings call transcript Nov 12, 2024

Repligen Corporation, a leading bioprocessing solutions provider, recently held its Q3 earnings call, highlighting a strong performance with double-digit sales growth and a healthy order intake. The call, led by CEO Olivier Loeillot and CFO Jason Garland, presented a positive outlook for the company's future, particularly in the context of improving market conditions and a strong CDMO business.

Financial Performance and Outlook

The third quarter saw a 10% year-over-year sales growth and 6% order growth, despite seasonality headwinds. The non-COVID sales increased by 3% compared to the previous quarter, and orders reached their highest level in the last 18 months. The CDMO business rebounded strongly, with orders up 20% year-over-year and sales back to 2022 levels. The company's order funnel is also very healthy, setting up for a solid exit to the year.

For the full year of 2024, Repligen is narrowing its revenue guidance range, with revenue expected to finish between $630 million to $639 million, up from the previous range of $624.5 million to $634.5 million. This growth is driven by a strong CDMO business and continued strength in pharma, consumables, and new modalities.

Business Highlights

The pharma business delivered solid growth, with revenue up mid-single digits year-over-year and orders up high single digits sequentially. The CDMO revenue and orders grew approximately 20% year-over-year, with a strong funnel for future opportunities. Consumable momentum remains strong, with revenues up 10% year-over-year and orders at the highest level since Q1 of 2022. The equipment sales and orders are up mid- to high single digits year-to-date, with several large pharma companies adopting Repligen's PAT technology integrated with their systems.

The new modality business continued to show exceptional performance, with sales up more than 20% year-over-year and orders up low double digits compared with the same quarter in 2023. The company's strategy to develop and launch tailored solutions for different new modalities is paying off, with expected rapid growth in these markets.

Strategic Initiatives

Repligen's acquisition strategy is a significant driver of growth, with the company acquiring [indiscernible] to develop unique and innovative purification solutions for the new modality segment. The company also mentioned plans to launch disruptive solutions in the new modality space as it moves into 2025.

Market Trends

The call highlighted the importance of the CDMO market, with the company's strong performance indicating a positive trend for the industry. The company also noted a recovery in the equipment market, with several large pharma companies adopting Repligen's PAT technology integrated with their systems. The new modality business, particularly mRNA and cell and gene therapy, is experiencing significant growth, with Repligen's tailored solutions seeing high demand.

Conclusion

Repligen's Q3 earnings call painted a picture of a company on a strong growth trajectory, with a healthy order book and a positive outlook for 2025. The company's strategic initiatives, particularly in the CDMO and new modality segments, position it well for future growth. With a strong financial performance and a focus on innovation, Repligen is poised for continued success in the bioprocessing solutions market.