REPLIGEN CORP Q1 FY2025 earnings call

• Current Environment: Dynamic macro backdrop with new headlines, but Q1 was strong. Tariffs have limited net impact on EPS, orders up, and focus on adapting to evolving environment.
• Q1 Performance: 14% organic non-COVID revenue growth, strong orders. Biopharma revenues were at the highest level ever (excluding COVID) and grew >20% y/y. CDMO revenues were down slightly y/y but orders up >40% y/y. Consumable revenues grew >20% y/y, a record non-COVID quarter. Capital equipment revenues declined but backlog and funnel are strong. New modalities revenues and orders were up.
• Strategic Focus: Acquired 908 Devices' bioprocessing PAT portfolio, launched ProConex MixOne, and invested in finance and quality to be fit for growth.
• Franchise Highlights: Filtration, chromatography, proteins, and process analytics each had distinct performance with growth and key drivers.

Filtration: Non-COVID filtration revenue was slightly up year on year. Fleet management and Tangany's flagship cassettes led the way, ATF consumable was strong and at a record level, while ATF hardware was down year on year due to a tough comparison. Chromatography: Grew double digits driven by growth in large-scale columns. Orders increased greater than 50%, the highest quarterly order intake in the last three years. Opus has more traction with large pharma customers now. Proteins: Had a great quarter with strong year-on-year growth. This was driven by a record quarter for chromatography resins, and collaboration with PureLight. Chromatography custom resins had strong growth. Process Analytics: Grew 20% with $1 million of revenue from the 908 acquisition in the first quarter, and 12% organically. Driven by consumable and service uptick.

• Organic 2025 guidance remains unchanged at 9.5% to 13.5% growth for non-COVID revenue and 11.5% to 15.5% for organic non-COVID. Reported revenue guidance increased to $695 million to $720 million due to the 908 acquisition. Gross margins: Expected to be in the range of 52% to 53%, a 100 basis point increase vs prior guidance. Income from operations: Expected to be between $95 million to $102 million, with an adjusted operating income margin of 13.5 to 14.5%.

• Macro uncertainties exist. Tariffs could impact cost of goods sold and revenue, with ~10% of COGS from raw materials outside manufacturing region and low single-digit % of revenue subject to US tariffs. China only represented 2% of revenue in the quarter, and biotech funding has declined significantly.

Q: On innovation engine, early feedback on resins and mixers?

A: Resins had great traction with new launches, collaboration with PureLight, and new resins to launch. Mixer launch had positive feedback, with orders expected in second half of 2025, and opportunity around bag strategy with mixers.