• Fourth-Quarter Revenue: $167.5 million.
• Full-Year Revenue: $634.4 million.
• Revenue Growth Ex-COVID (Q4): 13% year-over-year.
• Adjusted Gross Margin (Q4): 50.7%.
• Adjusted Operating Margin (Q4): 14.9%.
• Adjusted EBITDA Margin (Q4): 20.9%.
• Full-Year Non-COVID Revenue Growth: 3%.
• Adjusted Gross Margin (Full Year): 50.4%.
• Adjusted Operating Income Margin (Full Year): 12.9%.
• Adjusted Net Income (Full Year): $89 million.
• Adjusted EPS (Full Year): $1.58.
• Cash Position (End of 2024): $757 million.
• Cash Flow from Operations (Full Year): $178 million.
• 2025 Revenue Guidance: $685 million to $710 million.
• 2025 Expected Revenue Growth: 8% to 12% on a reported basis.
• 2025 Adjusted Gross Margin Guidance: 51% to 52%.
• 2025 Adjusted Operating Income Margin Guidance: 14% to 15%.
• 2025 Adjusted EPS Guidance: $1.67 to $1.76.

• Warning! GuruFocus has detected 4 Warning Signs with RGEN.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Repligen Corp (NASDAQ:RGEN) achieved the midpoint of its November guidance, delivering fourth-quarter revenue of $167.5 million and full-year revenue of $634.4 million, despite a $3.5 million exchange rate headwind.
• The company reported a 13% revenue growth ex-COVID in the fourth quarter compared to the previous year, driven by product differentiation and better market conditions.
• Repligen Corp (NASDAQ:RGEN) saw strong order intake in the fourth quarter, marking the highest order intake since Q2 2022, with orders outpacing non-COVID revenue for six consecutive quarters.
• The CDMO business experienced significant growth, with sales and orders up high double digits sequentially, contributing to a similar full-year sales growth in both CDMO and pharma sectors.
• The company successfully launched several differentiated new products in 2024, including the KrosFlo RS10 RPM system and AVIPure double-stranded RNA resin, enhancing its portfolio and addressing unmet customer needs.

Negative Points

• Repligen Corp (NASDAQ:RGEN) faced a $3.5 million exchange rate headwind in the fourth quarter and $5.7 million for the year, impacting overall financial performance.
• The protein segment experienced a 28% decline in revenue for the full year, attributed to a reset year with OEM ligand demand down to minimum levels.
• China was identified as a key headwind in 2024, with sales expected to remain flat compared to 2024, impacting overall regional performance.
• The company incurred approximately $45 million in non-recurring restructuring and inventory-related charges in the fourth quarter, primarily due to non-cash inventory write-offs.
• Repligen Corp (NASDAQ:RGEN) reported a decrease in adjusted fully diluted earnings per share for the fourth quarter, down to $0.44 from $0.48 in the same period in 2023.

Q & A Highlights

Q: How have things evolved with CDMOs and capital equipment, and what is the outlook for tier two CDMO accounts? A: Olivier Loeillot, President and CEO, stated that the turnaround in CDMOs and capital equipment was confirmed in Q4, with significant sales and order increases. Growth was seen in both tier one and tier two CDMOs, reflecting the health of the ecosystem. Capital equipment also saw a strong improvement, with sales up over 20% and orders up 25% year-over-year.

Q: Can you provide details on the ATF business and its impact on 2025 guidance? A: Olivier Loeillot explained that the ATF business, part of the filtration segment, grew over 50% in 2024. The company has been spec'd into blockbuster drugs, with consumable sales expected to increase as the installed base grows. The impact of these wins is expected to be seen in 2025, contributing to growth.

Q: How sustainable are the current order trends, and what are the expectations for 2025? A: Olivier Loeillot noted that order intake increased every quarter in 2024, with a significant 18% increase from Q4 to Q1. The company has maintained a book-to-bill ratio above 1 for several quarters, indicating sustainable growth. All franchises, including proteins, saw double-digit order growth in 2024.

Q: What is the visibility on protein growth and new product launches in 2025? A: Olivier Loeillot mentioned that 2024 was a reset year for proteins, but the company expects a return to 10-15% growth in 2025. New product launches, including the AVIPure double-stranded RNA resin, are gaining traction. The company plans several launches in 2025, focusing on new modalities.

Q: What are the market assumptions for the 2025 guidance, and how does Repligen plan to achieve growth? A: Olivier Loeillot stated that the company expects a return to pre-COVID growth patterns, with H2 stronger than H1. The guidance assumes low double-digit growth excluding COVID, driven by product differentiation and strategic initiatives. The company plans to increase R&D investment and focus on new modalities and PAT.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.