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Repligen (RGEN) Beats Q3 Earnings Estimate, Ups 2022 Guidance

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Repligen Corporation (RGEN - Free Report) announced third-quarter 2022 adjusted earnings per share (EPS) of 77 cents, beating both the Zacks Consensus Estimate and our estimates of 68 cents. Earnings fell 1.3% year over year.

Total revenues of $200.7 million also surpassed the Zacks Consensus Estimate of $178.2 million and our estimate of $192.3 million. Sales rose 13% year over year (19% in constant currency), driven by major growth in the company’s filtration and chromatography franchises and robust demand across its core monoclonal antibody and gene therapy markets.

Excluding the impact of currency and acquisitions/divestitures, Repligen’s organic revenues increased 16% year over year in third-quarter 2022.

Quarter in Detail

In the third quarter, Repligen reported product revenues of $200.7 million. The company reported royalty and other revenues of $0.03 million,

During the quarter, Repligen’s base business were up 29% year over year. In the reported quarter, Repligen’s base business accounted for 83% of revenues while COVID-related sales constituted 14%. The remaining 3% can be attributed to inorganic revenues from mergers and acquisitions made during 2021.

We note that Repligen’s base business can be categorized mainly under four franchises, namely filtration, chromatography, protein and process analytics.

Sales of the company’s overall base business grew 29% in the reported quarter.

Repligen’s filtration and chromatography businesses were major growth drivers in the reported quarter. The uptick in these two business franchises offset the decline Repligen witnessed in COVID revenues.

Revenues in the filtration business were up 15% organically in the third quarter, driven by alternating tangential flow (ATF) and hollow fiber portfolios. Organic growth from the filtration and chromatography businesses was up more than 20% year over year. Repligen anticipates its filtration business to witness a 25% growth rate in 2022.

Repligen’s process analytics franchises performed well, driven by the continued adoption of FlowVPX, especially in Europe. Repligen anticipates a growth rate of 20% in its process analytics business for the year.

Revenues from the protein franchise were flat in the third quarter, with revenues from growth factors and Purolite offsetting a decline in revenues from Cytiva. Repligen expects the protein business to be down approximately 10% in 2022.

Repligen entered into an exclusive agreement with Purolite in 2018 for the development and supply of NGL-Impact Protein A ligands. The company recently extended its agreement with Purolite till 2032, and the deal now includes the development of ligands targeting mAb fragments. This is expected to strengthen Repligen’s protein franchise business in the near term.

The gene-therapy business represented a year-to-date growth rate of more than 50%, excluding COVID-related revenue at gene therapy accounts.

Adjusted gross margin was 57% in the third quarter, down 130 basis points (bps) year over year,.

For the reported quarter, adjusted research and development expenses were $10.19 million, up 16.1% from the year-ago quarter’s figure.

Adjusted selling, general and administrative expenses were $46.05 million, surging 21% year over year.

Adjusted operating income was $58.2 million, up 2.1% year over year. Adjusted operating margin was 29%, down 600 bps year over year.

As of Sep 30, 2022, Repligen had cash and cash equivalents worth $573.4 million compared with $596.5 million on Jun 30, 2022.

Updated 2022 Guidance

Repligen raised its sales and profit guidance for 2022.

Shares of Repligen have dropped 30% in the year compared with the industry’s 20.4% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Repligen expects revenues in the range of $795-$805 million, up from the earlier projected levels of $790-$810 million. The new revenue guidance indicates overall revenue growth of 19-20% year over year on a reported basis (previously 18%-21%) and 24-25% growth on a constant-currency basis (previously 21%-22%). Organic growth is now expected in the range of 21-22%, up from the previous range of 19-22%.

Repligen now expects base business revenues to increase 33-34%, up from the previously-issued guidance of 31-33%

Repligen anticipates increased projected demand for products sold under its base business. However, RGEN expects the rise in revenue to be offset by dampened COVID-related sales due to slowing vaccination rates.

Adjusted net income is now projected in the $181-$184 million band, up from the earlier guidance of $180-$184 million. Adjusted operating income is anticipated within $231-$235 million, down from the earlier projected $234-$239 million band.

Adjusted EPS is anticipated within $3.15-$3.20, suggesting an increase from the earlier guidance of $3.13-$3.20.

Repligen Corporation Price, Consensus and EPS Surprise


Repligen Corporation Price, Consensus and EPS Surprise

Repligen Corporation price-consensus-eps-surprise-chart | Repligen Corporation Quote


Zacks Rank & Stocks to Consider

Currently, Repligen has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Intellia Therapeutics (NTLA - Free Report) , Kodiak Sciences (KOD - Free Report) and Puma Biotechnology (PBYI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intellia Therapeutics’ loss estimates for 2022 have improved from $5.82 to $5.78 in the past 30 days. Shares of Intellia have declined 55% year to date. Earnings of NTLA missed earnings estimates in all the last four quarters. NTLA delivered a negative earnings surprise of 28%, on average.

Kodiak Sciences’ loss estimates for 2022 have remained steady at $7.12 over the past 30 days. Shares of Kodiak have declined 91.7% year to date. Earnings of KOD beat earnings estimates only once in the last four quarters. KOD delivered a negative earnings surprise of 20.20%, on average

Puma Biotechnology’s loss estimates for 2022 have remained steady at 6 cents over the past 30 days. Shares of PBYI have declined 26% year to date. Earnings of Puma beat earnings estimates in three of the trailing four quarters and missed the same in the remaining occasion. PBYI delivered an earnings surprise of 201.37%, on average.

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