Anna Snopkowski

Anna Snopkowski sought an update on activity with mid-sized CDMOs, previously noted as muted, and inquired about the performance of Repligen's recent protein resin launches, including those planned for H2 2025.

Answer

Olivier Loeillot, President and CEO, confirmed a strong quarter for CDMOs, particularly large-scale CDMOs, but did not have specific data for mid-sized CDMOs. He noted protein growth exceeded expectations in Q3, growing double digits, driven by chromatography resins. He attributed this to a successful strategy of developing custom ligands and resins, with plans to launch two to three new resins by year-end and several more in 2026 to broaden the catalog and support custom projects.

Anna Snopkowski asked for an update on mid-sized CDMO activity, contrasting it with previously mentioned strength in large CDMOs and muted activity in mid-sized ones. Her second question focused on the protein side, inquiring about the performance of recent launches for Repligen's own resins and an update on planned launches in the second half of 2025.

Answer

President and CEO Olivier Loeillot reported a strong quarter for CDMOs in both sales and orders, with growth particularly visible in large-scale CDMOs, driving over 20% growth. He admitted not specifically analyzing mid-sized CDMOs for the quarter. On the protein side, Loeillot noted a 'great surprise' as the franchise grew double digits, exceeding muted expectations. He attributed this to a successful strategy of transitioning from an OEM partner to developing custom ligands and resins through the Tantinar acquisition, with strong traction. The Q3 outperformance was driven by chromatography resins. Repligen aims to launch 2-3 new resins before year-end and has ambitious plans for several new resins in 2026, focusing on a broader catalog for new modalities and custom projects for big pharma.

Anna Snopkowski from KeyBanc Capital Markets questioned the strength and visibility of the distribution channel, which is often exposed to more uncertainty and potential NIH funding impacts. She also asked about the M&A strategy, focusing on how the Panthera acquisition enhances the existing portfolio and market share.

Answer

Chairman & CEO Roderick de Greef responded that they have not seen any weakness in the distribution channel in Q2, nor is any weakness reflected in the forecasts for the second half of the year. Regarding the Panthera acquisition, de Greef explained its primary driver was to solidify BioLife's market leadership in biopreservation by adding unique IRI technology and accomplished cryobiologists. He outlined the future product potential, including improved efficacy, lower DMSO concentrations, and a long-term goal of enabling shipping at -80°C instead of LN2 temperatures.

Anna Snopkowski inquired about the key drivers behind the five consecutive quarters of growth in the cell processing platform and the long-term outlook for adjusted EBITDA margins post-divestitures.

Answer

CEO Roderick de Greef identified the base of 17 commercial CGT customers as the fundamental driver for 2025 growth. Executive Troy Wichterman projected adjusted EBITDA margins in the mid-20s for 2025, with the potential to reach the 30s in 2026, contingent on continued biopreservation media growth and its high margin flow-through.

Anna Snopkowski of KeyBanc asked if the SciSafe divestiture alters the company's strategy for the potential sale of its CBS freezer business. She also questioned whether customer destocking has now fully normalized within the cell processing segment.

Answer

CEO Roderick de Greef confirmed that the company is 'in the throes of a transaction' for the CBS business and remains committed to exiting it, reinforcing the strategy to focus on core cell processing products. He also stated that Q3 was a normalized quarter and that the company believes the customer destocking issue is now behind them.

Anna Snopkowski asked about the competitive positioning of the new Pluristics collaboration product, whether it targets existing or new customers, and its potential material impact in 2025. She also inquired about the company's exposure to vaccines following the new CBER appointment.

Answer

President and CEO Stephen Gunstream explained that the Pluristics collaboration helps build out Teknova's cell therapy workflow and targets both existing and new customers in areas like stem cell research. He stated that while the customer response is enthusiastic, a material revenue impact is not expected in 2025 but should build in 2026-2027. Regarding CBER, Gunstream noted it's too early to tell the impact of the new appointment and confirmed Teknova does not have significant exposure to the vaccine space, with the main risk being second-order effects on biotech funding.

Anna Snopkowski, on for Paul Knight, inquired about the drivers behind the significant 37% Q4 increase in commercial revenue and the outlook for the MVE (product) business stabilization in 2025.

Answer

Chief Scientific Officer Dr. Mark W. Sawicki explained the commercial revenue growth was broad-based, stemming from earlier line approvals, five new therapy launches, and geographic expansion. Executive Jerrell Shelton confirmed they see stabilizing order patterns in the MVE business and expect that trend to continue progressing through 2025.