Mac Etoch is an Analyst specializing in healthcare at Stephens Inc., where he covers companies such as Stevanato Group and Cryoport, focusing on medical devices and life sciences. Etoch has demonstrated expertise in tracking sector performance and company guidance trends, engaging with management teams of major biopharma and device firms. His analyst career has been highlighted by active participation in industry earnings calls and research, leveraging a robust understanding of healthcare market dynamics with actionable insights. Etoch is registered as both an Investment Adviser and Broker with FINRA, holding the national CRD number 6699734 and operating out of Stephens' Dallas office.
Mac Etoch asked for clarification on the proportion of MRD revenues in fiscal 2025, given the projected 1-2 points of growth from MRD in fiscal 2026.
Adam Laponis, CFO, stated that the MRD business is currently a relatively small percentage of the overall NGS business in 2025 but is growing significantly faster than the overall business, a trend expected to continue beyond 2026.
Mac Etoch asked for clarification on the proportion of minimal residual disease (MRD) revenues in fiscal 2025, given the projected 1-2 points of growth from MRD in fiscal 2026.
Adam Laponis, CFO, stated that the MRD business represented a relatively small percentage of the overall NGS business in fiscal 2025, but it is growing significantly faster than the overall NGS business, a trend expected to continue beyond 2026.
Mac Etoch inquired about Repligen's Asia Pacific geographical performance (up 50% in Q3), the impact of recent investments, variables driving this growth, and plans for additional resource allocation in the region.
Olivier Loeillot, President and CEO, acknowledged Asia Pacific's underrepresentation (15% of sales) and detailed strategic investments, including new leadership for Asia and China, rebuilding teams, and tackling local competition. He mentioned building infrastructure and adding field personnel outside China, noting strong growth outside China for several quarters and China's return to sales growth in Q3. He confirmed further investments, including new offices in Singapore and Japan.
Mac Etoch asked about Repligen's geographical performance, specifically the 50% growth in Asia Pacific this quarter, the trends of recent investments in the region, the variables driving this performance, and the company's intent to invest additional resources given its long-term strategic focus.
President and CEO Olivier Loeillot acknowledged that Asia Pacific, representing approximately 15% of full-year sales, is currently too low compared to competitors' 20-25% benchmark. He detailed increased investments in the region, separating China from the rest of Asia Pacific. For China, the strategy involves rebuilding the team and addressing stronger local competition. For the rest of Asia, it focuses on building infrastructure, adding field personnel, and engaging directly with customers. Loeillot noted strong growth outside China for several quarters and China's return to sales growth in Q3 (though orders were softer). He confirmed further investments, including new offices in Singapore and Japan.
Mac Etoch from Stephens Inc. asked for an update on the progress of the RUO Plus initiative and questioned if there were any abnormal ordering patterns or timing issues to note within the Clinical Solutions segment.
CEO Stephen Gunstream reported that the RUO Plus initiative is trending as expected, serving as a key bridge for preclinical customers moving toward GMP. CFO Matt Lowell added that while the Clinical Solutions segment remains lumpy due to large order sizes, the quarter's performance was within the normal range of fluctuation and showed positive long-term trends.
Mac Etoch of Stephens Inc. asked for an update on the bioprocessing market and the factors contributing to the significant sequential increase in the Life Sciences segment's backlog.
Daniel Carestio, President & CEO, stated that bioprocessing volumes have stabilized and returned to a more predictable, normal trajectory after a period of volatility. He attributed the strong Life Sciences backlog growth to the completion of a cyclical downturn in pharma capital spending, which has led to a robust rebound in customer order intake.
Mac Etoch of Stephens Inc. asked for more detail on the puts and takes within the cell and gene therapy end market given current funding challenges. He also inquired about the potential size of the opportunity for Simple Western instruments within cell and gene therapy workflows.
President & CEO Kim Kelderman explained that despite a depressed biotech funding environment, later-stage cell and gene therapy companies are continuing to invest, driving the portfolio's resilient 20% growth. While not quantifying the specific opportunity, he and CFO James Hippel noted that interest in Simple Western and Maurice platforms for downstream applications, including cell therapy, is clearly growing, particularly among both large pharma and later-stage biotech customers.
Mac Etoch of Stephens Inc. asked about customer feedback on Cryoport becoming more carrier-agnostic post-DHL deal and the expected long-term margin profile of the IntegraCell business.
Chief Scientific Officer Dr. Mark Sawicki reported 'extremely positive' customer feedback, citing excitement around increased flexibility. President & CEO Jerrell Shelton added that the partnership is just beginning. Regarding IntegraCell, Dr. Sawicki confirmed that its gross margin profile at maturity is expected to be in the 60% range, consistent with the company's broader services business.
Mac Etoch of Stephens Inc. asked where Stevanato is best positioned to benefit from recent U.S. onshoring announcements by pharma companies and if they are seeing incremental interest in their Fishers plant or Engineering offerings.
CEO Franco Stevanato confirmed a strategic shift by clients to increase U.S. capacity since March 2025. He stated Stevanato is well-positioned to benefit from increased demand for its Engineering technologies and by offering a U.S.-based supply chain for high-value products and devices from its Fishers, Indiana facility.
Mac Etoch from Stephens Inc. followed up on Annex One, asking if the recent addition of projects would lead to a proportional growth contribution in 2026 as they ramp up.
CEO Eric Green explained that while the growing project pipeline is a positive indicator for the future, the conversion to revenue is a multi-quarter process that can range from two to over four quarters per project. He characterized it as a multi-year ramp that began in 2024 and will continue, rather than a simple proportional increase year-over-year.
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