Repligen (RGEN) Stifel 2024 Healthcare Conference summary

Market exposure and industry trends

• Exposure to US vaccines is limited to about 4% of total business, with half related to mRNA, much of which is cancer therapeutics rather than traditional vaccines.

• Academic and government-funded business in the US is below 1%, minimizing risk from policy changes.

• No significant customer concerns have emerged regarding recent political developments or potential changes in HHS leadership.

• The BIOSECURE Act is benefiting US-based CDMOs, offsetting some losses in China and providing a net positive impact.

Business performance and segment analysis

• Achieved double-digit top-line growth in Q3, with strong order intake from both pharma and CDMO segments.

• Pharma orders are up mid-teens year-to-date, reaching the highest level in three years.

• CDMO orders and sales rose over 20%, with both large and small CDMOs performing well.

• New modalities saw order and sales growth in the mid- to high-teens year-to-date.

• Emerging biotech remains a weak spot, with funding trends declining through the year and clinical trial starts down 17% in the US.

Order trends and customer diversification

• Order sizes have increased, particularly in ATF, which saw sales rise over 50% in Q3 due to late-phase project design-ins.

• Top 20 accounts represent only 50% of sales, indicating broad customer diversification and growth potential.

• Key account management is driving deeper relationships and facilitating adoption of new technologies across customer processes.