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Repligen Corporation
Jefferies Global Healthcare Conference
Investor Presentation
June 6, 2019
2 2 2
Safe Harbor This presentation contains forward looking statements which are made pursuant to the
safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements are
subject to risks and uncertainties which may cause our plans to change or actual results to
differ materially from those anticipated. In particular, unforeseen events outside of our
control may adversely impact future results. Additional information concerning these
factors is discussed in our reports filed with the Securities and Exchange Commission
including recent Form 8-Ks, our most recent Annual Report on Form 10-K and our most
recent Quarterly report on form 10-Q. The forward looking statements in this presentation
reflect management’s current views and may become obsolete as a result of new
information, future events or otherwise. We may not update such forward looking
statements to reflect a change of events or circumstances that occur after the date hereof,
except as required by law. The industry and market data contained in this presentation are
based on management’s own estimates, independent publications, government
publications, reports by market research firms or other published independent sources,
and, in each case, are believed by management to be reasonable estimates. Although we
believe these sources are reliable, we have not independently verified the information.
3 3 3
Repligen Overview
4 4 4
Repligen Snapshot
An industry leader in
• Addressing needs for efficient, single-use,
flexible manufacturing
• Differentiated products with increasing
brand recognition
• Disruptive technologies at earlier stages
of adoption
• Rapidly growing through successful
diversification
• Supported by a robust and expanding
global biologics market
• Multiple manufacturing facilities
Bioprocessing innovator
Proteins
Filtration
Chromatography
Other
Consumables
Equipment
2018 REVENUE
$194M TOTAL REVENUE
55% GROSS MARGIN
37% | 17% OVERALL | ORGANIC REVENUE GROWTH
22% EBITDA MARGIN
2018
548 EMPLOYEES / 54 FIELD
5 5 5
Robust, Expanding End Markets
Biologic drug approvals on the rise Monoclonal antibodies
Rapidly emerging classes of biologics Beyond monoclonal antibodies
Major investments in capacity and new facilities
Increasing adoption of single-use and continuous technology
“In the next 4 years, capacity will increase over 40%...
with 48 companies expanding or building new capacity”2
1. SDI Bioprocessing Market Analysis and Perspectives, Sept. 2018 2. BPTC / Repligen Analyst Day, Sept. 2017 3. Allied Market Research Single-use Bioprocessing Market, June 2018
~$9B
85+ marketed
>50% since 2015
>400 in the clinic
$3.9B 2018 SU market1
>15% CAGR thru
20233
2018 bioprocessing market
8.7% CAGR thru 2022
Gene therapy Cell therapy
Nanoparticles
Unmet manufacturing needs = opportunities
6 6 6
Our Addressable Markets
~$475M
~$180M
~$900M
Filtration ~10% share 2018 organic growth 29% Market leader in perfusion Taking share UF/DF
Chromatography ~25% share 2018 organic growth 25% Market leader in pre-packed columns
Winning market share with differentiated technology
~$1.6B
Proteins ~10% share 2018 organic growth “flat” Market leader in Protein A ligands Developing next-gen products
7 7 7
Repligen Blueprint for Growth
Deliver results and create value for customers and shareholders
2014-2018
4 ACQUISITIONS
>$200M CUMULATIVE
INCREMENTAL REVENUE
4 YEARS
32% REVENUE CAGR
4-year 2014-2018
14%
4% 8%
14%
60%
Oth
er
Ge
ne
The
rap
y
Vac
cin
es
rPro
tein
s
mA
bs
Percentage revenue by biologic type • Transform bioprocessing
through high-impact technology innovation
• Strengthen market leadership and brand by delivering flexible, single-use solutions
• Accelerate growth through disciplined M&A
• Scale to meet demand
• Position portfolio for future growth; expand on mAb success
Our Focus:
estimates as of 2017, post Spectrum acquisition
8 8 8
Track Record of Performance
Successful Diversification Strategy
Execution on building a direct presence with strong brands…
REV
ENU
E ($
M)
…Is driving increased revenue and profitability
Proteins (OEM) Filtration (Direct) Other Chromatography (Direct)
2018 $193.9M product revenue
2014 $60.4M product revenue
29% DIRECT
72% DIRECT
Revenue figures above exclude non-product “royalty and other” revenue of $3.1M in 2014 and $0.1M in 2018
$0.24
$0.44
$0.49
$0.69
$0.73
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$0
$40
$80
$120
$160
$200
$240
FY 14 FY 15 FY 16 FY 17 FY 18
Ad
j. EPS* (Earn
ings P
er Sh
are, fu
lly dilu
ted
)
* Non-GAAP financial measures; see reconciliation tables in appendix
9 9 9
Internal Innovation is Key to our Growth
High Performance
Affinity Ligands
Bringing Industry “Firsts” to Market
OPUS® R Pre-packed Columns
Single-use XCell™ ATF Perfusion Systems
Single-use TangenX™ Flat Sheet TFF
Single-use KrosFlo® Integrated TFF Skids
Establishing Key Partnerships to Expand
Market Position
Next-generation Protein A ligands
Integrated perfusion
bioreactors
Focused on High Impact Technology Innovation
10 10 10
Disciplined M&A to Accelerate Growth
JUNE 2014 APRIL 2016 DEC. 2016 AUG. 2017 Acquisition Year
Filtration leadership in perfusion - XCell™ ATF
KEY BENEFIT Entry point for PPC in process development – OPUS® PD
Downstream single-use filtration – SIUS™ TFF
Hollow fiber filtration and system portfolio –
KrosFlo™TFF Sales force Asia
Acquisition Criteria
• Technology leadership • Strengthens direct portfolio • Gross margins at corporate target
• Operational/commercial leverage • Potential to be accretive on adj. EPS first full year • Expands addressable markets
Revenue gains of ~24%-40% in first full year of ownership
Acquisition
11 11 11
Acquisition of C Technologies
12 12 12
C Technologies Meets All of Repligen’s Acquisition Criteria
5th acquisition since 2014
Technology leadership in bioprocessing
• A gold standard in protein concentration measurement, highly differentiated
Strengthens and expands Repligen portfolio
• Establishes core Process Analytics franchise
Operational and commercial leverage
• Leverages our investments in global market presence, systems
• Planned investment in C Technologies’ commercial organization and R&D
Potential to increase revenue, improve gross margin profile for Repligen
• C Technologies’ 2018 year-over-year revenue growth was 22%
• Gross margin and operating margin above Repligen’s corporate average
Expected to be accretive to adjusted EPS for all periods
~$240M purchase (~$192M cash, $48M shares) = 8x-9x 2019E Revenue
13 13 13
Customer Call points • Process development analytics • Manufacturing suites • Quality control labs • Formulation labs Headquarters: Bridgewater, NJ Founded: 1985 by Craig Harrison Employees: 70 Certification: ISO 9001:2015 Sales: U.S. direct, EU and Asia distributors
$13.8 $14.9
$19.4
$23.7
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2015 2016 2017 2018
C Technologies Company Profile
Developer of novel Slope Spectroscopy® for measuring protein concentration
Strong revenue growth, attractive margins Instruments, Software and Consumables
Gross margin: Low-to-mid 60%s
Rev
enu
e ($
Ms)
Industry standard for offline and at-line
concentration measurement
In-line concentration measurement enabling
real-time process monitoring
CAGR 19.7% 2015-2018
SoloVPE Fibrettes™ FlowVPE Fibrette™
and Flow Cells
90%
10%
Process Analytics
Legacy
2018 Sales
Process Analytics
~80% instruments, software, consumables
~20% service, support
Projected 2019 product revenue (pro forma): $27M - $29M
14 14 14
47%
23%
28%
2%
41%
21%
25%
2%
11%
Process Analytics Further Diversifies our Bioprocessing Portfolio
Adds 4th Franchise – Process Analytics
Repligen Revenue 2018
Combined Revenue Pro Forma 20181
$194M $218M
Filtration Chromatography Proteins Process Analytics
1 Assumes full-year 2018 contribution from C Tech acquisition. Includes pro forma estimated adjustment to decrease assumed deferred revenue obligations to fair value.
Other
15 15 15
Financial Snapshot
16 16 16
First Quarter 2019
• Record quarterly revenue of $60.6 million
• Revenue growth 35% year-over-year, 37% organic
• Gross margin 55.7%
• Operating margin expansion of 500 bps (GAAP and Adjusted)
• Earnings per FD share increased to $0.17 GAAP and $0.28 adjusted
• Increased from $0.08 GAAP and $0.17 adjusted EPS in Q1 2018
• All 3 franchises grew 25%+
• XCell™ ATF up 75% year-over-year
• Hollow fiber single-use flow path assemblies up >50%
• OPUS® pre-packed columns up >40%
• Gene therapy account expansion for SIUS™ TFF, OPUS®
Strong Q1 Performance and Guidance Raise
Q1 Financial Highlights
Q2 Business Highlights
17 17 17
Financial Snapshot ($s Millions except EPS) 2017 2018
2019 Guidance*
Revenue $141.2 $194.0 $235-$241
Revenue Growth (overall) 35% 37% 21%-24%
Gross Margin (GAAP) 52.5% 55.4% 56%-57%
Operating Income (GAAP) $14.0 $26.0 $39-$42
Operating Income (Adj.) $31.6 $39.4 $52-$55
Net Income (GAAP) $28.4 $16.6 $24.5-$27.5
Net Income (Adj) $27.2 $33.3 $41-$44
EPS diluted (GAAP) $0.72 $0.37 $0.50-$0.56
EPS diluted (Adj.) $0.69 $0.73 $0.84-$0.90
Cash & cash equivalents YE $173.8 $193.8 $190-$195
Fully diluted shares YE (M) 39.2 45.5 48.7M
EBITDA (Adj.) $35.1 $45.0 $60-$63
R&D: ~7%
Adj. operating margin: 22%-23%
GAAP tax: ~25%
Adj. tax: ~20%
Cap Ex: ~$18-$20M
* Excludes C Technologies
Additional 2019 Guidance
See Appendix for GAAP to non-GAAP reconciliation tables
18 18 18
Well Positioned for Future Growth
• Four franchises focused on technology leadership
• Broad portfolio of high impact products for flexible manufacturing; single-use and continuous solutions
• Large total addressable market: ~$2.1B
• Estimated two years of investment in C Technologies’ commercial and R&D organizations
• R&D engine supporting all franchises to accelerate global growth and launch next-generation, disruptive products
• Healthy end market acceleration for biologics, including gene therapies
• Increased visibility to long-term revenue and profitability goals
FILTRATION KrosFlo®,
Pro-Connex®, XCell™,TangenX™
CHROMATOGRAPHY OPUS®
NGL® Impact-A, Resins
PROTEINS Ligands, cell
culture growth factors
PROCESS ANALYTICS SoloVPE FlowVPE ELISA Kits
Revenue goal of $400-$500M by 2023
19 19 19
Thank you!
20 20 20
Appendix A: C Technologies
21 21 21
C Technologies Slope Spectroscopy®
• C Technologies’ instruments dynamically vary the pathlength of light traveling through the sample and take multiple measurements of protein concentration
• Embedded software accurately calculates the concentration of the sample in under 1 minute without sample dilution
Slope Spectroscopy™ Overview
Background
• Protein concentration measurements are typically measured using a fixed pathlength UV-Vis spectrophotometer
• Traditional spectrophotometers require samples to be manually diluted to estimate protein concentration
• Sample dilutions can introduce large sources of measurement errors
C Technologies developed and patented a simple, robust method for measuring protein concentration
Key process benefits for biopharma customers:
• Direct measurement of a sample
• Eliminates time-consuming sample dilutions
• Simple and more accurate concentration measurements
• Eliminates errors inherent with sample prep and dilution
• Improves process efficiency
22 22 22
Appendix B: GAAP to non-GAAP Reconciliations
23
2018 & 2017 Reconciliation of GAAP to Non-GAAP Income from Operations and Net Income
2018 2017
GAAP INCOME FROM OPERATIONS 25,988$ 14,005$
Acquisition and integration costs 2,928$ 7,519
Inventory step-up charges -$ 3,816
Intangible amortization 10,518$ 6,215
ADJUSTED INCOME FROM OPERATIONS 39,434$ 31,555$
2018 2017
GAAP NET INCOME 16,617$ 28,353$
Acquisition and integration costs 2,928 7,519
Inventory step-up charges - 3,816
Intangible amortization 10,518 6,215
Non-cash interest expense 4,248 3,977
Tax effect of intangible amortization and acquisition costs (979) (882)
Release of valuation allowance on deferred tax assets - (12,236)
Net impact of tax reform legislation - (9,586)
ADJUSTED NET INCOME 33,332$ 27,176$
REPLIGEN CORPORATION
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP (ADJUSTED) INCOME FROM OPERATIONS
(Unaudited, amounts in thousands)
Twelve Months Ended
December 31,
ADJUSTMENTS TO INCOME FROM OPERATIONS:
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED) NET INCOME
(Unaudited, amounts in thousands)
Twelve Months Ended
December 31,
ADJUSTMENTS TO NET INCOME:
24
2018 & 2017 Reconciliation of GAAP to Non-GAAP Net Income per Share
2018 2017
GAAP NET INCOME PER SHARE - DILUTED 0.37$ 0.72$
Acquisition and integration costs 0.06 0.19
Inventory step-up charges - 0.10
Intangible amortization 0.23 0.16
Non-cash interest expense 0.09 0.10
Tax effect of intangible amortization and acquisition costs (0.02) (0.02)
Release of valuation allowance on deferred tax assets - (0.31)
Net impact of tax reform legislation - (0.24)
ADJUSTED NET INCOME PER SHARE - DILUTED 0.73 0.69$
Totals may not add due to rounding.
ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED:
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP (ADJUSTED) NET INCOME PER SHARE
(Unaudited)
Twelve Months Ended
December 31,
25
2018 & 2017 Reconciliation of EBITDA to Adjusted EBITDA
2018 2017
GAAP NET INCOME 16,617$ 28,353$
Investment Income (1,895) (371)
Interest Expense 6,709 6,441
Tax Provision 4,819 (21,105)
Depreciation 5,213 4,237
Amortization 10,565 6,215
EBITDA 42,028 23,770
OTHER ADJUSTMENTS:
Acquisition and integration costs 2,928 7,519
Inventory step-up charges - 3,816
ADJUSTED EBITDA 44,956$ 35,105$
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(Unaudited, amounts in thousands)
Twelve Months Ended
December 31,
ADJUSTMENTS:
26
2019 Guidance Reconciliation GAAP to Non-GAAP Net Income and Net Income per Share
(in thousands)Low End High End
GUIDANCE ON NET INCOME 24,500$ 27,500$
ADJUSTMENTS TO GUIDANCE ON NET INCOME:
Acquisition and integration costs 2,665 2,665
Anticipated pre-tax amortization of
acquisition-related intangible assets 10,355 10,355
Non-cash interest expense 4,538 4,538
Tax effect of intangible amortization and integration (1,085) (1,085)
Guidance rounding adjustment 27 27
GUIDANCE ON ADJUSTED NET INCOME 41,000$ 44,000$
Low End High End
GUIDANCE ON NET INCOME PER SHARE - DILUTED $0.50 $0.56
ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED:
Acquisition and integration costs $0.05 $0.05
Anticipated pre-tax amortization of
acquisition-related intangible assets $0.21 $0.21
Non-cash interest expense $0.09 $0.09
Tax effect of intangible amortization and integration ($0.02) ($0.02)
Guidance rounding adjustment $0.00 $0.00
GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED $0.84 $0.90
Totals may not add due to rounding.
Twelve months ending December 31, 2019
REPLIGEN CORPORATIONRECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED (NON-GAAP NET INCOME GUIDANCE)
Twelve months ending December 31, 2019
REPLIGEN CORPORATIONRECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE TO
ADJUSTED (NON-GAAP) NET INCOME PER SHARE GUIDANCE