Full Press Release Details
Repligen Reports First Quarter 2014 Financial Results
- Product Revenue Increases 20% to a Record $14.3 Million -
- Net Income Increases 83% to $4.3 Million -
- Conference Call and Webcast Today at 8:30 a.m. EDT -
WALTHAM, MA May 8, 2014 Repligen Corporation (NASDAQ:RGEN) today reported financial results for the first quarter ended
March 31, 2014. Below are the Company s financial and business highlights for the quarter as well as financial guidance for the year 2014. Also included is access information for today s webcast and conference call.
Financial Highlights:
Total revenue of $16.3 million for the first quarter of 2014 included a one-time upfront payment of $2.0 million from BioMarin Pharmaceutical Inc.
( BioMarin ) under our therapeutic asset purchase agreement announced on January 21, 2014. The first quarter of 2013 included royalty revenue of $3.8 million from Bristol-Myers Squibb on its U.S. sales of Orencia under an agreement that expired on December 31, 2013. Operating expenses for the three-month period ended March 31, 2014 were $11.0 million compared to $12.9 million for the same period
in 2013, a decrease of $1.9 million or 15%. This decrease was primarily due to a $562,000 reduction in cost of product revenue as a result of improved manufacturing efficiencies and a $982,000 decrease in research and development expense as a result
of the Company s decision in 2012 to discontinue its therapeutic development activities, partially offset by an increase in bioprocessing product R&D.
During the first quarter of 2014 our growth was driven by continued strong demand for Protein A affinity ligands and our OPUS pre-packed chromatography columns. The combination of robust sales growth, higher gross margins and a lower tax rate positively impacted the first quarter results for our bioprocessing business,
enabling the company to deliver improved earnings despite a decrease in royalty and other revenue, said Walter C. Herlihy, Ph.D., President and CEO of Repligen.
Financial Guidance for 2014
Based on our first quarter
performance, we are revising our financial guidance for the year 2014. The following guidance is based on expectations for our existing business and does not include the impact on our revenue and expenses of potential milestone payments from Pfizer
or BioMarin, the financial impact of any potential bioprocessing acquisitions or fluctuations in foreign currency exchange rates.
Recent Business Updates
Repligen will host a conference call and webcast today, May 8, at 8:30 a.m. EDT, to discuss first quarter 2014 financial results and business updates. The
live call can be accessed by dialing toll-free (844)835-7432 for domestic callers or (404)537-3372 for international callers. Dial-in participants must provide the passcode 35070834. In addition, a webcast will be accessible via the Investor
Relations section of Repligen s website www.repligen.com; see Events & Presentations. Both the conference call and webcast will be archived for a period of time following the live event. The replay dial-in numbers are (855)859-2056 for
domestic callers and (404)537-3406 for international callers. Replay listeners must provide the passcode 35070834.
About Repligen Corporation
Repligen Corporation (NASDAQ:RGEN) is a life sciences company focused on the development, production and commercialization of high-value consumable products
used in the process of manufacturing biological drugs. Our bioprocessing products are sold to major life sciences and biopharmaceutical companies worldwide. We are the leading manufacturer of Protein A affinity ligands, a critical component of
Protein A media that is used to separate and purify monoclonal antibody therapeutics. Our growth factor products are used to increase cell growth and product yield during the fermentation stage of biologic drug manufacturing. In addition, we
developed and market an innovative line of plug-and-play chromatography columns named OPUS (Open Platform User Specified) that we deliver pre-packed to our biopharmaceutical
customers with their choice of purification media. Repligen s corporate headquarters are in Waltham, MA (USA) and our manufacturing facilities are located in Waltham, MA and Lund, Sweden.
This press release 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. Investors are cautioned that statements in this press release which are not strictly historical statements, constitute forward-looking statements, including,
without limitation, express or implied statements or guidance regarding future financial performance and position, including cash and investment position, our strategic decision to focus on the growth of our bioprocessing business, the future demand
for our bioprocessing, growth factor and chromatography products, our launch of large-scale pre-packed chromatography columns and suitability for larger-scale manufacturing, plans and objectives for future operations, our receipt of any future
payments under the terms of our agreement with Pfizer and our agreement with BioMarin, plans and objectives for product development and acquisitions, our market share and product sales and other statements identified by words like
believe, expect, may, will, should, seek, anticipate, or could and similar expressions. Such forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with: our ability to successfully grow our bioprocessing business, including as a result of acquisition,
commercialization or partnership opportunities; our ability to develop and commercialize products and the market acceptance of our products; reduced demand for our products that adversely impacts our future revenues, cash flows, results of
operations and financial condition; the impact of the expiration on December 31, 2013 of Bristol-Meyers Squibb royalty payments from U.S. sales of Orencia , the success of current and
future collaborative or supply relationships, including our agreement with Pfizer and our agreement with BioMarin; our ability to compete with larger, better financed bioprocessing, pharmaceutical and biotechnology companies; our compliance with all
Food and Drug Administration and EMEA regulations; our ability to obtain, maintain and protect intellectual property rights for our products; the risk of litigation regarding our intellectual property rights; our limited sales capabilities; our
volatile stock price; and other risks detailed in Repligen s Annual Report on Form 10-K on file with the Securities and Exchange Commission and the other reports that Repligen periodically files with the Securities and Exchange Commission.
Actual results may differ materially from those Repligen contemplated by these forward-looking statements. These forward looking statements reflect management s current views and Repligen does not undertake to update any of these
forward-looking statements to reflect a change in its views or events or circumstances that occur after the date hereof except as required by law.
Director Investor Relations
Repligen Corporation
REPLIGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 14,334,687 | $ | 11,934,269 | ||||
| Royalty and other revenue | 1,991,166 | 4,521,724 | ||||||
| Total revenue | 16,325,853 | 16,455,993 | ||||||
| Operating expenses: | ||||||||
| Cost of product revenue | 6,335,064 | 6,896,608 | ||||||
| Cost of royalty revenue | 576,857 | |||||||
| Research and development | 1,200,990 | 2,183,404 | ||||||
| Selling, general and administrative | 3,383,610 | 3,308,099 | ||||||
| Contingent consideration - fair value adjustments | 98,320 | (53,974 | ) | |||||
| Total operating expenses | 11,017,984 | 12,910,994 | ||||||
| Income from operations | 5,307,869 | 3,544,999 | ||||||
| Investment income | 101,816 | 61,519 | ||||||
| Interest (expense) income | (14,085 | ) | (13,531 | ) | ||||
| Other (expense) income | 2,505 | 29,081 | ||||||
| Income before income taxes | 5,398,105 | 3,622,068 | ||||||
| Income tax provision (benefit) | 1,121,002 | 1,283,832 | ||||||
| Net income | $ | 4,277,103 | $ | 2,338,236 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.13 | $ | 0.07 | ||||
| Diluted | $ | 0.13 | $ | 0.07 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 31,962,843 | 31,240,606 | ||||||
| Diluted | 32,831,019 | 31,855,428 | ||||||
| Comprehensive income | $ | 4,136,134 | $ | 2,079,645 | ||||
| March 31, 2014 | December 31, 2013 | |||||||
| Balance Sheet Data: | ||||||||
| Cash, cash equivalents and marketable securities* | $ | 81,665,537 | $ | 73,841,805 | ||||
| Working capital | 81,575,055 | 75,049,428 | ||||||
| Total assets | 119,334,391 | 118,644,904 | ||||||
| Long-term obligations | 3,360,477 | 3,457,631 | ||||||
| Accumulated deficit | (84,780,319 | ) | (89,057,422 | ) | ||||
| Stockholders equity | 108,851,532 | 103,886,102 |