Repligen (RGEN -8.08%), a bioprocessing technology company, announced its earnings for the fourth quarter on Feb. 20. The company's adjusted earnings per share (EPS) of $0.44 exceeded analysts' consensus estimate of $0.41, but fell year over year. Revenue of $168 million, meanwhile, came in modestly above expectations of $167 million and up from $167 million in the prior-year period. However, its GAAP gross margin declined significantly to 23.2% from 47.1% a year prior, raising concerns about its operational efficiency.
| Metric | Q4 2024 | Q4 2024 Analysts' Estimate | Q4 2023 | % Change |
|---|---|---|---|---|
| EPS (adjusted) | $0.44 | $0.41 | $0.48 | (8.3%) |
| Revenue | $168 million | $167 million | $167 million | 0.6% |
| GAAP gross margin | 23.2% | N/A | 47.1% | (2,390 basis points) |
| Adjusted gross margin | 50.7% | N/A | 52.5% | (180 basis points) |
Source: Analyst estimates for the quarter provided by FactSet.
Overview of Repligen
Repligen is a leader in the development and production of innovative technologies used in the manufacturing of biological drugs, including therapeutic antibodies, vaccines, and cell and gene therapies.
Recently, it has been concentrating on technological advancements and strategic acquisitions. By innovating its four main franchises -- filtration, chromatography, process analytics, and proteins -- the company seeks to improve manufacturing efficiencies. Additionally, acquisitions such as Tantti Laboratory have enhanced its product portfolio and market position.
NASDAQ: RGEN
Key Data Points
Quarterly Performance Highlights
In the fourth quarter, Repligen's performance was mixed. Adjusted earnings per share (EPS) surpassed analysts' expectations by about 7%, and revenue slightly exceeded estimates. However, the company's GAAP gross margin plummeted to 23.2%, a stark contrast to the prior year's 47.1%, mainly due to restructuring costs, severance costs, and write-offs.
Significant events included the launch of AVIPure dsRNA resin, which removes impurities from mRNA-based therapeutics. This move is part of a broader strategy to innovate its product line. Repligen also completed the acquisition of Tantti Laboratory, bolstering its protein and chromatography capabilities. However, despite these successes, the costs involved in its restructuring and layouts resulted in a GAAP operating loss of $37 million compared to GAAP income of $10 million in the prior-year period.
Sector-wise, its CDMO (contract development and manufacturing organization) and capital equipment segments saw notable recoveries, with revenues rising sequentially by about 20% and 30%.
Looking Ahead
For 2025, Repligen projects revenue growth of 8% to 12% (or 10% to 14% when excluding COVID-related earnings). Management expects the adjusted EBITDA margin to land in the 20% to 21% range, up from 18.5% for 2024, but in line with the 20.9% result it achieved in Q4. Moreover, it guided for adjusted EPS of between $1.67 and $1.76, up from $1.58 in 2024.
Investors should keep an eye on Repligen's acquisition strategy and its expanding market penetration efforts, particularly in regions like Asia and Europe. These initiatives will be crucial to sustaining growth. Growth in the biologics sector and further product innovations could significantly impact Repligen's future performance.
