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Repligen Corp (RGEN)
NASDAQ:RGEN
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Repligen
(NASDAQ:RGEN)
58Neutral
Positive Factors
Financial Performance
The company is expected to experience margin recovery with more than 200 basis points per year improvement.
Growth Strategy
RGEN to prioritize M&A to drive scale and platform depth, targeting two deals per year and recently acquiring MASS’s bioprocessing assets.
Market Position
The acquisition is anticipated to strengthen Repligen's market position and expand its product offerings.
Negative Factors
Funding Risks
Biotech funding trends pose medium-term risk as funding remains under pressure, with RGEN's NIH exposure at ~0.5%.
Macroeconomic Sensitivity
Repligen's recovery process could face challenges due to sensitivity to a volatile macro environment.
Valuation Concerns
The current demanding valuation is seen as difficult to justify, leading to a preference to wait for greater macro certainty.
Repligen (RGEN) vs. S&P 500 (SPY)
Market Cap
$6.29B
Dividend YieldN/A
Average Volume (3M)769.60K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth0.33%
EPS Growth-171.08%
CountryUS
Employees1,778
SectorHealthcare
Sector Strength76
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.46
Shares Outstanding56,148,556
10 Day Avg. Volume872,870
30 Day Avg. Volume769,597
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12.52
Price to Cash Flow (P/CF)50.20
P/FCF Ratio50.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$190.55Price Target Upside70.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Repligen Business Overview & Revenue Model
Company DescriptionRepligen Corporation is a global life sciences company that focuses on the development, production, and commercialization of innovative bioprocessing technologies and systems. Operating primarily within the bioprocessing sector, Repligen provides critical products and services to support the manufacturing of biological drugs, including monoclonal antibodies, recombinant proteins, and gene therapies. The company's core offerings include filtration, chromatography, and analytics products that enhance process efficiencies and scalability for biopharmaceutical companies.
How the Company Makes MoneyRepligen makes money by selling its bioprocessing products and services to biopharmaceutical companies and other entities involved in the production of biological drugs. The company's revenue model is primarily based on the sale of its filtration, chromatography, and analytics products, which are integral to the biomanufacturing process. Repligen's key revenue streams include direct product sales, service agreements, and licensing arrangements. The company also benefits from strategic partnerships and collaborations with leading biopharmaceutical firms, which help expand its market reach and enhance its technological capabilities. Additionally, Repligen invests in research and development to continuously innovate and improve its product offerings, further driving its revenue growth.
Repligen Financial Statement Overview
Summary
Repligen's financial performance shows stability in revenue but is challenged by profitability and cash flow issues. Despite a strong equity base, the negative net income and absence of cash flow data raise concerns about long-term financial health.Income Statement
Repligen's revenue remained relatively stable from 2023 to 2024, but the company experienced a negative net income in 2024, indicating potential profitability challenges. The gross profit margin is strong, but the negative EBIT margin in 2024 highlights operational inefficiencies. While revenue growth was positive in earlier years, recent stagnation could be concerning.65
Positive
Balance Sheet
The balance sheet shows a solid stockholders' equity base with no total debt reported in 2024, which reduces financial risk. However, the negative total liabilities in 2024 need clarification. The equity ratio is high, reflecting a strong capital position, but the return on equity has turned negative due to the net loss.72
Positive
Cash Flow
The absence of operating and free cash flow data in 2024 is troubling, suggesting potential liquidity issues. Historical cash flow growth was strong but seems to have declined, which may affect the company's ability to invest and finance operations effectively.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 634.44M | 632.36M | 801.54M | 670.53M | 366.26M | Gross Profit |
| 274.64M | 308.83M | 455.71M | 391.25M | 209.63M | EBIT |
| -35.11M | 47.70M | 133.61M | 133.50M | 42.54M | EBITDA |
| 113.34M | 127.77M | 246.93M | 211.56M | 101.62M | Net Income Common Stockholders |
| -25.51M | 35.60M | 185.96M | 128.29M | 59.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 757.36M | 751.32M | 623.76M | 603.81M | 717.29M | Total Assets |
| 2.83B | 2.83B | 2.52B | 2.36B | 1.90B | Total Debt |
| 686.25M | 711.80M | 422.96M | 366.05M | 275.42M | Net Debt |
| -71.11M | -39.52M | -100.50M | -237.76M | -441.88M | Total Liabilities |
| 856.95M | 866.34M | 613.96M | 608.29M | 373.74M | Stockholders Equity |
| 1.97B | 1.97B | 397.27M | 1.75B | 65.77M |
| Cash Flow | Free Cash Flow | |||
| 142.49M | 74.93M | 38.74M | 47.74M | 36.28M | Operating Cash Flow |
| 175.39M | 113.92M | 172.08M | 119.02M | 62.63M | Investing Cash Flow |
| -86.38M | -123.28M | -233.24M | -221.17M | -201.38M | Financing Cash Flow |
| -82.90M | 248.96M | -13.34M | 961.00K | 305.92M |
Repligen Technical Analysis
Negative
111.94
Price Trends
150.41
Negative
149.87
Negative
145.39
Negative
Market Momentum
-6.04
Positive
34.73
Neutral
14.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGEN, the sentiment is Negative. The current price of 111.94 is below the 20-day moving average (MA) of 138.06, below the 50-day MA of 150.41, and below the 200-day MA of 145.39, indicating a bearish trend. The MACD of -6.04 indicates Positive momentum. The RSI at 34.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGEN.
Repligen Risk Analysis
Repligen disclosed 41 risk factors in its most recent earnings report. Repligen reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Repligen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.14B | 45.58 | 9.32% | ― | 8.07% | 26.17% | |
69 Neutral | $5.19B | 40.48 | 9.40% | 0.30% | 1.72% | -21.26% | |
68 Neutral | $5.89B | 89.17 | 1.61% | 1.03% | 2.45% | -80.87% | |
64 Neutral | $8.23B | 116.65 | -25.23% | ― | 2.26% | -467.23% | |
58 Neutral | $6.29B | ― | -1.30% | ― | 0.33% | -171.08% | |
53 Neutral | $3.43B | ― | -5.76% | ― | 5.28% | -292.14% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
RGEN
Repligen
111.94
-62.11
-35.69%
ICUI
ICU Medical
139.32
36.33
35.28%
MASI
Masimo
144.40
1.27
0.89%
MMSI
Merit Medical Systems
92.50
19.42
26.57%
TFX
Teleflex
131.93
-83.37
-38.72%
STVN
Stevanato Group
19.02
-9.78
-33.96%
Repligen Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -25.73% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Repligen's earnings call highlighted strong growth in the CDMO and equipment segments, successful execution of strategic priorities, and positive outlook for 2025. However, challenges in China and the protein segment, along with restructuring charges, were notable lowlights. Despite these challenges, the positive aspects, including strong revenue growth and strategic achievements, outweigh the negatives.Highlights
Strong Fourth Quarter Revenue
Repligen achieved a fourth quarter revenue of $167.5 million and full year revenue of $634.4 million, despite a $3.5 million exchange rate headwind, with a 13% revenue growth ex-COVID in Q4 versus the previous year.
CDMO and Equipment Segment Growth
Significant improvement in the CDMO business with sales and orders up high double digits sequentially. Equipment sales and orders also up more than 30% sequentially, contributing to overall growth.
Filtration and Analytics Performance
Filtration revenue and orders were strong, with the filtration franchise growing 14% for the full year. Analytics had a record quarter, with an 11% sequential and 8% year-over-year sales increase.
Strategic Priorities Achieved
Repligen executed on strategic priorities, including increasing the high probability funnel by 16% and launching innovative products like the KrosFlow RS 10 RPM system and AVIPure double-stranded RNA resin.
2025 Financial Guidance
Repligen projects 2025 revenue growth of 8% to 12% on a reported basis, with potential foreign exchange headwinds, aiming for low double-digit growth excluding COVID.
Lowlights
Challenges in China and Protein Segment
China sales were a $25 million headwind in 2024, with China representing about 3% of full year revenue, down from 7% in 2023. The protein segment saw a 28% decline in revenue.
Impact of COVID-19 on Margins
Adjusted gross margin decreased by 1.8 percentage points due to COVID-19 sales last year, impacting the 2024 adjusted gross margin.
Restructuring and Inventory Charges
Repligen incurred approximately $45 million in nonrecurring restructuring and inventory-related charges, including noncash inventory write-offs from product rationalization.
Small Biotech Funding Environment
The funding environment for small biotech remains challenging, with total funding decreasing each quarter in 2024.
Company Guidance
During the Repligen Corporation's Fourth Quarter 2024 Earnings Conference Call, financial guidance for 2025 was provided. The company anticipates revenue growth between 8% to 12% on a reported basis, translating to $685 million to $710 million, with non-COVID revenue expected to increase by 10% to 14%. Adjusted gross margins are projected to be 51% to 52%, reflecting a 100 to 200 basis point expansion from 2024. Operating income margins are expected to improve to 14% to 15%, driven by volume leverage, pricing, and productivity, despite inflationary pressures. The adjusted EBITDA margin is forecasted to be 20% to 21%. The effective tax rate is anticipated to rise to 22% to 23%. Overall, the company is optimistic about achieving these targets due to strong order momentum, market recovery, and strategic priorities centered on innovation, margin expansion, and growth in Asia.Repligen Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Repligen Reports Strong Q3 2024 with Revenue Growth
Positive
Nov 12, 2024
Repligen Corporation reported a robust third quarter of 2024, with a 10% increase in revenue to $155 million year-over-year. The company experienced significant growth in the CDMO segment and equipment sales, each up by approximately 20%, and announced the acquisition of chromatography innovator Tantti Laboratory Inc. Repligen also opened a new Training and Innovation Center, enhancing its bioprocessing technology showcase. The adjusted net income reached $24 million, with a positive outlook for the upcoming year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.