For the third quarter, Repligen reported revenue of $155 million, reflecting a 10% year-on-year increase. The organization cited its success in new modalities, sales in its contract development and manufacturing organization (CDMO) equipment business.
The firm recorded an annual revenue increase in new modalities of 20%, while overall order intake exceeded sales by 4%.
Other factors that led to a strong performance included the inauguration of Repligen’s training and innovation center in Waltham, Massachusetts, as well as strategic mergers and acquisitions (M&As), which collectively contributed 3% to the reported growth.
“Quarter three was the highest revenue quarter ever for new modalities,” said the recently installed CEO of Repligen, Olivier Loeillot.
“Our orders were also at low double digits compared with quarter three of 2023. What is driving our success in this area is innovation,” he said. “Our strategy to develop and launch tailored solutions for the different new modalities is very successful, and with the expected rapid growth of this market, we are ideally positioned.”
To strengthen its new modalities segment, Repligen has grown through strategic M&As such as its acquisitions of Metenova and Tantti.
“The goal will be to launch some disruptive solutions into the new modality space as we move into 2025,” Loiellot added. “The work we are doing with new modalities combined with our mass collaboration position us well to move beyond the known headwinds here in 2024 and reestablish growth for our protein business.”
During the financial call, Loiellot reassured investors, underscoring M&As as “absolutely critical for growth.” He stated that “there is no reason to halt acquisitions,” noting that they provide a “highly active funnel of opportunities.”
In September 2023, expanding the firm’s fluid management portfolio, Repligen acquired Metenova for $170 million. At the time of acquisition, then CEO, Tony Hun said the addition of Metenova “strengthens our fluid management portfolio, with a product line that expands on the market success of our systems and fluid management assemblies.”
The bioprocess vendor acquired biomaterials tech firm Tantti in July 2024. Previously, the company acquired affinity purification ligand manufacturer Avitide, bolstering its protein business in 2021 for $150 million. Tantti will work with Avitide using its AVIPure adeno-associated virus (AAV) affinity resins to improve molecule selectivity and increase efficiencies to address downstream bottleneck challenges and the scalability concerns of manufacturers.
Furthermore, in August 2024, Reuters reported that the firm approached Maravai LifeSciences with an acquisition offer. Maravai is a life sciences company valued at $2.2 billion with more than 3,000 products in its portfolio and subsidiary brands that include TriLink Biotechnologies, Cygnus Technologies, Glen Research, and Alphazyme.
On the acquisitions Loiellot said, “The perfect example [is the] Tantti acquisition [combining with] Avitide. It's going to give us tons of upside on the resin market side. With the example of the Metenova acquisition where we're acquiring what is mostly a stainless-steel mixing business, enabling us to launch a state-of-the-art single use mixing technology which is the best in the industry.”
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