Maravai LifeSciences Holdings, Inc.

Good day, and thank you for standing by. Welcome to Maraville Life Sciences' fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. Please be advised that today's conference is being recorded. And if you require any further assistance, please press star 0. I would now like to hand the conference over to Ms. Deborah Hart, Head of Investor Relations. Ma'am, please go ahead.

Thank you, Rachel. Good afternoon, everyone. Thanks for joining us on our fourth quarter and year-end 2021 earnings call. Many of you tuned in for our Investor R&D Day last month, so we won't be repeating that information today. For any of you who missed it, the materials, including video clips and replays, are available on the IR site. Our press release and the slides that accompany today's call are posted on our website and are available at investors.maravai.com under financial information, quarterly results. On today's call, we'll cover our financial results and business highlights and we'll provide updated financial guidance for 2022. As you can see on slide two, Carl will first provide you with a business update and Kevin will review our financial results and guidance. We will then open the call for questions following the prepared remarks. On slide three, we remind you the forward-looking statements that we make during this call, including those regarding our business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning these risk factors is included in the press release we issued earlier today. as well as those that are more fully described in our various filings with the SEC. Today's comments reflect our current views, which could change as a result of new information, future events, or other factors, and the company does not obligate or commit itself to update these forward-looking statements, except as required by law. During this call, we will be using non-GAAP measurements of certain of our results and in providing guidance. Reconciliations of GAAP to non-GAAP financial measures are included in the press release, which is posted to Marvi's website and via the EDGAR website. The metrics we will be discussing in today's call include net income, adjusted EBITDA, income tax expense, and adjusted earnings per share. These adjusted financial measures should not be viewed as an alternative to GAAP. that are intended to better enable investors to benchmark our current results against historical performance and the performance of peers. Now, I'll turn the call over to Carl.

Well, thank you, Deb, and good afternoon, everyone. We appreciate having you join us for our call today. Let's start with our fourth quarter results on slide five. Maravai had a very strong fourth quarter, in fact, the largest quarter in our history, even without revenue contribution from our former protein detection business, which we divested in September of last year. Today, we reported $228.4 million in revenue for the quarter, growing 132% compared to the prior year and up 12% sequentially over the third quarter. Our adjusted EBITDA of $162.7 million grew 153% over the prior year. Our top-line performance and outstanding adjusted EBITDA resulted in adjusted EPS of 45 cents per share. 2021 was an incredible year for the entire business, as you can see on slide six. Full-year revenue was 799.2 million dollars. Net income was $469.3 million, with adjusted EBITDA margins at 73%. And most importantly, our 2021 base business revenue, excluding the clean cap revenue from COVID-19 vaccines, grew 33% for the whole year. Our base business continues to deliver well above market growth across the board, reflecting accelerated demand for our products, on top of well-established COVID vaccine tailwinds. We see momentum continuing to build across our global customer base as mRNA research and cell and gene therapy development accelerates on what seems like a daily basis. More on that in just a moment. Turning to slide seven, growth in nucleic acid production in particular remains very robust. Our nucleic acid production business had record revenue of $212.5 million in Q4, up 173% year-over-year and up 16% sequentially. For the full year, nucleic acid production revenue was $711.9 million, growing 245% over 2020. Demand for CleanCap mRNA continues to accelerate in all areas, CleanCap reagents themselves, GMP manufacturing services utilize CleanCap, and custom mRNA constructs. We have a unique opportunity to drive the inclusion of CleanCap across our growing mRNA customer base while providing critical GMP raw materials and our newest technology to improve in vitro transcription reactions. These programs will continue to bring value to our customers and help to improve the quality of manufactured mRNA for years to come. To further illustrate our increasingly prominent market position, let me share with you the traction we are seeing from customers wanting to enter into CleanCap supply agreements. On slide eight, you'll see that at the start of last year, we had six executed supply agreements for CleanCap in place. That's up by one from our earlier estimates and another handful of agreements under discussion. When we held our second quarter earnings call back in August, we had 13 supply agreements signed, 12 more inactive late-stage negotiations, and 25 more with term sheets under review. Today, we have 21 supply agreements signed, 12 more inactive late-stage negotiations, and 27 more with term sheets under review, an actual pipeline increase of 176% in a one-year period. Many of these new relationships are expected to be more expansive and more involved than some of the straightforward supply arrangements that we might have seen in the past. We believe that this underscores the incredible enthusiasm that exists for mRNA generally, and clean caps specifically. Even more encouraging is the fact that this global customer population spans the spectrum from the largest pharma to innovative biotechs to new and potentially transformative nucleic acid manufacturing platforms. From our perspective, mRNA and CleanCap are clearly here to stay in a durable and meaningful way, and Maravai is right in the thick of the action with a solid piece of the market for both infectious disease vaccines and mRNA therapeutics. Given this growth and the general enthusiasm for the markets we serve, we are also committed to increasing our investment in mRNA innovation as we scale our R&D operations, facilities, and quality systems and partner more closely with our customers. Turning now to slide nine. We acquired MyChem on January 27th, and the integration of the team is going extremely well. The addition of MyChem extends our capabilities in the manufacturing of critical raw materials that are used in cell and gene therapy, molecular diagnostics, and mRNA vaccine manufacturing. MyChem specializes in ultra-pure, chemically synthesized nucleotides and has been a critical supplier of key raw materials for several tri-linked products over the past few years. I'm very pleased that they are now allowing us to strengthen our supply chain for chemistry products. MyChem's ability to address life sciences markets broadly, inclusive of diagnostics and therapeutics, provides nice synergies across common customer segments. In addition to this type of inorganic investment, we are also making organic investments in our people, laboratory facilities, and program management resources, while adding new external scientific collaborations. We also remain active in pursuing additional inorganic growth opportunities and hope to be able to announce further acquisitions in 2022. We are committed to expanding our reach as a key raw material supplier, and we are actively working to expand our international footprint so that we may improve our ability to serve our global customer base directly. Now, turning to slide 10 in our biologics safety testing business. As you know, our products and services in BST support high-growth markets in cell and gene therapy, vaccines, and biologics drug manufacturing. Here, we set the global gold standard in household protein and process-related impurity analytics along with offering innovative viral clearance prediction solutions that help our customers ensure the safety of their biopharmaceutical products. Our fourth quarter revenue of $15.9 million in BST was up nearly 13% from last year. For the full year, our biologic safety testing revenue of $68.4 million grew 25% over 2020 levels. This notably strong revenue growth is driven by three main factors. First, continued high end-user demand for our products through both direct and distributed channels as a result of rapidly expanding new vaccine and adeno-associated virus-based gene therapy programs and their attendant analytical needs. Second, strong sales across the full breadth of our product line used routinely to and a number of already commercialized cell and gene therapies, immuno-oncology vaccines, and innovative biologics and biosimilars. And finally, the continuously expanding biopharma product development pipeline. We saw strong demand for all categories of kits during the quarter, from generic post-cell protein assays to other ELISA impurity detection kits to mass spectrometry-based analytical services. that also promote the use of our HCP kits. Additionally, a number of our customers entered into agreements with us to develop custom host cell protein assays to support their proprietary biologics programs. While our BST business is often overlooked by some in the investment community, simply due to the size and scale of the nucleic acid production business, BST remains key priority and a very attractive long-term growth opportunity from Marvi. We plan to continuously innovate and to scale our offerings to ensure superior technical support, to offer the highest quality services and products, and the most comprehensive catalog of products to meet our customers' needs. Now, moving on to slide 11. You saw from our press release that we are increasing our 2022 revenue guidance to $920 million to $960 million, which represents total revenue growth over 2021 of 18% at the midpoint. We have a strong internal outlook for the year, and we believe that we're in a great position to deliver value to our shareholders this year and beyond. I'll now ask Kevin to cover our fourth quarter and full year performance, along with more details on our updated guidance and our long-term model assumptions. Kevin?