Maravai LifeSciences Holdings, Inc.

Good afternoon everyone and welcome to the Mara Vi Life Sciences second quarter 2025 earnings results conference call. At this time all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone. Also today's call is being recorded and if you should need any operator assistance during the call today please press star 0 at any time. Now, at this time, I'd like to turn things over to Deb Hart, Senior Director, Investor Relations. Please go ahead, ma'am.

Good afternoon, everyone. Thanks for joining us on our second quarter 2025 earnings call. The press release and slides accompanying today's call are posted on our website and available at investors.maravai.com. During today's call, management will make forward-looking statements and refer to GAAP and non-GAAP financial measures. it is possible that actual results could differ from management's expectations. We refer you to slide three for more detail on forward-looking statements and our use of non-GAAP financial measures. The press release provides reconciliations to the most directly comparable GAAP measures, and we also post reconciling schedules to the IR website. Please also refer to MARAVI's SEC filings for additional information on the risks and uncertainties that may impact our operating results performance, and financial condition. Now, I'll turn the call over to our Chief Executive Officer, Bernd Brust.

Good afternoon, and thank you all for joining. I'm Bernd Brust, and I'm very pleased to be hosting my first earnings call as Marvi's CEO. I'd like to begin with my reasons for accepting the role as CEO, and in this context, frame for investors the incredible opportunities I see ahead for the company. Over the past 30 years, I've been a leader of many successful life sciences companies that have experienced both growth and transformation. My approach centers around alignment, strategic clarity with operational discipline to drive meaningful, measurable results. I've had the rare opportunity to work directly on a long list of breakthrough technologies in the life sciences sector, including in multiple CEO roles. Most recently, I was the executive chairman and prior to that the CEO of Antillia Scientific, a global provider of tools and solutions for diagnostic testing, sample preparation, biological monitoring, and environmental analysis. I've known Miravai as a technology leader that delivers meaningful innovation to market. When I was approached about the CEO role, I took a close look, and what stood out to me was how rare it is to find a company in the life sciences tool space with this combination of proprietary technologies, trusted brands, and untapped market opportunity, and one I was excited to help shape. I came into this role with a clear understanding that realizing Marivai's full potential would require change. There's important work ahead to position the company for sustainable, profitable growth. I've spent my first 60 days understanding where we stand and where we can go next. We completed a top to bottom review of our strategy, structure, and financial plans to sharpen our focus and reallocate resources toward initiatives with the greatest potential for impact and return. Through direct engagement with global customers and competitive benchmarking, we gained a clear view of where we lead and where we must sharpen our focus to win. I spent time with team members across the organization and gained a clear view of what's working and where we face challenges. I've been encouraged by the expertise and dedication of our people, but to move forward, we need to build a stronger culture of accountability and help our teams execute with focus and purpose. From these learnings, we've established a three-part plan to put the business on the strongest footing to deliver on Maravai's full potential. Let's turn to slide six. First, we are making a commitment to improve operational excellence and execution. On Friday, we initiated a restructuring plan designed to significantly reduce our operating costs. Through reductions in headcount and non-headcount related expenses across all functions in our organization, we expect to lower our annualized expenses by more than $50 million. These reductions will be phased in and should be complete over the next 12 months. with the majority of the savings actioned on in the next two quarters. As part of the restructuring, we're evolving from a more complex structure with higher overhead to a streamlined functional operating model. This includes consolidating executive roles and removing layers to accelerate decision making, reduce duplication, and foster greater accountability and cross-functional collaboration. One key change is to provide centralized oversight for TriLink R&D projects to ensure ongoing innovations are providing impactful value to our customers and the largest returns for Maravai. These decisions are never easy, especially when they affect valued colleagues. But the challenges Maravai has faced post-pandemic call for urgency and clarity in how we move forward. We're approaching this process with care and respect, focused on minimizing disruption to our customers and positioning the company for long-term profitability. I'm confident these organizational changes will strengthen the business. Raj will provide more details on these changes later in the call. Second, we are focused on strategic levers for long-term value creation, starting with revenue diversification and growth across each of our businesses. For biologic safety testing, or BST, this includes maintaining and building on our market leadership. We are investing in the development and launch of new analytical products tailored to the evolving needs of our biologics and cell and gene therapy customers. This investment not only supports our existing base of global biopharma customers, but also opens the doors to emerging players who require scalable and compliant testing solutions early in development through commercialization. We believe this business represents a highly valuable standalone platform. It has high penetration across monoclonal antibody-based products, recombinant vaccines, and all FDA and EMA-approved CAR-T cell and gene therapies. With high contribution margins and a foundation of recurring demand, sickness is not only a core strength, it's a strategic asset. We recognize the standalone value this segment represents, and we're committed to ensuring that this value is more clearly appreciated by the market. While the nucleic acid production or NAP business navigates a period of macro and political headwinds, our BSD segment provides visibility, diversification, margin stability, and capital allocation flexibility. Within the NAP business, we are building on our GNP consumables capabilities. We see this as an area where we hold a distinct advantage. Our large-scale GMP capabilities are unmatched, and we are actively expanding our product portfolio to support future mRNA applications, particularly in therapeutic categories such as oncology, autoimmune conditions, and rare diseases. This is a fast-evolving market, and our ability to deliver reliable, high-quality, and scalable GMP products positions us as a key partner to our pharma, biotech, and CDMO customers. For our CDMO business, we continue to make strong progress supporting customers from preclinical through commercialization. We're not just a supplier, but an extension of our customers' teams, working side by side with them every day. This trust and partnership leads to stickier relationships, helping us win follow-on contracts as our customers' program advance. It's a key driver of both near-term revenue and long-term customer relationships, increasing the likelihood that we'll support programs from early research through commercial launch. And for our research customers, we are broadening access to our technologies through innovation and expanding our consumables portfolio. We are also investing in our e-commerce infrastructure and AI capabilities to provide a more streamlined commercial experience for our research customers. This month, we are launching a new version of the mRNA Builder, our online ordering tool for custom mRNA that allows customers to design, order, and build RNA using our products. This tool is the first of several planned upgrades to our e-commerce platform. These initiatives are central to our future growth and position us well for long-term success. With these actions in place, we will get the benefit of the margin flow through to return to sustainable, positive adjusted EBITDA and free cash flow by the second half of 2026. As a CEO, I have to make the tough calls that are in the long-term best interest for Maravai and our shareholders. We were structured for a much larger company than we are today. And these actions will align the business to our current reality and allow us to grow revenue and profitability from here. We have great science and technology, and I'm optimistic that we are going to have a great future. While there is more work ahead and we continue our comprehensive business review and complete our budgeting process, I'm confident in our team's ability to execute and be energized by the opportunity to build a stronger, more focused company for our customers, employees, and shareholders. We have a clear plan and are moving quickly to return Marvi to growth and profitability. Now, I'd like to introduce Raj Atarpota, our new CFO, who joined Maravai on June 30th. As you can see on slide seven, Raj brings over three decades of financial leadership experience across both public and private organizations as they went through significant transformation and growth. I have personally worked with Raj at General Electric, Life Technologies, and Antillia Scientific, and I value his leadership and financial stewardship as we continue building Marwai into a scalable, profitable, and free cash flow positive business. I will now hand the call over to Raj.