Repligen Corporation

Good morning and welcome to Repligen's third quarter of 2026 earnings conference call. My name is Jillian and I will be your operator. Following management's prepared remarks, we will open the call for questions. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. to provide an opportunity for as many participants as possible. We ask that callers limit themselves to one question. I will now turn the call over to Jacob Johnson, Vice President of Investor Relations for Repligen. Jacob, please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Repligen's 2026 Third Quarter Earnings Call. Joining me today are President and Chief Executive Officer Olivier Loeillot, and Chief Financial Officer Jason Garland. Earlier this morning, we issued our earnings release and supplemental presentation, which are available on the investor relations section of our website. Before we begin, please note that today's discussion will include forward-looking statements and certain non-GAAP financial measures. Actual results may differ materially from those expressed or implied by these statements due to risk and uncertainties described in today's earnings release and our SEC filings. Reconciliations of non-GAAP to GAAP measures are included in today's earnings release and supplemental materials. These adjusted financial measures should not be viewed as an alternative to GAAP measures, but are intended to best reflect the performance of our ongoing operations. With that, I'll turn the call over to Olivier.

Thank you, Jacob. Good morning, everyone, and welcome to our 2026 third quarter call. We had a record quarter with 209 million of revenue. This is a significant milestone as we surpass our prior peak in the second quarter of 2022. We believe this is another proof point that the industry is poised for its next phase of growth. It also highlights the benefits of our diversified portfolio as this was driven in part by proteins and chromatography. In addition, We were delighted to close the acquisition of BioLife earlier this month. This combination further expands our capabilities in the rapidly growing cell therapy and market and strengthens our long-term growth platform. We will discuss our initial observations and integration efforts in a moment. But first, we delivered 209 million of revenue in the third quarter, which represented 12.5% organic growth while expanding adjusted operating margins by 170 basis points compared to the prior year. This was an excellent result as we were lapping a very strong quarter in the prior year. Our ability to outpace market growth very significantly this quarter is a testament to our team's strong execution in a market that is still recovering. Following these strong results and incorporating the BioLife acquisition were increasing our 2026 guidance. Jason will provide more details. Our updated 2026 guidance includes an expected 24 million revenue contribution from BioLife for the period following deal close in our fourth quarter. This assumes BioLife annual 2026 revenue on a pro forma basis will be approximately 114 million US dollar above the midpoint of BioLife most recent guidance. The business is performing well and we are very confident about delivering our deal model for 2027 and beyond. With the recent acquisition and ongoing integration, we are taking a prudent approach to our initial assumptions for the remainder of 2026. We are narrowing our organic growth outlook to 12 to 13%. At the midpoints, this represents a 50 basis point increase and assume fourth quarter growth is within the full year range. This also means we will deliver again on our full year commitments and outpacing markets significantly. As I reflect on our end markets, we remain encouraged by the continued improvement in the bioprocessing industry. Importantly, our funnel and order activity continue to strengthen. This is particularly true for capital equipment. Capital equipment orders increase mid-teens year over year and was the highest orders quarter in five years while revenue declined. The tap has not opened as quickly as we would have expected it this year. However, we continue to see encouraging signs in our funnel and order book. We are building a backlog for 2027 and we'll enter next year in a better position than we did in 2026. As a result, we remain encouraged that we're seeing a gradual improvement in capital equipment demand with a notable pickup in orders for our system. We're actively executing initiatives that will strengthen our equipment business and prepare us for the next phase of growth. This includes continued investment in innovation as well as strategic efforts designed to deepen customer engagement and support large-scale manufacturing expansion projects. One example is our integrated solution team, which is focused on addressing customer capacity expansion, such as onshoring. Consumable demand remained outstanding with 20% growth in the quarter, while services was even stronger with greater than 20% growth. Our services team continued to execute extremely well. Year to date, our services team has increased the number of systems under contract by nearly 40% despite a muted capital equipment revenue environment. In addition to the incremental service revenue, this allows us to be closer to our customers and provide further insight into their needs. Services represented 7% of our revenue in the quarter, and we expect it to become a larger mix of our business going forward. In short, our base business remains strong as highlighted by our 12.5% organic growth in the third quarter. Our funnel and orders suggest a continued improvement in the end market. In addition, we continue to execute our innovation strategy to drive above market growth. Moving to our performance by end market, biopharma revenue drove growth while CDMOs declined on a difficult comparison. Year to date, We have seen similar trends for both customer bases. Biopharma growth was strong in all regions, as Europe returned to growth on a more favorable comparison, while year-to-date, biopharma growth has been driven by strength in North America and Asia Pacific. Emerging biotech grew mid-single digits on a difficult comparison from last year. Demand trends remain healthy, as year-to-date emerging biotech revenue has increased in the high teens. New modalities were relatively flat, but grew high single digits, including the impact of a certain gene therapy platform. This was led by nearly 30% growth in cell therapy. In addition, gene therapy demand grew on an absolute basis and north of 25%, excluding that gene therapy headwind. We continue to believe new modalities will be a credit to our medium term outlook. and we are excited to expand our capabilities with the addition of BioLife. Moving to our strategy update, I wanted to share some initial observations on our first few weeks of ownership of BioLife. I will leave you with the most important takeaway first. We are even more excited about the strategic rationale of bringing our organizations together and the value we will create for patients, customers and shareholders. Jason and I were fortunate to spend time with our team at BioLife Sites and I recently joined the BioLife team again in both Basel and Indianapolis to celebrate the closing. We walked away impressed by our shared culture of innovation and customer centricity. We are thrilled to expand our offerings for the cell therapy market. Customer feedback has been very encouraging and we have received a number of positive responses after the acquisition. After months of thoughtful planning, our combined teams are now focused on executing the integration plan and realizing the opportunities we identified ahead of closing. In fact, our team are hosting an integration workshop in Walsam as we speak. We have already completed actions to deliver a sizeable portion of our operating expense synergies. This includes capturing public company and certain leadership costs, which represent more than half of our anticipated year one synergies. As it relates to costs of goods sold, our team is already hard at work evaluating potential options to improve cryo store scrap rates. Finally, our commercial team are now collaborating to achieve revenue synergies. We recently cross-trained both commercial teams. We continue to believe our offerings will benefit from BioLife's trusted customer relationship. In addition, our Asia-Pacific team has begun to explore the opportunities to increase awareness of CryoStore in the region, particularly in China. As we look ahead to 2027, we remain focused on outpacing market growth. Assuming the market is growing high single digits and with the acquisition of BioLife, were positioned to grow our reported top line at least 25% next year, absent a material change in foreign exchange rates. This will result in our revenue exceeding $1 billion, which represents another significant milestone for our company. Additionally, I wanted to spend some time on our Asia-Pacific strategy. As Jason will discuss in more detail, we had another very strong quarter in China with greater than 40% growth. In China, we're advancing several strategic initiatives to strengthen our position in the market, including ongoing technology transfer with our OEM partner as we work to recapture share. Notably, China recently published its latest five years biotech plan. The government expects the industry to grow at over 20% CAGR through 2030. This speaks to the growing activity in this country, and we remain convinced China will be the fastest growing biopharmaceutical market in coming years. Beyond China, there are significant growth opportunities in the broader Asia-Pacific region. Last week, we opened a new Refugee Training and Innovation Center in South Korea. This underscores our commitment to a strategically important market that has become one of the world's leading hubs for biologics and CDMO manufacturing. Before I turn the call over to Jason, I provide some more detail on our franchise level performance. I will note that all references to our 2026 expectations are on a reported basis. Starting with filtration, as expected, The previously disclosed ETF headwind was most pronounced in the third quarter and resulted in an 11% decline in filtration revenues. I'll note this includes a two-point headwind from our PolyMEN divestiture and foreign currency. So the decline was slightly greater than we expected. This was largely timing-related, with most of our systems order planned for delivery in 2027 per customer's request. were encouraged by the hardware backlog we are building for next year. We now expect filtration to be flat to slightly down for the year. This includes the inorganic impact from the sale of polymers. Turning to chromatography, revenue grew over 50%, with some help from a favorable comparison in the prior year. This was again driven by growth in opus columns with continuous growth from CDMO and biopharma customers. In particular, we continue to see significant traction with large-scale columns. We now expect chromatographic growth of at least 30% for the full year. We had another great quarter in proteins with more than 40% growth, again driven by strength across our portfolio, including positive traction in ligands, growth factors, and our custom and catalog resins. were also pleased to share we recently extended our supply agreement with Ecolab and are excited about our continued partnership. Our protein strategy is working marvelously and we continue to expect meeting growth for the full year. Our analytics franchise had another record quarter with 20% growth, a strong outcome given we face our most difficult prior comparisons. The growth was driven by a robust demand in consumables and services, while capital equipment remained healthy. Our downstream protein concentration analytics offerings were recently recognized in the USP Chapter 507 standards. These are widely accepted quality standards used by biopharma manufacturers and regulators. This is a significant milestone that provides external validation of the technology and strengthens our credibility with biopharma customers. From a commercial standpoint, this recognition should help us reduce barriers to adoption, support broader development of Solo VP Plus across products and sites, and strengthen the longer-term opportunity for Flow VPX as customers adopt the technology more broadly. In addition, we have seen traction recently with our PAT-enabled systems, which further expands the FlowVPX opportunity. As the industry continues its journey towards AI and digitization, we have engaged with several key customers who are sharing their AI-enabled process development and manufacturing strategies. This highlights the growing importance of our advanced PAT and digital twin capabilities. Given momentum in downstream demand and a growing contribution from our upstream analytics, we now expect analytics growth of at least 30%. Before I hand the call over to Jason, I wanted to reiterate how proud we are of our Q3 results as we outpace industry growth again and how excited we are about the growth opportunities in front of us. This is especially true as we add biolife cell therapy capabilities to our portfolio. The progress we are making in delivering our strategy is increasingly reflected in our results. This is a testament to our team's strong execution and hard work. We have several initiatives underway to drive future growth, including our Integrated Solution Team and Asia Pacific Strategy. Combined with our Fit for Growth Investment and Transformation Office, these efforts are helping us build the capabilities and discipline needed to deliver profitable growth. Now, I turn the call over to Jason for the financial highlights.