Repligen Corp Wells Fargo 21st Annual Healthcare Conference

Yeah, thanks for the question, Evan. Obviously very happy about how quarter 2 played out for us. You're right, we grew 13% organic. In fact, the real number was 14%, because we lost a percent on tariff refund. Really a great quarter, which has enabled us to increase our guidance for the full year to 10.5%-13.5%, midpoint at 12% growth, which is exactly what we grew in the first half. Our growth in H1 was exactly 12%. So we felt like this is setting us up for a good year of 2026. You mentioned about performance of our franchises, particularly great performance of both analytic and protein as well, which has helped us. I think protein grew more than 50%, analytics more than 30%, so this has helped us balancing quite a bit on the lower growth we've seen on filtration.

Great performance on margin, and I'm sure you're going to have question for Jason on that later on, so I'll pass on it. What was very encouraging for us also was to see a specific rebound of a couple of market segments that we're tracking, one being emerging biotech, and the other one being new modalities. As you all know, there have been a couple of tough years on new modalities. So to see a rebounding new modality market segment for us was really a great signal. Then finally, obviously, very happy with the progress we're making on our strategy. The pending acquisition of BioLife Solutions obviously is a big milestone for us, and we're very excited about what comes around the corner here.

Listen, you are right. We have been piling two headwinds this year. One that we knew already a year ago, which was the gene therapy program that has costed us about 2 points of growth in 2026. Then the other one, which was totally unexpected, that took place beginning of this year, which we informed Wall Street about, which is couple of ATF customer, one having management of its inventories this year, the other one having a delay of implementation of its manufacturing site. This has indeed added a bit of unexpected pressure to our 2026 numbers. We are so glad that we are still managing to deliver the growth we do because it is a testimony indeed we have that very broad portfolio of products that we have been talking about constantly over the last several years. So you are also right, Evan, I am not talking about 2027 today.

You know what we have been always saying, we are aiming to outpace market growth by 5 points, and we have such a diversified portfolio of products that if for whatever reason we get bad news on one side, we are trying to, and we are managing to compensate on the other side. So that is kind of the story for 2027 at this stage, yeah.

Yeah, no, mRNA is a modality we like from a lot of angle. First of all, think about it, during COVID, billions of people around the world have been taking some mRNA vaccines, and this is what I like to call sometimes the largest clinical trial that has ever happened in the history of the world somehow where indeed billions of people have been vaccinated. So to see that piece of news coming from the Moderna INT project combined with Merck project, it is very exciting for the entire industry because for bioprocessing company, mRNA is presenting a lot of opportunities. If you look at products as you ask, it can start with any type of resins that are being used in 2 steps.

One for the first step, which is the DNA plasmid manufacturing, and the other one, which is for the final purification of the mRNA product. The first catalog product we launch is enabling customers to get rid of the biggest impurity you are getting in an mRNA process, which is a double-stranded RNA. That is the resin piece. Then if you have resin, you have to pack resins. Very often those mRNA customers, they have to pack hundreds of columns because it is going into smaller type of population batches and so on. They do not want very often to pack these columns themselves, so they use column packing, so that is great opportunity for us.

Then you add the filters, then you add the fluid management because as far as fluid management is concerned, the needs are very different than the needs you have on some other businesses like monoclonal antibody, which are mostly dealing with very large processes. mRNA processes are much smaller and so on. Then finally, PAT technology. Of course, there are a lot of opportunities for suppliers like ours across the board in term of the portfolio here.

Yeah, no, sure. First of all, we did a lot of homework, Evan. I can tell you we spent six, seven months in total to really make sure we were making the right decision here, doing multiple market studies about cell therapy in general, understanding what the trend were, trying to overcome potential risks, like the potential emergence of in vivo therapies and so on. We did that homework first, and then we realized, well, first of all, it is a huge new modality for our customers. 25%, so one product out of four in the overall funnel pipeline of pharmaceutical, biopharmaceutical drug today is a cell therapy drug. Then you add today it is mostly CAR-Ts that are commercial. You start to see the emergence of allogeneic drugs and later on iPSCs as well. We realize this is a very fast-growing market for the next decade for sure.

Secondly, looking at that specific asset, BioLife has done an amazing job to really differentiate itself. As you know, we like to say 80% of our portfolio is differentiated. Their portfolio is very differentiated as well, so the fit is also very good here. On biopreservation media, they are already designing 18 commercial drugs. They are designing in more than 80% of any phase II and phase III drug as well. So we know there is a lot of tailwind that is going to come in the next few years from the next FDA approval across the board here. Finally, two things. First of all, there is a little joke. We are going to hit the $1 billion number next year, which for a company like Repligen, it is a big milestone for us. We have been growing very nicely, as you all know.

I do not think there are a lot of people who would have bet that Repligen would be a $1 billion by 2027 several years ago or so, and that is a big milestone for us. One of the reason why is because we have got that very diversified portfolio of product, but also very diversified end market approach. We talked a lot about mRNA. We talked a lot about gene therapy in the past. We had a very small play in cell therapy. Now, with this acquisition, we are going to balance our play into new modalities much more evenly between cell therapy, mRNA, and gene therapy as well. Also across the board, really exciting for us. As we mentioned, it is accretive across the board. I tell you, I have looked at a lot of acquisition in my career.