jefferies healthcare conference · $350-$400m resin & ligand market global leader in ligand...
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Jefferies Healthcare Conference
June 7, 2017
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Safe Harbor
This presentation contains forward looking statements which are made pursuant to the safe harbor provisions of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are subject to risks and uncertainties which may cause our plans to change or actual results to differ materially
from those anticipated. In particular, unforeseen events outside of our control may adversely impact future results. Additional
information concerning these factors is discussed in our reports filed with the Securities and Exchange Commission including
recent Form 8-Ks, our most recent Annual Report on Form 10K and our most recent Quarterly report on Form 10Q. The
forward looking statements in this presentation reflect management’s current views and may become obsolete as a result of
new information, future events or otherwise. We may not update such forward looking statements to reflect a change of
events or circumstances that occur after the date hereof, except as required by law. The industry and market data contained in
this presentation are based on management’s own estimates, independent publications, government publications, reports by
market research firms or other published independent sources, and, in each case, are believed by management to be
reasonable estimates. Although we believe these sources are reliable, we have not independently verified the information.
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Who
is Repligen?
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Leading Innovator in Bioprocessing
• Repligen is a innovator and manufacturer of high-value products
that enable efficiencies in the production of biologics
• The Repligen brand represents:
– Best-in-class technology to address current and future bioproduction needs
– A premium customer experience: service, quality and technical expertise
• Our growth drivers:
Biologics Market Strength
Commercial market, Clinical development
Organic Growth
Internal innovation,Commercial leverage
Strategic Acquisitions
Technology focus,Diversification
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Our Markets
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Biologics Market Strength makes Bioprocessing an Attractive Industry
• Market for antibody-based biologics is strong and growing
- Current market >$100 billion, >300 mAbs are in development
• Need for more flexible and efficient manufacturing driven by capacity constraints, cost pressures and market globalization
• We sell direct to biologic drug manufacturers: biopharmaceutical companies, contract manufacturing organizations
• “Sticky products” with high barriers to entry
- Risk and cost to change established biomanufacturing processes
• Our growth is largely independent of the clinical or commercial
success of any single biologic drug
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7.9 9.6 10.7 12.5 14.08.2 8.0 8.4
9.2 8.47.8 8.0 8.38.5 8.76.5
7.3 7.67.0 7.66.0
6.36.8
7.0 7.85.7
6.36.6
6.87.1
0.0
0.8
1.92.8
3.9
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2011 2012 2013 2014 2015
Other
Cimzia
Yervoy
Actemra
Perjeta
Orencia
Synagis
Simponi
Xolair
Erbitux
Tysabri
Stelara
Soliris
Prolia/Xgeva
Eylea
Herceptin
Avastin
Rituxan
Enbrel
Remicade
Humira
$71.8
$62.1
$54.4
$79.2
$89.0
Steady Growth in Commercial Market for Antibody-based Biologics
Glo
bal
Rev
enu
e, $
Bill
ion
s
Antibody-based therapeutics (mAbs) are the dominant form of biologic drug
“Mature” mAb sales continue to grow with new indications and drug combinations
*Includes fusion proteins that use a mAb manufacturing process, includes 3 biosimilar antibodiesChart source: Company 10-Ks, internal tracker
70 marketed mAbs* as of 05/02/17
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1
5
23
2 2
6
9
7
2
2
1
2
3
0
1
2
3
4
5
6
7
8
9
10
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2008 2009 2010 2011 2012 2013 2014 2015 2016
Biosimilars
Fusion Proteins
mAbs
Strong Pace of New mAb Approvals by FDA
• Robust pipeline to sustain strong mAb market growth
• 70 mAbs approved, >300 in development
• 7 mAbs approved by FDA in 2016, plus 3 biosimilar mAbapprovals
• 5 mAbs approved YTD 2017, plus 1 biosimilar mAb
• The large majority of mAbs are made using products manufactured by Repligen
Nu
mb
er o
f FD
A a
pp
rova
ls
Chart includes biosimilar approvals, excludes label expansions
20 in 6 years
24+3 in 3 years
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What Makes
Repligen
Unique?
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What Makes Repligen Unique?
Leader in Protein A
Most of the world’s monoclonal antibodies (mAbs) are purified on Protein A ligands manufactured by
Repligen
Expanding global presence4 manufacturing sites, ~240 employees
Bioprocessing expertise and focus20 of the top biopharmaceutical companies use Repligen products
Balanced, diversified portfolio of OEM and direct products
Technology & Market Leadership
Revenue: $104.5M in 2016
“Customer first”Custom solutions
OPUS® Pre-
Packed Columns
XCell™ & Sius™
Filtration
Protein A
Ligands
LONG® Cell
Culture supplement
Proteins
Chromatography
Filtration
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Repligen
Growth &
Execution
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Achieving Revenue Growth & Diversification Goals
Expanding Product Revenue and Gross Profit Margin
2012$42M Sales
40% gross margin
2016$104.5M Sales54.9% gross margin
2020 Goal$200-$250M Sales
Proteins Proteins
Chromatography Chromatography
Filtration
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Execution on 2016 Goals
• Reported annual revenue of $104.5M, up 25% year-over-year
• Renewed key long-term supply agreements for Protein A ligands
• Raised $111M through convertible bond offering in May
• Introduced 2 new products (su XCell™ ATF, OPUS R)
• Strengthened brand leadership in bioprocessing
• 2 strategic acquisitions - Atoll GmBH (April), TangenX (December)
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2 Key Acquisitions in 2016Atoll GmBH (April), TangenX Technology (December)
Both Atoll and TangenX meet all acquisition criteria
Technology leadership in bioprocessing
Strengthens, expands Repligen portfolio
Underinvested in commercial; opportunity to leverage Repligen organization
Strong revenue growth, margins in line with Repligen
Expected to be EPS accretive in 2017
Paid 5x-6x forward 12-month revenue
Atoll Process development scale pre-packed columns expand OPUS® PPC business(downstream)
TangenXSius™ single-use TFF cartridges complement XCell™ ATF upstream, add adjacent product to OPUS® PPC (downstream)
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Technology Innovation Drives Future GrowthKey R&D Programs 2016
Launched single-use
format of XCell™ ATF
cell retention system
- Complements stainless steel line
- Improves ease of use
- Equivalent high performance
Introduced
OPUS® R
- Enables resin recovery (cost savings)
- Continues to differentiate OPUS® in PPC market
Acquisition Driven Internal R&D
Brand leadership in cell retention (upstream) and pre-packed column (downstream) space
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A Strong Start to 2017
Q1 2017
• Reported Q1 revenue of $30.6M, up 24% year-over-year (cc)
• Chromatography and Filtration drove Q1 growth
• Proteins forecasts are encouraging
• Increased net income and EPS guidance
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Addressable Markets
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Cell retention
Filtration
XCell™ ATF System:$125-$150M market,share ~15%
Chromatography
OPUS® pre-packed columns:~$165M clinical market, ~35% penetrated, share >30%
Protein A resins, ELISA Kits
Double-digit growth 2017First full year offering OPUS PDShift to more drop-ship resin
Cell culture
Growth Factors
LONG®R3 IGF-1: ~$75M-$80M market, share 15%-20%, displacing insulin
2017 Growth Est.Products Addressable Market
$350-$400M resin & ligand market
Global leader in ligand manufacture
Smaller player in Protein A resins
Protein A
Mid-single digit growth 2017New mAb approvals, biosimilars
3 Businessesin a $900M-$1B Addressable Market
Protein concentration
FiltrationSius™ TFF membranes & hardware
~$200M market, share <5%
Double-digit growth 2017CMO > large biopharmaLeverage commercial forceFI
LTR
ATIO
NP
RO
TEIN
SC
HR
OM
A
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Financial
Performance &
Outlook
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Line extensions+24%-29% 201510%-15% L-T
Same customer base, call pointsUp- to-downstream spaceImprovement opportunities
($s in MILLIONS except EPS) 2015* 2016*2017
GuidanceLong-term goal
Product Revenue $83.5 $104.5 $121-$126 $200-$250 by 2020
Product Revenue Growth 38% 25% 16%-21% 10%-15% organic CAGR
GAAP Product Gross Margin 57.8% 54.9% 55%-56%
Adjusted Product Gross Margin - - 55.5%-56.5% 60% gross margin
Product Gross Profit $48.3 $57.4 no guidance
Adjusted Product Gross Profit - - no guidance
GAAP Income from Operations $13.8 $16.0 $24-$26
Adjusted Income from Operations $17.8 $21.4 $27-$29 >25% op margin
GAAP Net Income $9.3 $11.7 $11.5-$13.5
Adjusted Net Income $13.4 $15.1 $18.5-$20.5
GAAP Earnings Per Share (EPS) diluted $0.28 $0.34 $0.36-$0.41
Adjusted EPS diluted $0.40 $0.44 $0.55-$0.60
Financial Snapshot
*Intangible amortization (IA) expense in 2015, 2016 is adjusted out in non-GAAP reporting as of Q1 2017 earnings report. Above adjusts out IA in 2017 guidance ONLY. IA expected to be $3.0M in 2017 and was $2.1M in 2016 ($0.6M COGS, $1.6M SG&A)
34.4M shares out (fully diluted), cash $142M at March 31, 2017 2017 Guidance is as of May 4, 2017 earnings call
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• Continue expansion of commercial organization
• Accelerate global market adoption of direct products
• Drive market success of Atoll and TangenX products
• Strengthen core businesses through strategic acquisitions and/or partnerships
• Continue to execute on goal to build a $200-$250 million global company by 2020
Well Positioned for Growth in 2017
