Repligen Corporation (NASDAQ: RGEN) today reported results for the second quarter of fiscal year 2012, ended September 30, 2011. Total revenue for the second quarter was $8,631,000 compared to total revenue of $7,307,000 for the second quarter of fiscal year 2011, an increase of $1,324,000 or 18%. Bioprocessing product revenue for the second quarter was $5,742,000, the highest level recorded to date, compared to $4,416,000 for the second quarter of fiscal year 2011, an increase of 30%. Sales benefited from a periodic order for a Protein A resin product in which Protein A is immobilized to beads which are ready for use by end-users. Royalty and research revenue for the second quarter, consisting primarily of royalty payments from Bristol-Myers Squibb on the U.S. sales of Orencia ®, was $2,889,000 compared to $2,891,000 for the second quarter of fiscal 2011.
Operating expenses for the second quarter were $8,079,000 compared to $6,780,000 for the second quarter of fiscal year 2011. This increase in operating expenses includes a $680,000 increase in selling, general and administrative expenses related to increased commercial activities supporting our bioprocessing business and pre-commercial activities for RG1068 and approximately $800,000 associated with cost of product revenue due to higher sales. Net income for the second quarter was $605,000 or $0.02 per diluted share, compared to net income for the second quarter of fiscal year 2011 of $623,000 or $0.02 per diluted share. Cash, cash equivalents and marketable securities as of September 30, 2011 were $58,274,000 compared to $61,503,000 as of March 31, 2011. This decrease in cash was due primarily to temporary changes in working capital due to the timing of customer payments that were received after September 30, 2011.
“We are very pleased to have achieved record bioprocessing product sales this quarter,” stated Walter C. Herlihy, President and Chief Executive Officer of Repligen Corporation. “Today we also announced the transformative acquisition of the business of Novozymes Biopharma Sweden which delivers on our goal of transitioning the company into a commercially focused organization and accelerates our path to near-term sustainable profitability.”