- Product Revenue Grows 12% for the Quarter on Record Bioprocessing Sales - - Net Income Grows 189% to $4.5 Million - - Earnings Conference Call and Webcast Today at 9:00 a.m. EDT - WALTHAM, Mass., Aug. 1, 2013 (GLOBE NEWSWIRE) -- Repligen Corporation (Nasdaq:RGEN) today reported financial results for the second quarter ended June 30, 2013. Below are the Company's financial and business highlights for the second quarter of 2013, financial guidance for the year and dial-in numbers for today's conference call. Second Quarter 2013 Financial Highlights
- Bioprocessing product revenue for the second quarter of 2013 reached a record $13.0 million, an increase of 12% over the second quarter of 2012.
- Total revenue for the second quarter of 2013 was $17.5 million, an increase of 13% over the second quarter of 2012.
- Bioprocessing product gross profit margin was 59% for the second quarter of 2013, compared with 37% during the second quarter of 2012.
- Net income increased to $4.5 million for the second quarter of 2013 compared to $1.6 million for the second quarter of 2012; earnings per diluted share were $0.14 for the second quarter of 2013 compared to $0.05 for the second quarter of 2012.
- Cash and investments as of June 30, 2013 totaled $62.8 million compared to $50.0 million as of December 31, 2012.
Year-to-Date Financial SummaryBioprocessing product revenue for the six-month period ended June 30, 2013 was $24.9 million compared to $21.0 million for the same period in 2012, an increase of 19%. Total revenue for the six-month period ended June 30, 2013 was $34.0 million compared to $28.3 million during the same period in 2012, an increase of 20%. Operating expenses for the six-month period ended June 30, 2013 were $24.3 million compared to $25.9 million for the same period in 2012, a decrease of $1.5 million or 6%. For the first six months of 2013 compared to the same period in 2012, R&D expense decreased by $1.2 million or 21%, and SG&A expense decreased by $415,000 or 6%. Net income for the six-month period ended June 30, 2013 was $6.9 million compared to $2.8 million for the same period in 2012. Earnings per diluted share for the six-month period ended June 30, 2013 were $0.21 compared to $0.09 for the same period in 2012. This is the Company's second quarterly reporting period for which both the current and preceding year periods reflect combined financial results since the Company's acquisition of Novozymes Biopharma AB (now Repligen Sweden AB) in December 2011. "Strong demand for Protein A ligands and a substantial increase in sales of our OPUS ® pre-packed chromatography columns were key drivers in achieving record bioprocessing product sales during the second quarter," said Walter C. Herlihy, Ph.D., President and CEO of Repligen. "Product margin gains reflect the impact of cost reductions at Repligen Sweden AB as well as improved manufacturing capacity utilization tied to higher order volumes and increased production." Second Quarter Business Highlights
- We experienced increased demand for Protein A affinity ligands as well as our larger (process-scale) OPUS® pre-packed chromatography columns.
- In alignment with our strategic goal to outlicense our portfolio of therapeutic assets and in accordance with our worldwide licensing agreement with Pfizer Inc. for our spinal muscular atrophy (SMA) program (led by RG3039), we substantially completed the transition of this program to Pfizer. Under the terms of this agreement, Repligen is eligible to receive from Pfizer up to $65 million in additional milestones as well as royalties on future sales.
- We analyzed the pharmacology data and biomarker activity from our Phase 1 trial in Friedreich's ataxia (FA) patients of our product candidate, RG2833, a compound that interferes with the function of the histone deacetylase (HDAC) class of enzymes. The trial results show that RG2833 was well tolerated and able to improve the expression of frataxin - a disease biomarker – in a dose-dependent manner. While there were no adverse events reported, the generation of potentially toxic metabolites was observed. Overall, the Phase 1 results support the use of an oral HDAC inhibitor in the treatment of FA, however we believe that other compounds in our HDAC inhibitor portfolio may be more suitable than RG2833 for clinical development. Consistent with our focus on bioprocessing, we are seeking non-profit and biopharmaceutical development partners to support future development.
- Total revenue for the full year 2013 is expected to be $65-$67 million, an increase from our prior guidance of $63-$65 million. This projection includes the receipt of royalties from Bristol-Myers Squibb on its U.S. sales of Orencia® which the Company will no longer receive after December 31, 2013.
- Bioprocessing product revenue for the full year 2013 is expected to be $46-$48 million, consistent with our prior guidance and reflecting product sales growth of 10%-15%. Our bioprocessing business projections for the full year 2013 also include the following:
- Bioprocessing product gross profit margin is expected to be approximately 50%.
- Bioprocessing related R&D is expected to be approximately $5.0 million (of approximately $6.0 million total R&D); SG&A expense is expected to be approximately $12.3 million, all of which is attributable to bioprocessing.
- Total operating income for the full year 2013 is expected to be $20-$22 million, consistent with our prior guidance.
- Total net income for the full year 2013 is expected to be $16-$18 million, a decrease from our prior guidance of $18-$20 million, due primarily to a non-cash increase in tax expense.
- We expect to end the year 2013 with $66-$70 million in cash and investments, an increase from our prior guidance of $65 million.
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)|
|Three months ended June 30,||Six months ended June 30,|
|Product revenue||$ 13,013,610||$ 11,659,239||$ 24,947,879||$ 21,001,840|
|Royalty and other revenue||4,495,357||3,864,581||9,017,081||7,346,441|
|Cost of product revenue||5,297,809||7,345,257||12,194,417||12,617,800|
|Cost of royalty and other revenue||642,736||536,933||1,219,593||999,021|
|Research and development||2,306,332||2,905,658||4,489,736||5,714,121|
|Selling, general and administrative||3,123,940||3,418,233||6,432,039||6,846,769|
|Contingent consideration - fair value adjustments||35,387||--||(18,587)||--|
|Gain on bargain purchase||--||--||--||(314,244)|
|Total operating expenses||11,406,204||14,206,081||24,317,198||25,863,467|
|Income from operations||6,102,763||1,317,739||9,647,762||2,484,814|
|Other (expense) income||(122,263)||458,298||(93,182)||567,559|
|Income before income taxes||6,033,703||1,778,193||9,655,771||3,063,572|
|Income tax provision||1,494,516||208,230||2,778,348||267,137|
|Net income||$ 4,539,187||$ 1,569,963||$ 6,877,423||$ 2,796,435|
|Earnings per share:|
|Basic||$ 0.14||$ 0.05||$ 0.22||$ 0.09|
|Diluted||$ 0.14||$ 0.05||$ 0.21||$ 0.09|
|Weighted average shares outstanding:|
|Comprehensive income (loss)||$ 3,650,661||$ (159,166)||$ 5,730,306||$ 2,155,131|
|Balance Sheet Data:||June 30, 2013||December 31, 2012|
|Cash, cash equivalents and marketable securities*||$ 62,790,699||$ 49,969,871|
|*does not include restricted cash|
CONTACT: Sondra S. Newman Director Investor Relations Repligen Corporation (781) 419-1881 firstname.lastname@example.org