REPLIGEN CORP [RGEN] Filings

10-Q 1 rgen-20210930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-14656

REPLIGEN CORPORATION

(Exact Name of Registrant as Specified in its Charter)



Delaware	04-2729386
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

41 Seyon Street, Bldg. 1, Suite 100 Waltham, MA	02453
(Address of Principal Executive Offices)	(Zip Code)

(781) 250-0111

Registrant’s Telephone Number, Including Area Code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Stock, par value $0.01 per share	RGEN	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:



Large accelerated filer		Accelerated filer	

Non-accelerated filer		Smaller reporting company	

Emerging growth company	

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.): Yes  No 

The number of shares outstanding of the registrant’s common stock on October 25, 2021 was 55,288,528.

Table of Contents



		PAGE

PART I -	FINANCIAL INFORMATION

Item 1.	Financial Statements (interim periods unaudited)

	Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020		4

	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020		5

	Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2021 and 2020		6

	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020		7

	Notes to Unaudited Consolidated Financial Statements		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		38

Item 4.	Controls and Procedures		38

PART II -	OTHER INFORMATION

Item 1.	Legal Proceedings		40

Item 1A.	Risk Factors		40

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		40

Item 3.	Defaults Upon Senior Securities		40

Item 4.	Mine Safety Disclosures		40

Item 5.	Other Information		40

Item 6.	Exhibits		41

Signatures				42

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

REPLIGEN CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands, except share data)


	September 30,			December 31,
	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	621,098		$	717,292
Accounts receivable, net of reserves of $1,214 and $762 at September 30, 2021 and December 31, 2020, respectively		122,048			71,389
Inventories, net		156,163			95,025
Prepaid expenses and other current assets		11,545			18,676
Total current assets		910,854			902,382
Noncurrent assets:
Property, plant and equipment, net		99,652			66,870
Intangible assets, net		340,163			287,100
Goodwill		833,559			618,305
Deferred tax assets		1,542			2,481
Operating lease right of use assets		55,007			25,176
Other noncurrent assets		620			573
Total noncurrent assets		1,330,543			1,000,505
Total assets	$	2,241,397		$	1,902,887
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	28,194		$	16,880
Operating lease liability		5,528			5,254
Accrued liabilities		63,394			53,085
Convertible senior notes, current portion, net		252,323			243,737
Total current liabilities		349,439			318,956
Noncurrent liabilities:
Deferred tax liabilities		39,125			27,032
Noncurrent operating lease liability		55,909			26,425
Noncurrent contingent consideration		79,962			—
Other noncurrent liabilities		1,697			1,324
Total noncurrent liabilities		176,693			54,781
Total liabilities		526,132			373,737
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding		—			—
Common stock, $0.01 par value; 80,000,000 shares authorized; 55,283,988 shares at September 30, 2021 and 54,760,837 shares at December 31, 2020 issued and outstanding		553			548
Additional paid-in capital		1,559,681			1,460,748
Accumulated other comprehensive (loss) income		(9,919	)		2,085
Retained earnings		164,950			65,769
Total stockholders’ equity		1,715,265			1,529,150
Total liabilities and stockholders’ equity	$	2,241,397		$	1,902,887

The accompanying notes are an integral part of these consolidated financial statements.

REPLIGEN CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, amounts in thousands, except per share data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenue:
Products	$	178,177		$	94,029		$	483,834		$	257,521
Royalty and other revenue		39			31			179			91
Total revenue		178,216			94,060			484,013			257,612
Costs and operating expenses:
Cost of product revenue		75,495			39,626			197,232			108,471
Research and development		9,154			4,422			25,155			13,460
Selling, general and administrative		48,373			29,051			131,809			83,277
Total costs and operating expenses		133,022			73,099			354,196			205,208
Income from operations		45,194			20,961			129,817			52,404
Other income (expenses):
Investment income		44			82			137			1,699
Interest expense		(3,220	)		(3,052	)		(9,470	)		(9,032	)
Other expenses		(786	)		(248	)		(1,789	)		(632	)
Other expenses, net		(3,962	)		(3,218	)		(11,122	)		(7,965	)
Income before income taxes		41,232			17,743			118,695			44,439
Income tax provision		7,734			3,191			19,514			4,211
Net income	$	33,498		$	14,552		$	99,181		$	40,228
Earnings per share:
Basic	$	0.61		$	0.28		$	1.81		$	0.77
Diluted	$	0.58		$	0.27		$	1.74		$	0.75
Weighted average common shares outstanding:
Basic		55,015			52,545			54,918			52,341
Diluted		57,368			53,469			57,072			53,300

Net income	$	33,498		$	14,552		$	99,181		$	40,228
Other comprehensive income (loss):
Foreign currency translation adjustment		(5,550	)		4,390			(12,004	)		5,304
Comprehensive income	$	27,948		$	18,942		$	87,177		$	45,532

The accompanying notes are an integral part of these consolidated financial statements.

REPLIGEN CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, amounts in thousands, except share data)


	Nine Months Ended September 30, 2021
	Common Stock
	Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Total Stockholders' Equity
Balance at December 31, 2020		54,760,837		$	548		$	1,460,748		$	2,085		$	65,769	$	1,529,150
Net income		—			—			—			—			99,181		99,181
Issuance of common stock for debt conversion		7			0			2			—			—		2
Exercise of stock options and vesting of stock units		257,387			2			1,989			—			—		1,991
Issuance of common stock pursuant to the acquisition of Avitide Inc.		271,096			3			77,573			—			—		77,576
Tax withholding on vesting of restricted stock units		(5,339	)		(0	)		(1,252	)		—			—		(1,252	)
Stock-based compensation expense		—			—			20,476			—			—		20,476
True up of costs related to the December 2020 issuance of common stock		—			—			145			—			—		145
Translation adjustment		—			—			—			(12,004	)		—		(12,004	)
Balance at September 30, 2021		55,283,988		$	553		$	1,559,681		$	(9,919	)	$	164,950	$	1,715,265


	Three Months Ended September 30, 2021
	Common Stock
	Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at June 30, 2021		54,969,481		$	550		$	1,475,436		$	(4,369	)	$	131,452	$	1,603,069
Net income		—			—			—			—			33,498		33,498
Issuance of common stock for debt conversion		4			0			1			—			—		1
Exercise of stock options and vesting of stock units		48,746			0			1,131			—			—		1,131
Issuance of common stock pursuant to the acquisition of Avitide Inc.		271,096			3			77,573			—			—		77,576
Tax withholding on vesting of restricted stock units		(5,339	)		(0	)		(1,252	)		—			—		(1,252	)
Stock-based compensation expense		—			—			6,792			—			—		6,792
Translation adjustment		—			—			—			(5,550	)		—		(5,550	)
Balance at September 30, 2021		55,283,988		$	553		$	1,559,681		$	(9,919	)	$	164,950	$	1,715,265


	Nine Months Ended September 30, 2020
	Common Stock
	Number of Shares		Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at December 31, 2019		52,078,258	$	521	$	1,068,431	$	(15,027	)	$	5,843	$	1,059,768
Net income		—		—		—		—			40,228		40,228
Exercise of stock options and vesting of stock units		528,442		5		7,073		—			—		7,078
Stock-based compensation expense		—		—		12,492		—			—		12,492
Translation adjustment		—		—		—		5,304			—		5,304
Balance as of September 30, 2020		52,606,700	$	526	$	1,087,996	$	(9,723	)	$	46,071	$	1,124,870


	Three Months Ended September 30, 2020
	Common Stock
	Number of Shares		Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at June 30, 2020		52,494,884	$	525	$	1,082,096	$	(14,113	)	$	31,519	$	1,100,027
Net income		—		—		—		—			14,552		14,552
Exercise of stock options and vesting of stock units		111,816		1		1,675		—			—		1,676

REPLIGEN CORP [RGEN] Filings
10-Q	[2021-10-28]
10-Q	[2021-07-27]
10-Q	[2021-05-04]
10-K	[2021-02-24]
10-Q	[2020-11-05]
10-Q	[2020-07-30]
10-Q	[2020-05-06]
10-K	[2020-02-26]
10-Q	[2019-10-31]
10-Q	[2019-08-01]
10-Q	[2019-05-09]
10-K	[2019-03-01]
10-Q	[2018-11-01]
10-Q	[2018-08-02]
10-Q	[2018-05-08]
10-K	[2018-02-22]
10-Q	[2017-11-09]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-02-23]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-05]
10-K	[2016-02-25]
10-Q	[2015-11-05]
10-Q	[2015-08-06]
10-Q	[2015-05-08]
10-K	[2015-03-17]
10-Q	[2014-11-07]
10-Q	[2014-08-11]
10-Q	[2014-05-09]
10-K	[2014-03-14]
10-Q	[2013-11-08]
10-Q	[2013-08-07]
10-Q	[2013-05-07]
10-K	[2013-03-15]
10-Q	[2012-11-08]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-03-15]