REPLIGEN CORP [RGEN] Filings

10-Q 1 rgen-20230630.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 June 30, 2023


	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 July 31, 2023 was 55,756,322.

Table of Contents


		PAGE
PART I -	FINANCIAL INFORMATION

Item 1.	Financial Statements (interim periods unaudited)

	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2023 and 2022	4

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022	5

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	7

	Notes to Unaudited Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	32

PART II -	OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	35

Signatures		36

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

REPLIGEN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands, except share data)


	June 30,			December 31,
	2023			2022
ASSETS
Current assets:
Cash and cash equivalents	$	603,656		$	523,458
Marketable securities held to maturity		—			100,299
Accounts receivable, net of reserves of $1,571 and $1,365 at June 30, 2023 and December 31, 2022, respectively		120,304			116,247
Inventories, net		240,869			238,277
Prepaid expenses and other current assets		33,754			19,837
Total current assets		998,583			998,118
Noncurrent assets:
Property, plant and equipment, net		202,564			190,673
Intangible assets, net		351,704			353,676
Goodwill		870,688			855,513
Deferred tax assets		1,756			840
Operating lease right of use assets		122,044			125,023
Other noncurrent assets		1,664			815
Total noncurrent assets		1,550,420			1,526,540
Total assets	$	2,549,003		$	2,524,658
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	23,787		$	27,554
Operating lease liability		2,889			6,957
Current contingent consideration		16,363			13,950
Accrued liabilities		45,023			71,120
Convertible Senior Notes, net		285,521			284,615
Total current liabilities		373,583			404,196
Noncurrent liabilities:
Deferred tax liabilities		21,897			23,000
Noncurrent operating lease liability		134,438			131,389
Noncurrent contingent consideration		44,277			51,559
Other noncurrent liabilities		3,882			3,814
Total noncurrent liabilities		204,494			209,762
Total liabilities		578,077			613,958
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; 55,744,896 shares at June 30, 2023 and 55,557,698 shares at December 31, 2022 issued and outstanding		557			556
Additional paid-in capital		1,561,393			1,547,266
Accumulated other comprehensive loss		(37,189	)		(34,394	)
Accumulated earnings		446,165			397,272
Total stockholders’ equity		1,970,926			1,910,700
Total liabilities and stockholders’ equity	$	2,549,003		$	2,524,658

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

REPLIGEN CORPORATION

Condensed CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue:
Products	$	159,133		$	207,597		$	341,754		$	413,960
Royalty and other revenue		36			36			75			73
Total revenue		159,169			207,633			341,829			414,033
Costs and operating expenses:
Cost of product revenue		79,307			86,260			161,152			168,616
Research and development		9,706			10,440			21,860			22,595
Selling, general and administrative		48,966			54,649			105,136			108,949
Contingent consideration		1,791			(6,884	)		3,026			(9,295	)
Total costs and operating expenses		139,770			144,465			291,174			290,865
Income from operations		19,399			63,168			50,655			123,168
Other income (expenses):
Investment income		5,964			708			11,450			785
Interest expense		(274	)		(271	)		(544	)		(563	)
Amortization of debt issuance costs		(457	)		(453	)		(914	)		(905	)
Other expenses		528			(3,396	)		605			(3,798	)
Other income (expenses), net		5,761			(3,412	)		10,597			(4,481	)
Income before income taxes		25,160			59,756			61,252			118,687
Income tax provision		5,096			9,895			12,359			21,862
Net income	$	20,064		$	49,861		$	48,893		$	96,825
Earnings per share:
Basic	$	0.36		$	0.90		$	0.88		$	1.75
Diluted (Note 11)	$	0.35		$	0.88		$	0.86		$	1.68
Weighted average common shares outstanding:
Basic		55,705			55,444			55,648			55,399
Diluted (Note 11)		56,858			56,721			56,932			57,842

Net income	$	20,064		$	49,861		$	48,893		$	96,825
Other comprehensive income (loss):
Foreign currency translation adjustment		(6,068	)		(15,517	)		(2,795	)		(20,205	)
Comprehensive income	$	13,996		$	34,344		$	46,098		$	76,620

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

REPLIGEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, amounts in thousands, except share data)


	Three Months Ended June 30, 2023
	Common Stock
	Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at March 31, 2023		55,644,301		$	556		$	1,544,956		$	(31,121	)	$	426,101	$	1,940,492
Net income		—			—			—			—			20,064		20,064
Issuance of common stock for debt conversion		6			0			(3	)		—			—		(3	)
Exercise of stock options and vesting of stock units		36,184			1			32			—			—		33
Tax withholding on vesting of restricted stock units		(9,631	)		(0	)		(1,547	)		—			—		(1,547	)
Issuance of common stock pursuant to the acquisition of FlexBiosys, Inc.		31,415			0			5,243			—			—		5,243
Issuance of common stock pursuant to the Avitide, Inc. contingent consideration earnout payment		42,621			0			7,229			—			—		7,229
Stock-based compensation expense		—			—			5,483			—			—		5,483
Translation adjustment		—			—			—			(6,068	)		—		(6,068	)
Balance at June 30, 2023		55,744,896		$	557		$	1,561,393		$	(37,189	)	$	446,165	$	1,970,926


	Three Months Ended June 30, 2022
	Common Stock
	Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at March 31, 2022		55,429,046		$	554		$	1,529,144		$	(21,574	)	$	258,277	$	1,766,401
Net income		—			—			—			—			49,861		49,861
Issuance of common stock for debt conversion		4			(0	)		(3	)							(3	)
Exercise of stock options and vesting of stock units		51,737			1			166			—			—		166
Tax withholding on vesting of restricted stock units		(14,869	)		(0	)		(2,448	)							(2,448	)
Stock-based compensation expense		—			—			6,985			—			—		6,985
Translation adjustment		—			—			—			(15,517	)		—		(15,517	)
Other		—			—			(82	)		—			—		(82	)
Balance at June 30, 2022		55,465,918		$	555		$	1,533,762		$	(37,091	)	$	308,138	$	1,805,364


	Six Months Ended June 30, 2023
	Common Stock
	Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings		Total Stockholders' Equity
Balance at December 31, 2022		55,557,698		$	556		$	1,547,266		$	(34,394	)	$	397,272	$	1,910,700
Net income		—			—			—			—			48,893		48,893
Issuance of common stock for debt conversion		6			—			(3	)		—			—		(3	)
Exercise of stock options and vesting of stock units		176,394			2			60			—			—		62
Tax withholding on vesting of restricted stock units		(63,238	)		(1	)		(11,139	)		—			—		(11,140	)
Issuance of common stock pursuant to the acquisition of FlexBiosys, Inc.		31,415			0

REPLIGEN CORP [RGEN] Filings
10-Q	[2023-08-02]
10-Q	[2023-05-02]
10-K	[2023-02-22]
10-Q	[2022-11-01]
10-Q	[2022-08-02]
10-Q	[2022-04-27]
10-K	[2022-02-17]
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]