Q4 2021 Repligen Corp Earnings Call

Good day, ladies and gentlemen, and welcome to weapons Incorporations fourth quarter of 2021 earnings Conference call. My name is Chad and I will be your coordinator.

Speaker 1: Good day, ladies and gentlemen, and welcome to Replicant Corporation's fourth quarter of 2021 earnings conference call. My name is Chad, and I will be your coordinator.

All participants will be in a listen only mode should you need assistance. Please signal our conference specialist by pressing the star key followed by Europe .

Speaker 1: All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Please note that there will be a question and answer session. Following the Companys formal remarks to ask a question you may do so by pressing Star then one on your telephone keypad.

Speaker 1: Please note that there will be a question and answer session following the company's formal remarks. To ask a question, you may do so by pressing star then 1 on your telephone keypad.

Speaker 1: In order to accommodate all individuals who wish to ask questions, there will be a limit to two questions at a time. Please also note.

In order to accommodate all individuals who wish to ask questions. There will be a limit to two questions at a time.

Please also note today's event is being recorded.

I would now like to turn the call over to your host for todays call Sondra Newman head of Investor Relations. Please go ahead.

Speaker 1: I would now like to turn the call over to your host for today's call, Sandra Newman, Head of investor relations for Repliagen. Please go ahead.

Speaker 2: Thank you, Chad. Welcome to everyone listening in today. On this call, we'll cover business highlights and financial performance for the three and 12-month periods ended December 31, 2021. We'll also provide financial guidance for the current year 2022. Repligen's President and CEO Tony Hunt and our CFO John Snodgrass will deliver our report and then address questions.

Thank you Chad and welcome to everyone listening in today on this call will cover business highlights and financial performance for the three and 12 month periods ended December 31st 2021, well also provide financial guidance for the current year 2022 <unk>.

Jin President and CEO , Tony Hunt and our CFO , John Snodgrass will deliver a report and then address questions. As a reminder, the forward looking statements that we make during this call, including those regarding our business goals and expectations for the financial performance of the company are subject to risks and uncertainties that may cause actual event.

Speaker 2: As a reminder, the forward-looking statements that we make during this call, including those regarding our business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning risks related to our business is included in our annual report on Form 10-K , which we filed today, and other filings that we make with the SEC.

Our results to differ additional information concerning risks related to our business is included in our annual report on Form 10-K , which we filed today and other filings we make with the SEC.

Speaker 2: Today's comments reflect management's current views, which could change as a result of new information, future events, or otherwise. The company does not obligate or commit itself to update forward-looking statements, except as required by law.

Today's comments reflect management's current views, which could change as a result of new information future events or otherwise the company does not obligate or commit itself to update forward looking statements, except as required by law.

Speaker 2: During this call, we are providing non-GAAP results and guidance. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted to Replicant's website and on sec.gov.

During this call we are providing non-GAAP results and guidance reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted to Replicants website and on SEC Dot Gov.

Speaker 2: non-GAAP figures in today's report include the following, revenue growth at constant currency, gross profit and gross margin, operating expenses including R&D and FG&A, operating income and operating margin, contingent consideration, income tax expense, net income, and earnings per share as well as EBITDA and adjusted EBITDA.

non-GAAP figures in today's report include the following revenue growth at constant currency gross profit and gross margin operating expenses, including R&D and SG&A operating income and operating margin contingent consideration income tax expense net income and earnings per share as well as EBITDA.

And adjusted EBITDA.

Speaker 2: These adjusted financial measures should not be viewed as an alternative to GAAP measures but are intended to better enable investors to benchmark Replicant's current results against historical performance and the performance of peers when evaluating investment opportunities. Now I'll turn the call over to Tony Hunt. Great. Thanks, Sandra. Good morning, everybody, and welcome to our 2021 year-end update.

These adjusted financial measures should not be viewed as an alternative to GAAP measures, but are intended to better enable investors to benchmark Replicants current results against historical performance and the performance of peers when evaluating investment opportunities now I'll turn the call over to Tony Hunt.

Thanks Sandra.

Morning, everybody and welcome to our 2021 year end update.

Speaker 3: We are delighted with the way we finished off the year with 69% organic growth in the fourth quarter, 71% organic growth for the full year and overall 2021 growth for the company coming in at 83%.

We are delighted with the way we finished off the year with 69% organic growth in the fourth quarter, 71% organic growth for the full year on overall 2021 growth for the company coming in at 83%.

Speaker 3: Our base business continues to deliver above market growth, with 42% growth in the quarter and 38% for the year, reflecting accelerated demand for our products on top of COVID tailwind.

Our base business continues to deliver above market growth with 42% and close in the quarter and 38% for the year, reflecting accelerated demand for our products on top of Covid tailwind.

Speaker 3: Overall, 2021 was an outstanding year for the company as we continue to execute on our core business strategy of enabling our bioprocess customers with highly differentiated technologies.

Overall, 'twenty or 'twenty, one was an outstanding year for the company as we continue to execute on our core business strategy of enabling our bioprocess customers with highly differentiated technologies.

So let's cover some of the key highlights.

On the M&A front, we strengthened our market position in filtration with Polycom deal and proteins with the appetite acquisition and in fluid management with the Bowflex solutions deal.

Speaker 3: On the M&A front, we strengthened our market position in filtration with the PolyMEM deal, in proteins with the Avatite acquisition, and in fluid management with the BioFlex solution.

Speaker 3: We are well-positioned, as we enter 2022, to take additional market share with strong brand recognition, a reputation in our industry as the innovation leader in bioprocessing.

We are well positioned as we enter 2022 to take additional market share with strong brand recognition a reputation in our industry as the innovation leader in bio processing and a growing portfolio of new products, many targeting gene therapy.

Speaker 3: and a growing portfolio of new products, many targeting gene therapy.

Speaker 3: Operationally, we increased our capacity between three and ninefold across all our major product lines.

Operationally, we increased our capacity between three and nine fold across all our major product lines. This allows us to support in a very meaningful way the ongoing fight against the pandemic.

Speaker 3: This allowed us to support in a very meaningful way the ongoing fight against the pandemic.

Speaker 3: with the company delivering approximately $190 million in product to the leading COVID vaccine manufacturers.

But the company delivering approximately $190 million in product to the leading COVID-19 vaccine manufacturers the.

Speaker 3: The increased capacity also supported our base business growth, which was exceptional, with adoption by gene therapy customers being a key driver of this growth.

The increased capacity also supported our base business called which was exceptional with adoption by gene therapy customers being a key driver of this clubs.

Our total addressable market increased significantly from $3 7 billion in 2020 to over 8 billion in 2021, driven by Covid market expansion base business acceleration on the M&A side have allowed us to expand our markets.

Speaker 3: Our total addressable market increased significantly from $3.7 billion in 2020 to over $8 billion in 2021, driven by COVID market expansion, base business acceleration, and M&As that have allowed us to expand our market.

Uh huh.

Speaker 3: Finally, 2021 was all about increased commitment in the area of safety, sustainability, and DEI.

Finally, 2021 was all about increased commitment in the area of safety sustainability and D E.

Speaker 3: We published our first sustainability report in Q4.

We published our first sustainability report in Q4.

Speaker 3: Some highlights in the report include a reduction in carbon emissions of 12% versus our baseline year in 2019, the conversion to 100% renewable energy at four key sites, and the launch of our diversity and inclusion initiative.

Some highlights in the reports include a reduction in carbon emissions of 12% versus our baseline year in 2019, the conversion to 100% renewable energy of four key sites and the launch of our diversity and inclusion initiative.

Speaker 3: In 2022, we will focus our efforts on DEI initiatives, moving to 100% renewable energy at additional sites, packaging, and single-use recycling programs.

In 2022, we will focus our efforts on <unk> initiatives moving to a 100% renewable energy at additional sites packaging and single use recycling programs.

Before jumping into our business highlights for Q4 and full year I want to spend a few minutes on the strategic initiatives that we have highlighted at the beginning of the year number one was around building out our capacity to support our business unit growth number two was around increasing our market traction and gene therapy three was around launching disruptive.

Speaker 3: Before jumping into our business highlights for Q4 and full year, I want to spend a few minutes on the strategic initiatives that we have highlighted at the beginning of the year. Number one was around building out our capacity to support our business unit growth. Number two was around increasing our market traction in gene therapy. Three was around launching disruptive technologies from our R&D pipeline, and four was around integrating EMT, NMS, and Artisan into Repligen. So that...

Apologies from our R&D pipeline and pork was around integrating emt animas and artisan interrupted.

So let's start with our progress on capacity.

Speaker 3: Our goal, like many of our peers, was to rapidly expand capacity across our product line.

Our goal like many of our peers was to rapidly expand capacity across our product lines.

Speaker 3: The progress we made was significant, especially in the area of filtration, where the combination of PolyMEM acquisition and the expansion programs at our Rancho site increased our hollow fiber capacity over ninefold.

The progress we've made with significant especially in the area of filtration or the combination of Polycom acquisition and the expansion programs at our Rancho size increased our hollow fiber capacity over nine volt we.

Speaker 3: We also brought our European Opus manufacturing facility online and by the end of 2021, 90% of our European customers had qualified in Breda for production of prepack columns.

We also brought our European Opus manufacturing facility online by the end of 2021, 90% of our European customers have quantified in brighter for production of Prepacked columns.

Much of what we accomplished last year came from a combination of increased efficiency and expansion of our workforce.

Speaker 3: Much of what we accomplished last year came from a combination of increased efficiency and expansion of our workforce.

In 2022, we expect to spend an additional $60 million to $70 million to complete the majority of our size and capacity expansion plans.

Speaker 3: In 2022, we expect to spend an additional 60 to 70 million dollars to complete the majority of our site and capacity expansion plan.

Speaker 3: This includes adding more filtration space in Rancho and Marlborough and opening up our first assembly center for fluid management in Hopkington Mall.

This includes adding more filtration space in Rancho and Marlboro and opening up our first Assembly center for fluid management and Hopkinton mass.

Speaker 3: In cell and gene therapy, we increased our market presence with overall growth close to 40% for the year, driven by our filtration and process analytics portfolios and increased traction in Asia.

And cell and gene therapy, we increased our market presence with overall growth close to 40% for the year driven by our filtration and process analytics portfolios and increased traction in Asia.

Speaker 3: We successfully focused our efforts on acquiring new customers, adding about 50 new accounts during the year. We finished 2021 with approximately 100 significant accounts, up from 70 in 2020.

We successfully focused our efforts on acquiring new customers, adding about 50, new accounts during the year we.

We finished 2021 with approximately 100 significant accounts up from 17 in 2020.

With our gene therapy application center up and running on our focus in the industry on the scale up we expect growth to be north of 30% here in 2022.

Speaker 3: With our Gene Therapy Application Center up and running and a focus in the industry on scale-up, we expect growth to be north of 30% here in 2022.

Speaker 3: New products continue to be a core pillar in our overall strategy.

New products continue to be a core pillar of our overall strategy.

Speaker 3: In 2021, our R&D team delivered on three key programs.

In 2021, our R&D team delivered on three key programs.

Speaker 3: The first was around launching the FlowVPX platform, which is a GMP-compliant inline analytics system.

First was around launching the flow V. P X platform, which is a GMP compliant in line analytics system, which has been quickly adopted by our customer base on the manufacturing floor.

Speaker 3: which has been quickly adopted by our customer base on the manufacturing floor.

Speaker 3: Second was working with Navigo and PuroLite Life Sciences to launch the industry's first protein A resin to effectively purify pH sensitive monoclonal antibodies overcoming aggregation challenges.

Second was working with <unk> on pure light life Sciences to launch the industry's first protein a resin to effectively purify ph sensitive monoclonal antibodies overcoming aggregation challenges.

And the third was around optimizing our artisan custom systems to deliver on our portfolio of standardized chromatography systems.

Speaker 3: And the third was around optimizing our artisan custom systems to deliver on a portfolio of standardized chromatography systems.

Speaker 3: We expect 2022 to be another strong year for R&D, as we focus on launching a family of AAV resins, which we announced earlier this week, and expanding our artisan family of filtration systems.

We expect 2022 to be another strong year for R&D as we focus on launching a family of AAV resins, which we announced earlier this week and expanding our artisan family at filtration systems.

Speaker 3: reinforcing our position in bioprocessing as the innovation leader.

Enforcing our position in bio processing as the innovation leader.

Speaker 3: Finally, on the integration front, we successfully completed the integration of EMT, NMS, and Artisan into Repli.

Finally on the integration front, we successfully completed the integration of Emt and a mess on the artisan into Rutledge.

Speaker 3: The combined business performance came in as expected, up approximately 26% on a pro-forma basis, while contributing in a very meaningful way to the manufacturing of internal refrigerant products.

The combined business performance came in as expected up approximately 26% on a pro forma basis, while contributing in a very meaningful way to the manufacturing of internal retrofit products.

The integration of E M T and artisan was a key focus for us in 2021 with the build out both our Clifton Park, New York and Waterford, Ireland site to address the growing need for single use flow paths in our industry.

Speaker 3: The integration of EMT and Artisan was a key focus for us in 2021 with the build out of both our Clifton Park, New York and Waterford, Ireland sites to address the growing need for single use flow paths in our industry.

Speaker 3: With the addition of BioFlex solutions in late 2021, we now have a broad portfolio of fluid management products, and we plan to move these products into a new franchise for the company here in 2022. So moving now to Q&A.

With the addition of Bowflex solutions in late 2021, we now have a broad portfolio of fluid management products and we plan to move these products into a new franchise for the company here in 2022.

So moving now to Q4 and pulled your business performance.

Speaker 3: As reported today, we hit a record quarter with nearly $187 million in sales and overall growth of 72% with all four franchises delivering exceptional performance in the quarter.

As reported today, we had a record quarter with nearly $187 million in sales and overall growth of 72% with all four franchises delivering exceptional performance in the quarter.

Speaker 3: Within our base business growth, gene therapy revenues were up 85% in the quarter and approximately 40% for the year, reinforcing our market position and demonstrating accelerated traction for our products, especially in the second half of last year.

Within our base business growth gene therapy revenues were up 85% in the quarter, an approximately 40% for the year re.

Reinforcing our market position and demonstrating accelerated traction for our products, especially in the second half of last year.

Speaker 3: COVID-related revenues also increased in the quarter, driven by increased demand from COVID vaccine customers and increased production output coming from our PolyMed facility.

Covid related revenues also increased in the quarter driven by increased demand from Covid vaccine customers and increase production output coming from our polygon facility.

Speaker 3: COVID demand accounted for 33% of our revenue, or 34 points of total revenue growth in the quarter.

Covid demand accounted for 33% of our revenue.

The four points of total revenue growth in the quarter.

Speaker 3: For the year, COVID revenues increased to $190 million, representing 28% of.

For the year Covid revenues increased to $190 million.

Representing 28% of our overall revenue.

Speaker 3: We continue to see strong demand from our COVID customer base and expect that COVID accounts will contribute.

We continue to see strong demand from our Covid customer base unexpected COVID-19 accounts will contribute to.

Speaker 3: $200 to $220 million in revenues for the company this year.

$200 million to $220 million in revenues for the company this year.

Speaker 3: On the orders front, we finished the year up approximately 80% year-on-year, with base business orders growing at 40%.

On the orders front, we finished the year up approximately 80% year on year with base business orders growing at 40%.

Speaker 3: In the quarter, base business orders were up over 20% off a tough comp in Q4 of 2020.

In the quarter base business orders were up over 20% off a tough comp in Q4 of 2020.

Speaker 3: Sequentially, COVID orders were down following a stellar Q3 when the majority of COVID orders for 2022 were placed.

Sequentially Cobot orders were down following a stellar Q3, when the majority of Covid orders for 2022 were placed our.

Speaker 3: Our COVID order book for 2022 is now over $180 million and very much in line with our expectations for the year.

Our Covid order book for 2022 is now over $180 million.

Much in line with our expectations for the year.

So moving to franchise level performance, where as of this report we are replacing revenue from advertising and affinity resins, which to date have been in chromatography into our proteins franchise to better align with our affinity ligands business.

Speaker 3: So moving to franchise-level performance, whereas at this report, we are placing revenue from Avatite and Affinity Resins, which to date have been in chromatography into our Proteins franchise to better align with our Affinity ligands business.

Speaker 3: Our chromatography franchise will now consist of OpusPrep.com's Artisan Chromatography Systems and ELISA kit.

Our chromatography franchise will now consist of opus pre packed columns artisan chromatography systems and Elisa kits.

Our chromatography business had a solid quarter and was up 29% for the year.

Speaker 3: Our chromatography business had a solid quarter and was up 29% for the year.

Speaker 3: excluding the contribution from Avitide and Affinity Resins, and up approximately 40% if these products were included.

Excluding the contribution from appetite into finished resins and up approximately 40%. If these products were included.

Speaker 3: Within chromatography, our OPUS revenues for full year 2021 increased by 22%.

Within chromatography, our opus revenues for full year 2021 increased by 2020 by 22%.

Speaker 3: In the quarter, and throughout the year, we have seen strong demand for our largest Opus 80 columns, as more customers put Opus into late-stage and commercial processes, including COVID vaccines.

In the quarter and throughout the year, we have seen strong demand for our largest opus 80, Collins as more customers put opus into late stage and commercial processes, including Covid vaccines.

Speaker 3: But the main challenge we are dealing with continues to be the extended lead times on resin availability from the top suppliers.

But the main challenge we are dealing with continues to be the extended lead times on resin availability from the top suppliers.

Speaker 3: We expect that the resident supply issue will improve as we move through 2022, which will accelerate growth for Opus in the second half of this year.

We expect that the resin supply issue will improve as we move through 2022, which will accelerate growth for opus in the second half of this year.

Speaker 3: We expect our chromatography franchise to grow in the range of 25% to 30% for 2022.

We expect our chromatography franchise to grow in the range of 25% to 30% for 2022.

Our proteins franchise had another strong quarter and finished the year up 48% with advertise on affinity resins included an approximately 40% excluded.

Speaker 3: Our proteins franchise had another strong quarter and finished the year up 48% with Avatite and Affinity Resins included and approximately 40% excluded.

Speaker 3: 2021 was a pivotal year for us as we executed strategically on many fronts.

2021 was a pivotal year for us as we executed strategically on many fronts.

Speaker 3: First, we signed a new supply agreement with Sativa. Second, we developed a new ligand and launched our NGL high pH resin with Pure Light. And third, we acquired Avatide, increasing our affinity content.

First we signed a new supply agreement with say Tivo second we developed a new ligands and launched our NGL high ph resin with pure light and third we acquired appetite increasing our affinity content.

Speaker 3: In 2022, we expect that demand from Cytiva will decrease and will be mostly offset by avatar revenue and continued traction in the marketplace for our NGL ligament.

In 2022, we expect that demand from site Chiba will decrease and will be mostly offset by advertising revenue continued traction in the marketplace for NGL ligands.

Speaker 3: Overall, we expect proteins to be down approximately 5% in 2022.

Overall, we expect proteins to be down approximately 5% in 2022.

Yeah.

Speaker 3: Our filtration franchise was the big growth driver for Repligen in 2021.

Our filtration franchise was the big growth driver for Rutledge and in 2021.

Speaker 3: up more than 100% in the quarter and over 130% for the year.

More than 100% in the quarter and over 130% for the year.

Speaker 3: The story of the quarter and the year was the continued momentum in the marketplace for our flat sheet cassette, hollow fiber, and systems products.

The story of the quarter and the year was the continued momentum in the marketplace for our flat sheet cassette hollow fiber and systems products.

Key highlights in the quarter included the launch of a new cross flow F. S system for flat sheet cassettes, the spec ing in exile a T F into multiple next generation commercial drugs and the acceleration in gene therapy demand.

Speaker 3: Key highlights in the quarter included the launch of our new cross-flow FS system for flat-sheet cassettes, the specking in of XLATF into multiple next-generation commercial drugs, and the acceleration in gene therapy development.

For the year, we saw significant growth in Covid vaccine revenues, which comprised about 40% of our overall franchise revenue.

Speaker 3: For the year, we saw significant growth in COVID vaccine revenues, which comprised about 40% of our overall franchise revenue.

Speaker 3: With strong momentum in the marketplace, we expect the filtration franchise will grow in the range of 25% to 35% in 2022.

With strong momentum in the marketplace. We expect the filtration franchise will grow in the range of 30, 25% to 35% in 2022.

Finally, our process analytics franchise had an outstanding quarter and year in 2021.

Speaker 3: Finally, our process analytics franchise had an outstanding quarter and year in 2021.

Speaker 3: Revenue growth was over 50% for the quarter and 44% for the year.

Revenue growth was over 50% for the quarter and 44% for the year.

Speaker 3: The expanded commercial team has focused on new account development, which represented approximately 60% of Q4 revenues, and driving our VPE technology into new application areas, especially in cell and gene therapy.

We expanded commercial team is focused on new account development, which represented approximately 60% of Q4 revenues and driving our V. P technology into new application areas, especially in cell and gene therapy.

Speaker 3: We continue to be encouraged by the adoption of FlowVPX, and we expect 2022 to be another strong year for analytics with growth of approximately 25%.

We continue to be encouraged by the adoption of flow V. P X and we expect 'twenty to 'twenty two to be another strong year for analytics with growth of approximately 25%.

Overall, we expect the company to grow at 19% to 24% in 2022, including strong base business growth of 20% to 22% and organic growth in the range of 18% to 22%.

Speaker 3: Overall, we expect the company to grow at 19% to 24% in 2022, including strong-based business growth of 20% to 22% and organic growth in the range of 18% to 22%.

Speaker 3: As we move through the year, our strategic priorities will center on the following. Number one will be around building out our capacity to support accelerating growth in our businesses. Number two will be around successfully integrating Polymer, Avatite, and BioFlex solutions. Number three will be around launching new products, including AAV resins and Artisan TFF systems. And finally, number four will be on continued traction of cell and gene therapy accounts.

As we move through the year, our strategic priorities will center on the following number one will be around building out our capacity to support accelerating growth in our businesses number two will be run successfully integrating polycom appetite on XIAFLEX solutions number three will be around launching new products, including a.

E V resins, and artisan TFS systems, and finally number four will be on continued traction, but cell and gene therapy accounts.

Speaker 3: We believe we are well-positioned to gain further market share in bioprocessing over the next three to five years, and we are confident about hitting our goal of $1 billion by 2024.

We believe we are well positioned to gain further market share in bio processing over the next three to five years and we are confident about hitting our goal of $1 billion.

By 2024.

Before concluding I wish to recognize our 800 plus employees around the globe, including our new colleagues at polymer appetite and bio flex solutions for their commitment and leadership last year.

Speaker 3: Before concluding, I wish to recognize our 1,800-plus employees around the globe, including our new colleagues at Polymer, Avitide, and BioFlex Solutions, for their commitment and leadership last year. I also want to thank our loyal shareholders and customers for their part in Reflegent's success as we look forward to delivering another strong year here in 2022.

Also want to thank our loyal shareholders and customers for their parts and Rutledge and success as we look forward to delivering another strong year here in 2022 now.

Speaker 3: Now I'd like to turn the call over to John for a report on our financial performance.

Now I'd like to turn the call over to John for a report on our financial performance.

Thank you Tony and good day, everyone. Today, we are reporting our financial results for the fourth quarter 2021, as well as providing our financial guidance for the year 2022.

Speaker 1: Thank you, Tony, and good day, everyone. Today, we are reporting our financial results for the fourth quarter 2021, as well as providing our financial guidance for the year 2022.

Unless otherwise mentioned all financial measures discussed reflect adjusted non-GAAP measures.

Speaker 1: Unless otherwise mentioned, all financial measures discussed reflect adjusted, non-GAAP measures.

As emphasized in our press release. This morning, we have again delivered record revenue of $186 5 million in the quarter and $675 million for the full year.

Speaker 1: As emphasized in our press release this morning, we've again delivered record revenue of $186.5 million in the quarter and $670.5 million for the full year, as well as reporting strong earnings growth.

As well as reporting strong earnings growth.

Our base business strength was a highlight up 42% in the quarter and 38% for the year.

Speaker 1: Our base business strength was a highlight, up 42% in the quarter and 38% for the year.

We also continued to support Covid vaccine and therapeutic programs with our technologies with Covid programs accounting for 33% of our total revenue in the quarter and 28% of the total revenue for the year.

Speaker 1: We also continue to support COVID vaccine and therapeutic programs with our technologies with COVID programs accounting for 33% of our total revenue in the quarter and 28% of the total revenue for the year.

Speaker 1: In addition to delivering outstanding revenue growth of 83% year over year, it has been an incredibly fulfilling year at Repligen as we've executed on our numerous capacity expansion initiatives.

In addition to delivering outstanding revenue growth of 83% year over year. It has been an incredibly fulfilling year at replica.

We've executed on our numerous capacity expansion initiatives.

Speaker 1: In 2021, we spent approximately $71 million in CapEx, of which about 80% was investment in capacity.

In 2021, we spent approximately $71 million in capex of which about 80% was investment in capacity.

We also bought several new brought several new innovative products to the market through internal product development initiatives, we continue to spend approximately 5% of our growing revenue base on R&D.

Speaker 1: We also brought several new innovative products to the market through our internal product development initiative.

Speaker 1: We continue to spend approximately 5% of our growing revenue base on R&D, and 25% of our revenue in 2021 came from major product launches over the last seven years.

And 25% of our revenue in 2021 came from a major product launches over the last seven years.

Speaker 1: In addition, we continue to expand our relationships with gene and cell therapy customers, who in 2021 represented 11% of our total revenue.

In addition, we continued to expand our relationships with gene and cell therapy customers, who in 2021 represented 11% of our total revenue.

Speaker 1: And finally, we've continued with our significant progress in acquiring and integrating new businesses and technology.

And finally, we have continued with our significant progress in acquiring and integrating new businesses and technologies.

Speaker 1: We are also pleased to have closed on our acquisition of BioFlex solutions on December 16th, expanding our portfolio of fluid management products and bringing a previous supplier in-house.

We're also pleased to have closed on our acquisition of biotech solutions on December 16th expanding our portfolio of fluid management products and bringing our previous supplier in house.

The <unk> acquisition adds to an already impressive year on M&A with our strategic acquisitions of hollow fiber specialist paulino and affinity ligand developer appetite deals.

Speaker 1: The BioFlex acquisition adds to an already impressive year in M&A with our strategic acquisitions of HoloFiber specialist PolyMEM and AffinityLagan developer Avitide, deals which were completed earlier in the year.

Deals, which were completed earlier in the year.

Speaker 1: In addition, here in 2022, we've completed our Phase IV SAP implementation, going live with our Korea and India selling offices, and our Auburn and Hopkinton, Massachusetts locations in early February .

In addition here in 2022, we've completed our phase for a C. P implementation going live with our Korea, and India, selling offices and our Auburn in Hopkinton, Massachusetts locations in early February .

Speaker 1: Now transitioning to our fourth quarter and full year 2021 revenue commentary.

Now transitioning to our fourth quarter and full year 2021 revenue commentary.

For fourth quarter revenue.

For fourth quarter, we had revenue of $186 5 million, representing 72% reported and 69% organic growth.

Speaker 1: For fourth quarter, we had revenue of $186.5 million, representing 72% reported and 69% organic growth.

Speaker 1: with inorganic acquisition revenue accounting for five points of growth and foreign exchange driving a two-point headwind.

With inorganic acquisition revenue accounting for five points of growth and foreign exchange driving a two point headwind.

Speaker 1: To add further context to our fourth quarter growth, our base business contributed 33 points and COVID programs contributed 34 points.

To add further context to our fourth quarter growth our base business contributed 33 points and Cobra programs contributed 34 points.

In 2021, our full year revenue of 675 million represents reported growth of 83% and organic growth of 71% with 10 points of inorganic acquisition revenue and approximately two points of foreign exchange tailwind.

Speaker 1: In 2021, our full-year revenue of $670.5 million represents reported growth of 83% and organic growth of 71%, with 10 points of inorganic acquisition revenue and approximately 2 points of foreign exchange tailwind.

Speaker 1: Looking deeper into the components of our full year reported growth, our base business account accounted for 34 points and COVID revenues contributed 39.

Looking deeper into the components of our full year reported growth our base business account accounted for 34 points and Covid revenues contributed 39 points.

From a product product franchise viewpoint effective in this report and in our 10-K expected to be filed this week, we're shifting our affinity resin products into our proteins franchise from the historical positioning in chromatography.

Speaker 1: From a product franchise viewpoint, effective in this report and in our 10K expected to be filed this week, we are shifting our Affinity resin products into our proteins franchise from their historical positioning in chromatography.

Speaker 1: This shift will better align our franchise reporting streams with total available market reporting streams that we referenced.

This shift will better align our franchise reporting streams with total available market reporting streams that we referenced.

Speaker 1: With this change in effect, we are reporting full-year 2021 franchise revenue growth for filtration at 131 percent, chromatography at 29 percent, process analytics at 44 percent, and 48 percent.

With this change in effect, we are reporting full year 2021 franchise revenue growth for filtration at 131% chromatography at 29% process analytics a 44%.

And 48% for our proteins business.

As it relates to full year 2021 regional revenue growth for our total business. We continue to see positive traction in each of our three global regions.

Speaker 1: As it relates to full year 2021 regional revenue growth for our total business, we continue to see positive traction in each of our three global regions.

Speaker 1: Revenues from Asia and the rest of the world increased 136 percent. Europe grew 94 percent, and North America grew at 58 percent.

Revenues from Asia rest of the World increased 136%.

Europe grew 94% in North America grew at 58%.

Concerning our total business regional revenue distribution for the full year of 2021 Asia represented 19% Europe represented 40% and North America represented 41% of our global business.

Now moving down our income statement.

Adjusted gross profit in the fourth quarter of 2021 grew to $105 2 million, an increase of $44 1 million or <unk>, 72% compared to the same period in 2020.

Speaker 1: Adjusted gross margin of 56.4% for the fourth quarter was in line with the 56.3% level from the same period in 2020.

Adjusted gross margin of 56, 4% for the fourth quarter was in line with the 56, 3% level from the same period in 2020.

Adjusted gross profit for full year 2021 finished at $394 9 million, an increase of $183 8 million or 87% compared to 2020.

Adjusted gross margin for full year 2021 was 58, 9%.

120 basis point improvement year over year.

The improvement in gross margin was driven by strong volume leverage in our facilities, which outpaced capacity investments most significantly in the first half of 2021.

Now transitioning down the P&L to adjusted operating expenses.

Speaker 1: Now transitioning down the P&L to Adjusted Operating Expense.

Adjusted research and development expenses for the fourth quarter and full year 2021 were $4 seven and four 9% of total revenue respectively.

Our dollar level.

<unk> level increases and R&D spend were critical to the launch of several innovative new products, including our <unk> ATF lab scale controllers flow.

Speaker 1: FlowBPX, High pH Affinity Ligand, Cross-Flow Flat Sheet Filtration Systems, and Configure.

<unk> hi.

<unk> affinity ligand.

Cross flow flat sheet filtration systems, and Configurable artisan chromatography systems.

Speaker 1: Adjusted SG&A expenses for both the fourth quarter and full year 2021 were approximately 22% of total revenue.

Adjusted SG&A expenses for both the fourth quarter and full year 2021 were approximately 22% of total revenue.

Compared to 25% to 26% in the same 2020 period.

The year over year dollar increases were related to the timing of our 2000 22021 acquisitions.

And continuing investments in personnel facilities and equipment expansion supporting our long term growth expectations.

Now moving to adjusted earnings and EPS.

Adjusted operating income for the fourth quarter 2021 was $55 9 million, an increase of $28 6 million or 105% compared to fourth quarter of 2020.

Adjusted operating margin for the fourth quarter 2021 was 30% an improvement of 490 basis points compared to 25, 1% in the fourth quarter of 2020.

Speaker 1: Adjusted operating margin for the fourth quarter of 2021 was 30%, an improvement of 490 basis points compared to 25.1% in the fourth quarter of 2020.

Adjusted operating income for the full year of 2021 was $215 2 million, an increase of $117 1 million or 119% compared to 2020.

Speaker 1: Adjusted operating income for the full year 2021 was $215.2 million, an increase of $117.1 million or 119% compared to 2020.

Adjusted operating margin for full year 2021 finished at 32, 1% an increase of 530 basis points compared to 26, 8% for 2020.

Speaker 1: Adjusted operating margin for full year 2021 finished at 32.1%, an increase of 530 basis points compared to 26.8% for 2020.

Speaker 1: Adjusted operating profit and margin increases are indicative of the impact of strong volume leverage on our overall business, more than offsetting expansion investment.

Adjusted operating profit and margin increases are indicative of the impact of strong volume leverage on our overall business more than.

Setting expansion investments.

Adjusted net income for the fourth quarter of 2021 was $46 9 million, an increase of $18 3 million or 64% compared to the 2020 quarter.

Speaker 1: Adjusted net income for the fourth quarter of 2021 was $46.9 million, an increase of $18.3 million, or 64%, compared to the 2020 quarter.

Speaker 1: Adjusted net income for full year 2021 was $175.3 million, an increase of $86.2 million or 97% compared to 2020.

Adjusted net income for full year, 2021 was $175 3 million, an increase of $86 2 million or <unk>, 97% compared to 2020.

Adjusted EPS for the fourth quarter of 2021 increased by 81 cents per fully diluted share an increase of 29 cents or 56% compared to 52 cents in the 2020 period.

Speaker 1: Adjusted EPS for the fourth quarter of 2021 increased by $0.81 per fully diluted share, an increase of $0.29 or 56% compared to $0.52 in the 2020 period.

Adjusted fully diluted EPS for the full year 2021 finished at $3 six and.

Speaker 1: Adjusted fully diluted EPS for the full year 2021 finished at $3.06, an increase of $1.41, or 85%, compared to $1.65 in the 2020 full year period.

An increase of $1 41, or 85% compared to $1 65, and the 2020 full year period.

Speaker 1: Our cash and cash equivalents, which are GAAP metrics, totaled $603.8 million at December 31, 2021, including the impact on cash from our fourth quarter BioFlex solutions acquisition and related deal expenses. We'll now.

Our cash and cash equivalents, which are GAAP metrics totaled $603 8 million at December 31, 2021, including the impact on cash from our fourth quarter <unk> solutions acquisition and related deal expenses.

I will now transition to our 2022 full year guidance.

Speaker 1: Our GAAP to non-GAAP reconciliations for our 2022 financial guidance are included in the reconciliation tables in today's earnings press release. As previously mentioned, unless otherwise noted, all 2022 financial guidance discussed will be non-GAAP .

Our GAAP to non-GAAP reconciliations for our 2022 financial guidance are included in the reconciliation tables in today's earnings press release as previously mentioned unless otherwise noted all 2022 financial guidance discussed will be non-GAAP .

Speaker 1: Please also keep in mind that our 2022 guidance may be impacted by fluctuations in foreign exchange rates beyond our current projection of a 2% headwind on full year sales.

Please also keep in mind that our 2022 guidance may be impacted by fluctuations in foreign exchange rates beyond our current projection of a 2% headwind on full year sales.

And does not include.

Speaker 1: the potential impact of any future acquisitions that the company may pursue.

The potential impact of any future acquisitions that the company may pursue.

Speaker 1: Based on the strength we are seeing in the bioprocessing market and the expanded capacity that we've created in our business.

Based on the strength, we're seeing in the bioprocess <unk> market and the expanded capacity that we've created in our business and inclusive of the impacts of polymer appetite and <unk> solutions acquisitions that we closed in 2021, we are setting our 2022 full year revenue guidance a GAAP metric.

Speaker 1: and inclusive of the impacts of PolyMEM, Avatide, and BioFlex Solutions acquisitions that we closed in 2021. We are setting our 2022 full-year revenue guidance, a gap metric, at $800 to $830 million, representing reported growth in the range of 19% to 24% and organic growth of 18% to 22%.

At $800 million to $830 million, representing reported growth in the range of 19% to 24% and organic growth of 18% to 22%.

Yeah.

Speaker 1: This revenue guidance includes base business revenue of $578 to $587 million, growing at 20% to 22% COVID revenue of $200 to $220 million, growing at 5% to 16% and 2021 non-organic acquisition-related revenue of $22 to $23 million.

This revenue guidance includes base business revenue of $578 million to $587 million growing at 20% to 22% Covid revenue of $200 million to $220 million growing at 5% to 16% in 2021 Nonorganic acquisition related revenue of 22 to 23.

$3 million.

Speaker 1: We are setting our 2022 Adjusted Gross Margin Guidance at 57 to 58 percent.

We are setting our 2022 adjusted gross margin guidance at 57% to 58%.

Speaker 1: We expect adjusted operating income to be in the range of $234 to $240 million, with adjusted operating margins in the range of 28.5 to 29.5% of revenue for the year.

We expect adjusted operating income to be in the range of $234 million to $240 million with adjusted operating margins in the range of $28 five to 29, 5% of revenue for the year.

Adjusted other income and expense is expected to be zero for the year.

Speaker 1: Adjusted other income and expense is expected to be zero for the year.

We expect 2022 adjusted income tax expense to be approximately 21% of adjusted pre tax income for the year.

Speaker 1: We expect 2022 adjusted income tax expense to be approximately 21% of adjusted pre-tax income for the year.

We are setting adjusted net income guidance in the range of $185 million to $190 million and adjusted EPS EPS guidance in the range of $3 21 to $3 30 per fully diluted share.

Speaker 1: We are setting Adjusted Net Income Guidance in the range of $185 to $190 million, and Adjusted EPS Guidance in the range of $3.21 to $3.30 per fully diluted share.

Our adjusted EPS guidance reflects an estimated 57 6 million weighted average fully diluted shares outstanding at year end 2022.

Speaker 1: Our adjusted EPS guidance reflects an estimated 57.6 million weighted average fully diluted shares outstanding at year-end 2022.

Yeah.

Adjusted EBITDA is expected in the range of 265 to 271 million with depreciation and intangible amortization expenses expected to be approximately $33 million and $26 3 million respectively.

Speaker 1: Adjusted EBITDA is expected in the range of $265 million to $271 million with depreciation and intangible amortization expenses expected to be approximately $30.3 million and $26.3 million respectively.

Yeah.

Speaker 1: The company expects to invest $60 to $70 million into capital expenditures in 2022.

The company expects to invest $60 million to $70 million into capital expenditures in 2022.

We expect year end cash and cash equivalents, a GAAP metric to be in the range of $660 million to $680 million with our capex investments being fully funded by cash generation from our operations.

Speaker 1: We expect year-end cash and cash equivalents, the GAAP metric, to be in the range of $660 to $680 million, with our CapEx investments being fully funded by cash generation from our operations.

Yes.

Speaker 1: This completes our financial report and guidance update, and I will now turn the call back to the operator to open the lines for questions.

This completes our financial report and guidance update and I will now turn the call back to the operator to open the lines for questions.

Speaker 3: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key.

Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you were using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two once again, we please ask that you limit yourself.

Speaker 3: To withdraw your question, please press star then two. Once again, we please ask that you limit yourself to two questions.

Two questions at this time, we will pause momentarily to assemble our roster.

Speaker 3: At this time, we will pause momentarily to assemble our ruff.

Speaker 3: And the first question will come from Dan Arias with Stifel. Please go ahead.

And the first question will come from Dan <unk>.

Rice with Stifel. Please go ahead.

Good morning, guys. Thanks for the questions Tony on filtration, obviously that that franchise is doing quite well can you just sort of put some color to your outlook for 25% to 30% just thinking about the.

Speaker 4: Morning, guys. Thanks for the questions. Tony on filtration. Obviously that that franchise is doing quite well. Can you just sort of put some color to your outlook for 25 to 30% just thinking about the, you know, the fact that obviously the comp is very difficult.

The fact that obviously the comp is very difficult.

Speaker 4: but the market dynamics that got you to 100% growth are still looking pretty in place. So maybe just touch on some of the things that you think are the linchpins that sort of determine where that business lands in terms of growth. And then is filtration one of the areas where you think you might be able to take some share? You made a comment about potential gains there.

But the market dynamics that got you to 100% growth are still looking pretty in place. So maybe just touch on some of the things that you think are the linchpin.

Sort of determine where that business land in terms of growth and then as filtration and one of the areas, where you think you might be able to take.

Take some share you made a comment about potential gains there.

Yeah, so the projected growth for filtration, Don is 25% to 35%.

Speaker 3: Yeah, so, you know, the projected growth for filtration down is 25 to 35%. In here, in

In here in 2022.

Speaker 3: Outside the COVID component, when you look at the base filtration business.

Outside the Covid component when you look at the base filtration business.

Speaker 3: I think we're seeing real traction with our flat sheet cassette business. We're seeing real traction with ATF. You know, as maybe noted, we got into a number of commercial wins in the last three, four months of the year, which is a very positive indication. So I think when you think about our filtration franchise, we've had

I think where we're seeing real traction with our flat sheet cassette business, we're seeing real traction with ATF.

As maybe noted we got into a number of commercial wins in the last three four months of the year, which is a very positive indication. So I think when you think of our filtration franchise. We've had I would say over the last three or four years, a lot of clinical success and now its beginning to move into the commercial side.

Speaker 3: I would say over the last three or four years, a lot of clinical success and now it's beginning to move into the commercial side.

Speaker 3: So, yeah, look, we think 25 to 35 percent is a good number. As we move through the year, we'll probably be able to see if we revise that up in any way, shape, or form.

So yeah look we think 25% to 35% is a is a good number.

As we move through the year, we'll probably be able to see if we revise that up in any way shape or form, but I think it's to maybe reiterate it's our ATF portfolio, it's our flat sheet cassette and that's our systems, we're really happy with the way our systems business has filled out and we talked a little bit down about the R&D.

Speaker 3: But I think to maybe reiterate, it's our ATF portfolio, it's our flat sheet cassette, and it's our system.

Speaker 3: we're really happy with the way our systems business has filled out and we talked a little bit about the R&D

Speaker 3: element of last year, but we launched 11 products last year, so I think many of them into the filtration portfolio, so I think that just gives us a lot of additional fuel as we go through 2022.

Element of last year, when we launched 11 products last year. So I think many of them into the filtration portfolio. So I think that just gives us a lot of.

Additional appeal.

As we go through 2022.

Speaker 4: Okay. And then maybe just, you know, that probably leads into this question or this line of thinking here, just on cell and gene therapy, you know, the growth you're seeing there is obviously coming from new customers and existing accounts.

Okay, and then maybe just.

Leads into this question or this.

Your line of thinking here, just on cell and gene therapy.

The growth Youre seeing there is obviously coming from new customers and existing accounts.

Speaker 4: I suppose it's a hard question to answer, but are you able to sort of put some thought to those two buckets if you just think about the existing body of work and how that scales up from an earlier stage to a later stage, and then what you might see in terms of just acquiring new customers in 2022, because it does feel like your momentum there is pretty good.

Bose, it's a hard question to answer but are you able to sort of put some thought to those two buckets. If you just think about.

The existing body of work and how that scales up from an earlier stage to a later stage and then what you might see in terms of just acquiring new customers in 2022, because it does it does feel like your momentum there is pretty good.

Yes, maybe start with the new customers I mean, our expectation is we'll continue to add at a similar pace in 2022 as we did in 2021, I mean, our portfolio of <unk>.

Speaker 3: Yes, maybe start with the new customers. I mean, our expectation is we'll continue to add a similar pace in 2022 as we did in 2021. I mean, our portfolio of products has expanded, so there's no reason why we can't move at a similar pace. I think what the industry needs more, so there's two things happening in the industry that we see. One is there's a lot more scale-up going on, which is really encouraging, but we also need to see more of the late-stage opportunities getting through too.

Products has expanded so there's no reason why we can't move at a similar pace I think what the industry needs more of that so there's two things happening in the industry that we see one is theres a lot more scale up going on which is really encouraging but we also need to see you know more of the late stage opportunities getting through to.

Speaker 3: uh... final final approval so i think that's kind of the uh...

Final final approval, so I think thats kind of the.

Speaker 3: That's kind of the last litmus test is to see more approvals because I think with more approvals becomes

That's kind of the last litmus test is to see more approvals because I think with more approvals becomes comes with more momentum in that clinical pipeline, but yeah. We're you know we look at the first half of last year versus the second half we saw a real uptick in our cell and gene therapy business in the second half of the year.

Speaker 3: comes with more momentum in that clinical pipeline. But yeah, we look at the first half of last year versus the second half. We saw a real uptick in our cell and gene therapy business in the second half of the year.

Just to finish the thought Tony is there any we get a lot of questions about the you know the.

Speaker 4: Just to finish the thought, Tony, is there any, we get a lot of questions about the, you know, the big picture things that are taking place in this L and G market just in terms of companies working through safety and efficacy issues, etc. Has any of that showed up in your business when you look at your order book or in a way that, you know, we would be able to tell, or is it pretty smooth sailing at a high level because one company might be dealing with something, but overall the industry's in good shape?

The Big picture things that are taking place in the LNG market just in terms of companies working through safety and efficacy.

Issues et cetera has any of that showed up in your business. When you look at your order book or in a way that we would be able to tell or is it pretty smooth sailing at a high level, because one company might be dealing with something but overall the industry is in good shape.

Yes, I think overall the industry is in good shape I think the earlier comments about seeing more approvals is actually really important you look at we look at our order book really robust coming into 2022, we have seen no slowdown on the cell and gene therapy side.

Speaker 3: I think overall the industry is in good shape. I think the earlier comment about, you know, seeing more approvals is actually really important. We look at our order book really robust coming into 2022. We have seen no slowdown on the cell and gene therapy side.

Okay. Thanks, a bunch.

Speaker 1: Thank you and the next question will come from Jacob Johnson with Stevens. Please go ahead. Uh, hey, good morning everybody. Um, Tony, maybe just

Thank you and the next question will come from Jacob Johnson with Stephens. Please go ahead.

Hey, good morning, everybody.

Maybe just add.

To follow up on something you mentioned during your prepared comments.

Your hands went from $3 7 billion.

Speaker 5: eight plus now billion, so more than double. Can you just expand on your comments on what drove that increase and maybe flush out how much of that's COVID-based business, maybe things like that?

Okay.

Now $1 billion, so more than double can you just expand on your comments on what drove that increase and maybe flesh out how much of that is COVID-19 base business, maybe things like cell and gene therapy.

Yes, so on the Tam.

Speaker 3: Yeah, so on the TAM, clearly the impact of COVID has increased the TAM for our whole industry. Probably 80%, I would say. It didn't quite double our TAM, but probably added probably $3 billion onto the TAM. Everything else came from the businesses we've jumped into, the acquisitions that we've done, the expanded markets.

Really the <unk>.

Impact of Covid is increase the Tam for for our whole industry.

Probably.

80% I would say.

It didn't quite double our Tam, but probably added probably three 3 billion onto the Tam everything else came from.

The businesses, we have jumped into the acquisitions that we've done the expanded markets that we have now when you keep adding new products at the rate. We've added the man and again I'll just kind of reiterate 11 products launched last year.

Speaker 3: that we have now. You know when you keep adding new products at the rate we've added them in, and again I'll just kind of reiterate, 11 products launched last year.

Speaker 3: That just opens up additional parts of filtration or chromatography. And just this week, you know, launching now affinity resins into cell and gene therapy. That opens up again more of a market for us.

That just opens up additional parts of filtration, our chromatography and just this week launching now.

A D resins into cell and gene therapy that opens up again.

More of a market for us.

Speaker 3: So I would say $3 billion is probably COVID, everything else is M&A, expanded markets.

So I would say $3 billion is probably COVID-19 everything else is M&A expanded markets.

Speaker 5: Got it. That's super helpful. And then maybe as a follow-up, kind of sticking with higher level question, you know, I appreciate the $1 billion 2024 kind of revenue target and how you guys think about the long-term growth profile of the business, but something I've been asked recently is just on the margin side, how should investors think about the long-term margin opportunity at Repligen? You know, maybe if you get to a billion in revenues, you know, what should your margin profile look like?

Got it.

Helpful. And then maybe as a follow up kind of sticking with higher level question.

Yes, I appreciate the the $1 billion 2024 kind of revenue target and how you guys think about that the long term growth profile of the business.

I've been asked recently just on the margin side.

Should investors think about the long term margin opportunity at Rattler, Jim maybe if you get to $1 billion of revenues.

Your margin profile look like at that level.

Yeah. Jacob this is John here, so we looked at our margins this year and sensor, saying when we look across the industry. It's a very similar story, who to what a lot of our peers are saying right now.

Speaker 1: Yeah, Jacob, this is John here. So, you know, we look at our margins this year. And it's interesting when we look across the industry, it's a very similar story to what a lot of our peers are saying right now. You know, as we finished the year, our investments started to catch up to to the revenue levels that we've that we've had. And again, very consistent story across the board.

As we finished the year our investments started to catch up to the revenue levels that we've that we've had and again very consistent story across the board really pleased with the way we've been able to expand our gross and operating margins as a matter of fact operating margins were up over.

Speaker 1: Really pleased with the way we've been able to expand our gross and operating margins.

Speaker 1: As a matter of fact, you know, operating margins were up over, you know, up at 530 basis points this year, and I think about 1180 basis points over the last three years. So it's been a really great growth story. We guided down a little bit for 2022 as we continue to invest in the business to make sure that we're well positioned long term here to take advantage of the market opportunities that are out there.

Up up a 530 basis points this year and I think about 1100 80 basis points over the last three years. So that's been a really great growth story, we guided down a little bit for 2022, as we continue to invest in the business to make sure that we're well positioned long term here to take advantage of the market opportunities that are out there I think if you look at us.

Speaker 1: I think if you look at us, you know, at the billion-dollar level.

At the at the $1 billion level, we will continue to keep the targets out there that we have today, which will continue to be.

Speaker 1: We will continue to keep the targets out there that we have today, which will continue to be trying to get above 60% on the gross margin level. I think that's a good aspirational level for us.

Trying to get above 60% on the on the gross margin level I think that's a good aspirational level for us and then on the on the operating margins will obviously want to continue to be.

Speaker 1: And then on the operating margins, we'll obviously want to continue to be above 30% on those as well. So I think we have a good opportunity to get there, but right now, we're really in an investment phase, capacity expansion phase, as well as really continuing to build up our R&D team, our commercial teams, our administrative infrastructure, and everything else to support sort of billion dollar business and above as we go forward.

Above 30, 30, 30% on those as well so I think we have a good opportunity to get there, but right now we're really in an investment phase capacity expansion phase.

As well as really continuing to build up our R&D team, our commercial teams, our administrative infrastructure and everything else to support it.

<unk>, a $1 billion business and above as we go forward.

Perfect. Thanks for that John .

And the next question will come from Julia Qin with J P. Morgan. Please go ahead.

Speaker 6: And the next question will come from Julia Kin with J.P. Morgan. Please go ahead.

Hi, good morning, I'll start with a high level that dropped off Jan any many investors are concerned about biotech funding by them and in light of recent market volatility and some of them like CRM companies have cut out a meaningful slowdown in orders.

Speaker 7: Hi, good morning. I'll start with a high-level backdrop question. I mean, many investors are concerned about biotech funding environment in light of recent market volatilities. And some, like CRO companies, have caught out a meaningful slowdown in orders earlier this week.

This week I was just wondering if youre seeing any impact regarding your pipeline of course, we understand that real quick Jim White downstream. So the impact is probably more on early stage research and development stage, but if you could just talk about your customer quoting activity more recently and why do I find out that'd be great.

Speaker 7: wondering if you're seeing any impact regarding your pipeline. Of course, we understand that recogency is more downstream, so the impact is probably more on early stage research than on development stage. But if you could just talk about your customer coding activities more recently in the order funnel, that'd be great.

Yeah, I would agree with you Julia that the impact is more on the research side than it is on the on the bio processing side.

Speaker 3: Yeah, I would agree with you, Julia, that the impact is more on the research side than it is on the bioprocessing side. If we look at our orders in last year, if you take COVID aside and look at base business orders, they were sequentially up every quarter. We look at our orders as we've gone through the initial

If we look at our orders in.

Last year have you take COVID-19 aside and look at the base business orders they were sequentially up every quarter.

We look at our orders as we've gone through the initial.

First half of this quarter again.

Speaker 3: first half of this quarter, again, been very solid. So we're not seeing as of today any impact from that, but obviously we'll go through the year and see what happens. But our guidance is based on everything we see today and I think there's definitely some confidence around our $800 million to $830 million.

<unk> seen very solid so we're not seeing as of today any impact from that but obviously, we will go through the year and see what see what happens but our.

Our guidance is based on everything we see today and I think there's definitely some confidence around our $800 million to $830 million and the pipelines look exceptional right the clinical pipelines and new product development pipelines across gene therapy across maps.

Speaker 1: And the pipelines look exceptional, right? The clinical pipelines and new product development pipelines across gene therapy, across MAVs.

Most areas of our business.

Okay, and then in terms of England.

Speaker 7: That's great. And then in terms of inventory levels in the channel, your peer cut out about 5% tailwind from customer inventory building in each of the past two years, and they expect that to reverse this year. So I'm just curious if this is in line with what you've seen, and is that what you've contemplated in your guidance as well?

Inventory levels in the channel your peer cat out about five percentage tailwind from.

Customer inventory building in each of the past two years and they expect that to reverse this year. So I'm. Just curious if this is in line with what you've seen and is that what you've contemplated in your guidance as well.

Yeah, I think where everyone and by a processing is witnessing similar trends. So I think that's it feels like a pretty reasonable amount of.

Speaker 3: Yeah, I think everyone in bioprocessing is witnessing similar trends, so I think it feels like a pretty reasonable amount of us assigned to inventory build and we'll see as we go through the year what customers do from an inventory point of view. For sure, last year there was a buildup in inventory as people were worried about being able to get product. I don't think the...

Assigned to inventory build.

And you know, we'll see as we go through the year.

What customers do from an inventory point of view for sure last year. There was a there was a buildup in inventory as people were worried about being able to get product I don't think the.

Speaker 3: the concern about product availability has disappeared. So I think that, you know, inventory, say...

The concerned about product availability has has disappeared. So I think that you know.

Inventoried.

Same.

Speaker 3: slowing down on inventory build is probably, for us, I don't think it's gonna happen really until the second half of this year.

Slowing down on the inventory build is probably for us I don't think it's going to happen really until the second half of this year.

Got it thank you.

Speaker 6: Thank you. And the next question will come from Paul Knight with KeyBank. Please go ahead.

Thank you and the next question will come from Paul Knight with Keybanc. Please go ahead.

Speaker 4: Tony, I think you mentioned the overall product lines in capacity expansions of 3 to 9x. What's the overall cap of capacity for the entire firm? Is it in between that, like 4x, or could you comment on that? And then the second question is, on cell and gene therapy, is a flat sheet your big...

Tony I think <unk>.

Mentioned, the overall product lines and capacity expansions of three to nine ex what's the overall.

Have a capacity for the entire firm is it in between that like Forex or could you comment on that and then the second question is on <unk>.

<unk> gene therapy.

Is the flat sheet your biggest.

Speaker 4: you know, driver and differentiator.

No.

Driver and differentiator.

Speaker 3: Yeah, so on the capacity, we probably haven't calculated exactly what the average capacity has been increased was last year because every product line was a little different. But I think your guesstimate is probably accurate. It's probably around 4x.

Yes, so on the capacity we have.

We haven't calculated exactly what the average capacity has been.

Increase was last year, because every product line was a little different but yes.

Thank you.

The estimate is probably accurate probably around forex.

Speaker 3: For us, though, there were some key product lines that we really needed to build up capacity given the COVID demand. I think Curly HoloFibers was the one that we highlighted with the nine-fold increase.

For us, though there were some key product lines that we really needed to build up capacity given the COVID-19 demand I think fairly hollow fibers was the one that we highlighted with the nine fold increase.

Yeah, what was interesting about last year is a lot of our capacity increases came from addition of people and being more efficient in some physical capacity space being added this year.

Speaker 3: What was interesting about last year is a lot of our capacity increases came from addition of people and being more efficient and some physical capacity space being added. This year

Speaker 3: It's more about adding in that fiscal capacity space which I think will set us up for the next three to five years and really drive our lead times down significantly versus

It's more about adding in that fiscal capacity space, which I think will set us up for the next three to five years.

And really drive our lead times down significantly versus what you might've seen in the past. So I think that's really a positive sign for us and it's no different than what our peers are doing as well everybody is is on the same journey on.

Speaker 3: what you might have seen in the past. So I think that's really a positive sign for us and it's no different than what our peers are doing as well. Everybody is on the same journey.

Speaker 3: On the cell and gene therapy side, I don't think I would call FlatSheet out as the primary driver for us or differentiator. I would say, you know, when you look at our portfolio of products,

The cell and gene therapy side, I don't think I would call it flat sheet out as the primary driver for us our differentiator.

I would say when you look at our portfolio of products.

Speaker 3: Obviously, filtration, there's a large number of highly differentiated products in our filtration portfolio. So I would say that the major driver of growth...

Obviously filtration theres, a large number of highly differentiated products and our filtration portfolio. So I would say that the major driver of growth in cell and gene therapy is our combined filtration portfolio not any one individual product and what's nice about the rest of the portfolio.

Speaker 3: in cell and gene therapy is our combined filtration portfolio, not any one individual product. And what's nice about the rest of the portfolio

<unk> is we've got some really nice traction with our opus pre packed columns and we've got some really nice traction with our flow and solo V. P technologies in cell and gene therapy. So those franchises because they just don't have the same number of products as filtration will always naturally have a law.

Speaker 3: We've got some really nice traction with our Opus Pre-PAC columns, and we've got some really nice traction with our Flow and Solo VPE technologies in cell and gene therapy. So those franchises, because they just don't have the same number of products as filtration, will always naturally have a lower percent impact on gene therapy than what you might get with filtration.

Sure.

Per cent impact on.

On gene therapy than what you might get what filtration.

Okay. Thanks.

Thank you and the next question will come from Matt Hewitt with Craig Hallum Capital Group. Please go ahead.

Speaker 6: Thank you. And the next question will come from Matt Hewitt with Craig Hallam Capital Group. Please go ahead.

Speaker 8: Good morning and thank you for taking the questions. I realize it's very early days, but the recently launched new resin products for AAV manufacturing. What has been the initial response that you've heard from customers and how quickly do you think you could start to see some of those hitting the order book?

Good morning, and thank you for taking the questions.

I realize it's very early days, but the.

Our recently launched new resin products for AAV AAV manufacturing.

It's been the initial response that you've heard from customers and how quickly do you think you could start to see some of those hitting the order book.

Yes, Theres no.

Speaker 3: Yeah, there's no magic bullet unfortunately when it comes to chromatography resins. It's a process that anyone in the industry that's launched products into this space know quite well. This year, 2022, is all about seeding.

There's no magic bullet. Unfortunately, when it comes to chromatography resins, it's a it's a process that anyone in the industry. That's launched products into this space know quite well it takes.

This year 2022 is all about seeding the good news matters in your question.

Speaker 3: The good news, Matt, and your question, the response has been very positive. There's lots and lots of customers that want to evaluate the resins.

The response has been very positive with lots and lots of customers that want to evaluate the resins, yes, they are differentiated versus the.

Speaker 3: They are differentiated versus the incumbents that are in the marketplace today and we focused really on improved cost-fixed stability, which allows customers to run the residence a lot more cyclically.

The incumbents that are in the marketplace today, and we focused really on improved caustic stability, which allows customers to run the resins are lot more cycles and you hold onto that capacity for on the chromatography columns a lot longer with the.

Speaker 3: and you hold on to that capacity on the chromatography column a lot longer with the products that we've launched. So I'd expect this year it's a lot of seeding and then next year you start to see opportunities where we get into phase 1, phase 2, maybe even later stage, later phase 3.

The products that we've launched so I would expect this year. It's a lot of seating and then next year, you'll start to see you know opportunities, where we get into phase one phase two maybe even later stage laser phase.

Programs as well so.

Speaker 3: programs as well. So we just want to get off to the right start. I think it's incredibly encouraging for me as the leader of Repligen that five months after we did the Avatide acquisition that we have these three products launched. We said we would do it. We've executed on it.

We just want to get off to the right start I think it's incredibly encouraging for me as the leader in Rutledge in debt five months. After we did the appetite acquisition that we have these three products launch we said we would do it we've executed on it I think my comments about R&D I just want to make sure people really see it we are really executing at a very high level within our.

Speaker 3: My comments about R&D, I just want to make sure people really see it. We are really executing at a very high level within our R&D teams right now. We're getting products launched. We're hitting our timelines, and that's just going to help us on our journey towards a billion in the next few years.

Our R&D teams right now we're getting products launched we're hitting our timelines and that's just going to help us on our journey towards $1 billion in the next few years.

That's great and then maybe separately or in a different line.

Speaker 8: That's great and then maybe separately or in a different line, cell and gene therapy, you've mentioned it a number of times, it's obviously going to be a key growth driver for you going forward.

Cell and gene therapy, you've mentioned in a number of times, it's obviously going to be a key growth driver for you going forward.

Speaker 8: Where would you characterize those products today, the ones where you are actively involved? Are those still early clinical stage opportunities or are you starting to see those shift into the commercial realm and what will that mean from an increase in revenues for you as those do become more commercial based? Thank you.

Where would you characterize those products today the ones, where you are actively involved or are those still.

Early clinical stage opportunities or are you starting to see those shift into the commercial realm, and what will that mean from an increase.

And in revenues for you as those do become more commercial based thank you.

Yes, I would say that the majority of our opportunities today or in the clinical.

Speaker 3: Yeah, I would say that the majority of our opportunities today are in the clinical. Clearly, the customers we've been working with for the last four years, some have scaled and moved it into the later stage clinical trials.

Clearly the customers we've been working with for the last four years have some have scaled and moved it into the later stage clinical trials.

As I said.

Speaker 3: When we were chatting with Dan earlier, we need to see more commercial wins.

One former China with Don earlier, we need to see more.

Commercial wins.

Speaker 3: I think that's not just for us, I just think for the industry. I think the more we see approvals, the more momentum you have in that clinical pipeline. So that's really what we all should be looking for.

That's not just for us I, just think for the industry I think the more we see approvals to more of a momentum you have.

And that clinical pipeline. So that's really what we all should be looking for is the increased number of approvals and that will drive volume it will drive.

Speaker 3: the increased number of approvals and that will drive volume. It will drive a lot of the clinical programs that are currently ongoing. So hard to put a number on it, but obviously if you're in a commercial process, it's very consistent revenue versus

A lot of the clinical programs that are currently ongoing.

Hard to put a number on it but obviously if you're in a commercial process, it's very consistent revenue versus.

Speaker 3: If you're in clinical, you may see revenue. If you're in one clinical application, you see revenue this year but it could be 18 months before you see additional revenue.

And kind of call you may see revenue if you're in one clinical application you see revenue this year, but it could be.

<unk> seen months before you see additional revenue.

Got it alright, thank you.

The next question will be from Brandon <unk> with Jefferies. Please go ahead.

Speaker 6: The next question will be from Brandon Colgert with Jeffries. Please go ahead.

Speaker 4: Hey, thanks. Good morning. Um, Tony, if my math is right, it looks like your Asia pack business more than doubled last year. And I would assume that most of the COVID-19 vaccine contribution was mostly concentrated in the US And Europe . Uh, is that right? Uh, they're right assumption. First of all, we just elaborate come on the drivers of that. Maybe the size of your commercial team in Asia.

Hey, Thanks, good morning.

Tony If my math is right it looks like your Asia Pac business more than doubled last year and I would assume that most of the COVID-19 vaccine.

Contribution was mostly concentrated in the U S and Europe is that right. The right assumption first of all can you just elaborate come on the drivers of that maybe the size of your commercial team.

In Asia.

Yes, so maybe start with the commercial team.

Speaker 3: Yes, so maybe start with the commercial team. We've really increased our commercial organization over the last few years. I think we finished last year with almost 200 people between sales, field applications, field service. I think right now as we're

We've really increased our commercial organization over the last few years I think we finished last year with almost 200 people between sales field applications field service I think right now is where.

Speaker 3: By the time we finish up Q1, we're probably in that 225, 230. I don't have the exact number of sales people in Asia.

By the time, we finish up Q1, we're probably in that $2 25 to 30 I don't have the exact number of sales people in Asia I do know that in China. It's around we have probably 40 people on the team there.

Speaker 3: I do know that in China it's around, we have probably 40 people on the team there.

So.

Speaker 3: You know, I think the momentum in Asia has been just fantastic over the last few years.

I think the momentum in Asia has been just fantastic over the last few years.

Speaker 3: To your first question, the drivers of growth in Asia, I would say...

To your first question.

The drivers of growth in Asia, I would say.

Speaker 3: predominantly driven by our filtration portfolio.

Predominantly driven by our filtration portfolio.

We have some.

Speaker 3: you know, bigger accounts that use our prepack columns, but a lot of times in, you know, countries where labor is not as expensive as in, say, the U.S., people tend to want to pack their own columns. But the big companies

Bigger accounts that use our pre packed columns, but a lot of times in <unk>.

Countries, where labor is not as expensive as in say the U S people tend to want to pack their own columns, but the big companies that we all know.

Speaker 3: that we all know have definitely moved towards prepack columns. But I would say filtration is the main driver and there is a, you know, last year there was a significant contribution, Brandon, from COVID.

I have definitely moved towards Prepacked columns, but I would say filtration is the main driver.

There is a.

Last year, there was a significant contribution Brandon from Covid. So we have a number of.

Speaker 3: So we have a number of accounts in China, in Korea, and in India that have implemented or used our technology in COVID vaccine manufacturing. Remember the way the COVID vaccine

Accounts in China in Korea, and in in India that have implemented our used our technology and Covid vaccine manufacturing remember the way the COVID-19 vaccine.

Sort of manufacturing.

Speaker 3: sort of manufacturing played out last year. You have some core companies, but there was a lot of CDMOs that ended up signing on and doing the manufacturing. So think about our impact is, some of it is through customers in Asia that are making their own vaccine and others are through CDMOs.

Played out last year do you have some core companies, but there was a lot of <unk> that ended up signing on and and doing the manufacturing. So think about our impact is some of it is through customers in Asia that are making their own vaccine and others are true see demos.

Got you that's helpful.

Speaker 4: Gotcha, that's helpful. And then, just one for John . Any color direction you'd give us in terms of the phasing of margins in EPS in 22? And should we expect the vaccine revenues to be rateable at kind of 50 to 55 million a quarter?

Just one for John .

Color direction give us in terms of.

Raising our margins and EPS in 'twenty, two and should we expect the vaccine.

Revenues to be ratable kind of 50% to $55 million a quarter.

Yeah, I can I'll start with the first one in terms of the margin view and how that's gonna assays.

Speaker 1: Yeah, I can, I'll start with the first one in terms of the margin view and how that's going to phase. And then I'll hand off to Tony for the other question. But yeah, margins as we come out of this year, we're on an H2 run rate of about 57.3% on the gross margin level. And again, this is because obviously our investments are now catching up to the revenue level.

And then I'll hand, it off to Tony for the other question.

But yeah margins is as we come out of this year.

On the H two run rate of about 57, 3%.

On the gross margin level and again this just because obviously our investments are now catching up to us to the revenue levels.

Speaker 1: uh... that's a really good starting point coming into the year uh... interestingly though you know that's really right within the range of our full year so i'd say we expect to be fairly consistent throughout the year in that fifty seven to fifty eight percent level

That's a really good starting point coming into the year Interestingly, though that's really right within the range of our full year. So I'd say, we expect to be fairly consistent throughout the year and that 57% to 58% level.

Speaker 1: And then on operating margins, similar story. I mean, we finished the year at 30%. We've guided down a little bit because I'd say we got a faster jump in terms of capacity ads, as opposed to maybe infrastructure and commercial ads with the.

And then and then on the operating margins similar story I mean, we finished the year at 30%, we guided down a little bit because I'd say, we we got a faster jump in terms of capacity adds as opposed to maybe infrastructure and commercial ads with with the the <unk>.

Speaker 1: uh... the catch-up on uh... on volumes and such so uh... you know i would say we'd you know thirty percent uh... ended the year we're expecting to come in at twenty eight-and-a-half to twenty nine-and-a-half percent on operating margin uh... you know so i would die i would say you're gonna start in uh... but a fairly consistent level and uh... then you'll finish so should be reasonably consistent throughout the

<unk> up on on volumes and such so I.

I would say 30% ended the year, we're expecting to come in at 28, 5% to 29, 5% on operating margin.

So I would I would say youre going to start in.

At a fairly consistent level and then youll finish so should be reasonably consistent throughout the year.

Speaker 3: Yeah, and then, Brandon, on the COVID vaccine revenues, we expect that, I think Q4 was north of $60 million. We'd expect the first half of the year to be north of $60 million on a quarterly basis, and the second half might be a little lighter. So I'd say that $55-$45 type split is probably a pretty reasonable assumption.

And then Brandon on the.

On the Covid vaccine revenues, we expect that.

I think Q4 was north of $60 million, we'd expect the first half of the year.

To be north of $60 million on a quarterly basis in the second half might be a little lighter. So I'd say like that 50, 545 type split is probably pretty pretty reasonable assumption.

First off site.

Super Thank you.

Speaker 6: And once again, if you have a question, please press star, then 1. The next question will come from Ram Selvaraju with HC Wainwright. Please go ahead.

And once again, if you have a question. Please press Star then one.

The next question will come from Ron Silver.

<unk> <unk> with H C. Wainwright. Please go ahead.

Thanks, very much for taking my questions. Firstly I wanted to ask if you're a $1 billion plus.

Speaker 4: Thanks very much for taking my questions. Firstly, I wanted to ask if your $1 billion plus...

Speaker 4: revenue guidance for 2024, achieving that threshold by 2024, does take into account the possibility of reduced vaccine demand, reduced vaccine production, as the COVID-19 pandemic might shift to endemic status by that point, you know, if you could just maybe comment on the extent to which that number is essentially battle-proof, so to speak.

Revenue guidance for 2020 for achieving that threshold by 2024.

Does take into account the possibility.

<unk> reduced vaccine demand reduce vaccine production as the COVID-19 pandemic might shift to endemic status by that point.

You could just maybe comment on the extent to which that that number is essentially battle proof so to speak.

Speaker 3: Yeah, great question, Ram. When we look at our billion-dollar target, obviously, and we talked about this back in November with a number of analysts. So our model is about a 25% reduction in 2023 and 2024, and we still are confident that we can hit a billion dollars in 2024 even with that type of reduction. So we think there's a long tailwind on COVID. And so

Yeah, Great question around when we look at our billion dollar target.

Obviously.

And we've talked about this back in November with a with a number of analysts. So our model is about a 25% reduction in 2023 and 2024 and we still are confident that we can hit a $1 billion in 2024, even with that type of <unk>.

Production. So we think there's a long tailwind.

On Covid.

And so we've modeled just from from our perspective that.

Speaker 1: from our perspective, that type of drop, but we're still very confident we can get to a billion plus. It's 25% in 2023 and another 25% in 2024, just to be clear.

That type of drop.

But thats, we still are very confident we can we can get to 1 billion plus it's 25% in 'twenty three and another 25% in 2024 just to be clear.

Speaker 4: Great, and then on the gene therapy side, I was wondering if, you know, in a more capital-constrained environment, this is kind of building on, you know, questions that were asked earlier. Do you think that, for example, with the reusable resins, you would actually be able to take market share from your competitors from a bioprocessing perspective within gene therapy? And do you expect the bulk of the gene therapy demand to be driven by AAV products?

Great and then on the.

The gene therapy side I was wondering if you know in a more capital constrained environment does it kind of building on questions that were asked earlier.

Do you think that for example, with the reusable resins, you would actually be able to take market share from your competitors from a bio processing perspective within gene therapy, and do you expect the bulk of the gene therapy demand to be driven by a product.

Particularly in the context of how youre, new resin products can be used.

Speaker 4: particularly in the context of how your new resin products can be used.

Speaker 3: Yeah, I mean, you know, when we when we launched, and obviously, we just did it the other day, we launched three resins for a V against, you know, the more dominant a V.

Yeah, I mean, you know when we when we launched and obviously, we just did it the other day, we launched three resins for AAV against.

The more dominant.

AAV types that are out there.

Speaker 1: So obviously we have no market share, so we would hope to take some market share over the next couple of years. We think, you know, it was important for us when we launched the product that the products would be differentiated, clearly differentiated versus the competition.

Obviously, we have no market share. So we would hope to take some market share over the next couple of years. We think it was important for us when we launched the product the products would be differentiated attorney differentiated versus the competition.

Speaker 3: But it's going to take time, Ram, it's not going to happen overnight.

But it's going to take time, Brian , but it's not it's not going to happen overnight. So yeah. Our expectation is we will take market share. It will take a couple of years to really build up our portfolio.

Speaker 1: So yeah, our expectation is we'll take market share, it'll take a couple of years to really build up our portfolio. Right now AAV is the dominant gene therapy.

Now AAV is the dominant.

Gene therapy.

One factor there are other factors and obviously, we'll continue to look at that and decide what other affinity resins will bring to market.

Speaker 1: vector. There are other vectors and obviously we'll continue to look at that and decide what other affinity resins we'll bring to market for the next one to two years, but expect to see more affinity resins coming from Replogen in the next one to two years.

The next one to two years, but expect to see more affinity resins coming from proposition.

And the next one to two years.

Thank you.

Okay.

Speaker 6: Thank you. And ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to Tony Hunt for any closing remarks.

Thank you and ladies and gentlemen. This concludes our question and answer session I would like to turn the conference back over to Tony Hunt for any closing remarks.

Speaker 1: I'd just like to thank everybody for joining us this morning, look forward to catching up with everybody again in May, which is not too far away. So thanks again and we'll chat later.

Just like to thank everybody for joining us this morning, and look forward to catching up with everybody again in may which is not too far away. So thanks again and.

Well chat later.

And thank you Sir the conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Speaker 6: And thank you, sir, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Okay.

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