Q1 2025 Repligen Corp Earnings Call

April 29, 2025

Operator: Good day, ladies and gentlemen, and welcome to Repligen Corporation's first quarter of 2025 earnings conference call. My name is Dovan, and I will be your coordinator. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. Please note that there will be a question-and-answer session following the company's formal remarks. The company would like to note that there will be a limited time frame for Q&A, and as such, management kindly requests that each individual asks one question to try to accommodate all. I would like to turn the call over to your host for today's call, Jacob Johnson, Vice President of Investor Relations for Repligen.

Good day, ladies and gentlemen, and welcome to replicate Corporation's first quarter of 2025 earnings Conference call.

Devin: My name is Devin and that would be your coordinator.

All participants will be in the listen only mode.

Devin: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Devin: Please note that there will be a question and answer session. Following the companys formal remarks.

Devin: The company would like to note that there will be a limited timeframe for Q N D and that's such management kindly request that each individual asked one question to try to accommodate all of them.

Speaker Change: I would like to turn the call over to your host for today's call Jacob Johnson, Vice President of Investor Relations for repetition.

Rachel Vatnsdal: Thank you, Operator, and welcome to our Q1 2025 report. On this call, we will cover business highlights and financial performance for the three-month period ending 31 March 2025, and will provide financial guidance for the full year 2025. Joining us on the call today are Repligen's President and Chief Executive Officer Olivier Loeillot and our Chief Financial Officer Jason Garland. 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 risk and uncertainties that may cause actual events or results to differ.

Jacob Johnson: Thank you, Operator, and welcome to our Q1 2025 report. On this call, we will cover business highlights and financial performance for the three-month period ending 31 March 2025, and will provide financial guidance for the full year 2025. Joining us on the call today are Repligen's President and Chief Executive Officer Olivier Loeillot and our Chief Financial Officer Jason Garland. 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 risk and uncertainties that may cause actual events or results to differ.

Speaker Change: Thank you operator, and welcome to our first quarter of 2025 report on this call. We will cover business highlights and financial performance for the three months period, ending March 31, 2025, it will provide financial guidance for the full year 2020.

Olivier: Joining us on the call today are <unk>, President and Chief Executive Officer, Olivier and Blue Yellow and our Chief Financial Officer, Jason Garland.

Olivier: 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.

Rachel Vatnsdal: Additional information concerning the risk related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K for the year ended 31 December 2024, and our current reports, including the Form 8-K that we are filing today and other filings that we make with the Securities and Exchange Commission. 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. During this call, we are providing non-GAAP financial results and guidance unless otherwise noted. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted on Repligen's website and on sec.gov.

Jacob Johnson: Additional information concerning the risk related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K for the year ended 31 December 2024, and our current reports, including the Form 8-K that we are filing today and other filings that we make with the Securities and Exchange Commission. 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. During this call, we are providing non-GAAP financial results and guidance unless otherwise noted. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted on Repligen's website and on sec.gov.

Olivier: Additional information concerning the risks related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K for the year ended December 31, 2024, and our current reports, including the form 8-K that we're filing today and other filings, we make with the Securities and Exchange Commission.

Olivier: 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.

Olivier: During this call we are providing non-GAAP financial results and guidance unless otherwise noted.

Olivier: Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted on <unk> website and on SEC Gov.

Rachel Vatnsdal: Adjusted non-GAAP figures in today's report include the following: non-COVID and organic revenue and/or revenue growth, cost of goods sold, gross profit and gross margin, operating expenses including R&D and SG&A, income from operations and operating margin, tax rate on pre-tax income, net income, diluted earnings per share, EBITDA, adjusted EBITDA, and adjusted EBITDA margins. These adjusted financial measures should not be viewed as an alternative to GAAP measures but are intended to best reflect the performance of our ongoing operations. Now I'll turn the call over to Olivier.

Jacob Johnson: Adjusted non-GAAP figures in today's report include the following: non-COVID and organic revenue and/or revenue growth, cost of goods sold, gross profit and gross margin, operating expenses including R&D and SG&A, income from operations and operating margin, tax rate on pre-tax income, net income, diluted earnings per share, EBITDA, adjusted EBITDA, and adjusted EBITDA margins. These adjusted financial measures should not be viewed as an alternative to GAAP measures but are intended to best reflect the performance of our ongoing operations. Now I'll turn the call over to Olivier.

Olivier: Adjusted non-GAAP figures in today's report include the following.

Olivier: On Covid inorganic revenue into our revenue growth cost of goods sold gross profit and gross margin.

Olivier: <unk> expenses, including R&D, and SG&A income from operations and operating margin.

Olivier: Tax rate on pre tax income net income diluted earnings per share EBITDA.

Olivier: Adjusted EBITDA and adjusted EBITDA margins.

Olivier: These adjusted financial measures should not be viewed as an alternative to GAAP measures, but are intended to best reflect the performance of our ongoing operations now I'll turn the call over to Olivier.

Olivier Loeillot: Thank you, and welcome to Repligen, Jacob. Good morning, everyone, and welcome to our 2025 First Quarter Call. Before jumping into our overall business performance, I want to spend a few minutes on the current environment. It's obviously a very dynamic macro backdrop with new headlines emerging every day. As you saw in our release, we had a very good first quarter and are encouraged by the underlying trends and opportunities in our business. We acknowledge macro uncertainties exist and are working to adapt to an evolving environment. As it pertains to tariffs, at this point in time, we see a limited net impact on our EPS. Given the strengths we have been seeing in orders for the last few quarters and with Q125 orders slightly above Q424, our organic full year 2025 guidance remains unchanged. This does not include specific impacts from tariffs.

Olivier: Thank you and welcome to rig the Gen Jacob.

Olivier: Good morning, everyone and white come to a 2025 first quarter coal.

Olivier: Before jumping into our overall business performance I want to spend a few minutes on the current environment.

Olivier: It's obviously, a very dynamic macro backdrop with new headlines emerging everyday.

Olivier: As you saw in our release, we had a very good first quarter and our own Croatia by the underlying trends and opportunities in our business. We acknowledge macro uncertainties exist and are working to adapt to an evolving environment.

Oh tends to carry at this point in time, we see a limited impact on our EPS.

Olivier: Given the strength, we have been seeing in orders for the last two quarters and with Q1 'twenty five orders slightly above Q4, 'twenty for organic food Yale twenty-five guidance remains unchanged.

Olivier: So this does not include specific impacts from tariffs.

Olivier Loeillot: As it pertains to tariffs, I would first highlight that the majority of our manufacturing is in the US. In fact, more than 90% of our US revenue is manufactured in the US or currently exempt from tariffs. In an effort to frame the potential impact of tariffs, we estimate that approximately 10% of our cost of goods sold are from raw materials directly sourced outside of the manufacturing region. In addition, we estimate a low single-digit percentage of our revenue could be subject to US tariffs. As it relates to Europe and Asia ex-China, this is where we could potentially have greater exposure in the case of retaliation, as revenue manufactured in the US for these regions represents about 1/4 of our total revenue. Though, based on the most recent proposal we have seen, tariffs would not apply to a sizable majority of these revenues.

Olivier: As it pertains to Terry I would first highlight that the majority of our manufacturing is in the U S. In fact more than 90% of all U S. Reuben U is manufactured in the U S or currently exempt from tariffs.

Olivier: They fought to frame the potential impact of tariffs, we estimate that approximately 10% of our cost of goods sold off from raw materials directly sourced outside of the manufacturing region.

Olivier: In addition, we estimate of low single digit boson tailed off our revenue could be subject to U S tariffs.

Olivier: As it relates to Europe, and Asia ex China, He sees where we could potentially have greater exposure in the case of retaliation is rather new manufactured in the U S. For these regions represent about a quarter of our total revenue.

Olivier: Based on the most recent proposal we have seen tariff would not apply to a sizable majority of these revenues.

Olivier Loeillot: We are working to mitigate tariff impacts by leveraging our global manufacturing network, applying surcharges, and pricing where appropriate. Finally, we would note China only represented 2% of our revenue in the quarter. In terms of financial impact, excluding the impact from China, given the unique nature of these tariffs, we believe the net result of these actions could be a tailwind for revenue, a modest headwind for margins, and have minimal impact on adjusted earnings per share. Our job as a management team is to navigate through this environment. In the meantime, we remain focused on executing our strategic plan for 2025. Moving on to highlights from the quarter, we had a very strong start to 2025 with 11% organic revenue growth in Q1 2025, which was 14% organic non-COVID.

Olivier: While working to mitigate tariff impacts by leveraging our global manufacturing network, applying surcharges and pricing where appropriate.

Olivier: Finally, we will know China only represented 2% of our revenue in the quarter.

Olivier: In terms of financial impact, excluding the impact from China, given the unique nature of these theories. We believes the net result of these actions could be a tailwind for revenue a modest headwind for margins and have minimal impact on adjusted earnings per share.

Olivier: Our job as a management team is to navigate through these environments in the meantime, we remain focused on executing our strategic plan for 2025.

Olivier: Moving on to highlights from the quarter, we had a very strong start to 2025 with 11% organic revenue growth in Q1, 25, which was 14% organic non colby.

Olivier Loeillot: Proteins had the highest growth of all of our franchises, outperforming our expectations, while Chromatography and Analytics both grew double digits. Filtration revenues were slightly up, excluding COVID, due to a tough comp from a large customer sale in the prior year. Consumables were very strong in the quarter, and while we did see some softness in capital equipment due to timing, we have a backlog that supports solid growth in the back half of the year. Orders were up high tens year-over-year, with all franchises growing double digits. In addition, our orders increased sequentially from Q4, which is impressive given Q1 is typically a seasonally slower quarter. While there are macro uncertainties, we remain focused on delivering on our strategy in 2025 and beyond.

Olivier: Proteins had the highest growth of all of our franchises outperforming our expectations why chromatography in there and then it peaks both grew double digits.

Olivier: <unk> revenues were slightly up it's green coffee due to a tough comp from a large customer savings of prior year.

Olivier: <unk>, we're very strong in the quarter and while we did see some softness in capital equipment due to timing, we have a backlog that supports solid growth in the back half of the year.

Orders were up high teens year on year with all franchises growing double digits.

Olivier: In addition, our orders increased sequentially from the fourth quarter, which is impressive given the first quarter is typically a seasonally slower quarter.

Olivier: But why is there a macro uncertainties, we remain focused on delivering on our strategy in 2025 and beyond.

Olivier Loeillot: We are encouraged by the many opportunities we are seeing across our portfolio as we sell into resilient markets that have demonstrated healthy growth over the long term. In fact, our 50%+ probability opportunity funnel was up 30% year-on-year. These opportunities are broad-based, and we want to emphasize that we have a diversified customer base. Our largest monoclonal antibody customer represented 6% of revenue in full year 2024, and our largest new modality customer was no more than 3%. Within our top customers, we are serving multiple programs. Finally, we made progress on many of our key strategic initiatives for 2025, including the acquisition of 908 Devices bioprocessing portfolio, the launch of a new Metenova mixer, and continuing our journey to be fit for growth. In short, we are encouraged by the momentum in our business, as highlighted by our Q1 results.

Olivier: Well core H by the many opportunities we're seeing across our portfolio as we sell into Raytheon in markets that have demonstrated healthy growth over the long term.

Olivier: In fact, a 50 person plus probability opportunity funnel was up 30% year on year.

Olivier: These opportunities are broad based and we want to emphasize that we have a diversified customer base.

Olivier: Our largest monoclonal antibody customer represented six post enough Ruben you're when full year 'twenty, four and our largest new modality customer was no more than sweep or subs.

Olivier: Within our top customers, whilst having multiple programs.

Olivier: Finally, we made progress on many of our key strategic initiatives for 2025, including the acquisition of 908 devices bio processing portfolio. The launch of a new make de novo mixer and continuing our journey to be fit for growth.

Olivier: In short we're encouraged by the momentum in our business as highlighted by our Q1 results.

Olivier Loeillot: We are working to navigate through the current environment with a focus on delivering differentiated products for customers, which we believe will drive successful performance for the company. Moving to performance by end market, Q1 2025 biopharma revenues were at the highest level ever, excluding COVID, and grew more than 20% year-over-year. This was supported by strong execution from our strategic accounts team, which is helping us to accelerate growth at our top 20 customers. Biopharma orders were also up approximately 20% versus Q1 2024, as these key customers are more broadly adopting products across our portfolio. After two very strong quarters, CDMO revenues were down slightly year-over-year, with orders up more than 40% year-over-year. We expect revenue growth to accelerate throughout the rest of the year.

Olivier: While working to navigate through the current environment with a focus on delivering differentiated products for customers, which we believe will drive successful pay per month for the company.

Olivier: Okay.

Olivier: Moving to performance by end markets.

Olivier: 125, Biopharma Aruba newswire, the highest level ever it's creating Cavite and grew more than 20 people suddenly year on year.

Olivier: This was supported by strong execution from our strategic accounts team, which is helping us to accelerate growth at our top 20 customers.

Olivier: Biopharma orders were also up approximately 20 bolsa investors Q1, 'twenty four as these key customers are more broadly adopting products across our portfolio.

After two very strong quarters C. D E mail revenues were down slightly year on year with orders up more than 40% year on year, we expect revenue growth to accelerate throughout the rest of the year.

Olivier Loeillot: Consumable revenues, which exclude proteins, grew greater than 20% year-on-year, a record quarter on a non-COVID basis, driven by ATF consumables, OPUS, and fluid management. Our recent design wins in late phase and commercial drugs are becoming a significant tailwind. Consumable orders were also at a record level and up more than 20% versus Q1 2024. Capital equipment revenues decline year-on-year, as we expected. Both our backlog and funnel are strong, so we expect capital equipment revenue to strengthen as the year progresses. Though, given the current backdrop and normal Q1 seasonality, we have seen some delays in customer orders. New modalities revenues and orders were up in the quarter. While there may be some near-term challenges for this end market, we continue to believe this is a strategic end market for Repligen.

Olivier: Consumable revenues, which exclude proteins grew greater than 20 bolsa in your on your record quarter on the non Kobe basis, driven by a T S consumables Apis and fluid management.

Olivier: How are we recent design wins in late phase and commercial drugs are becoming a significant 10 weeks.

Olivier: Consumable orders were also at a record level and up more than 20 people soon versus quarter 124.

Olivier: Capital equipment revenues declined year on year as we expected.

Olivier: Our backlog and so not as strong so we expect capital equipment revenue to strengthen as the year progresses. So given the current backdrop, a normal Q1 seasonality we have seen some delays in customer orders.

Olivier: New modalities revenues and orders were up in the quarter why is there may be some near term challenges for this end market. We continue to believe this is a strategy and market for a P. J.

Olivier Loeillot: Finally, from a geographic point of view, the Americas, Europe, APAC, excluding China, had a very strong quarter both for revenues and orders. China, on the other hand, continues to decline and represented about only 2% of our Q1 revenues and orders, a very small share of our total business. On our Q4 2024 call, we outlined five key areas of strategic focus this year. I want to provide updates on some of the progress we made during the quarter. First, we stated our ambition to acquire one to two businesses to strengthen our position with a focus on new modalities and PAT. In March, we announced the acquisition of 908 Devices bioprocessing PAT portfolio. Jason will provide additional details around the financial impact of that transaction.

Olivier: Finally from a geographic point of view, the Americas Europe, APAC, excluding China at a very strong quarter, both for revenue than Otis China on the other hand continues to decline and represented about only two portions of our Q1 revenue was I know, there's a very small share of our total business.

Olivier: Yeah.

Olivier: Well now Q4, 'twenty four call, we outlined five key areas of strategic for QC sure.

Olivier: I want to provide updates on some of the progress we made during the quarter.

Olivier: Trust, we stayed around vision to acquire a one to two businesses to strengthen our position with a focus on new modalities and ph D.

Olivier: In March we announced the accretion of 908 device bio processing P&C portfolio.

Olivier: <unk> will provide additional details around the financial impact of that transaction.

Olivier Loeillot: Strategically, this acquisition accelerates our journey to enable the digitization of bioprocessing by key technologies, which allow us to bring PAT integrated upstream solutions to the bioprocessing industry and complement our downstream capabilities. Looking ahead, 908 products will benefit from leveraging our commercial infrastructure, and we will continue to invest in product development to launch additional PAT technologies as we try to prepare for the next wave of industry digitization. Operationally, we are working to transition 908 Massachusetts manufacturing into a Repligen facility and continue to assess additional footprint optimization. Secondly, we are working to capitalize on our best-in-class innovation and continue to invest in R&D. Recently, we launched a ProConnex MixOne, a single-use mixer based on Metenova's mixing technology.

Olivier: Strategically this acquisition accelerates our journey to enable with the Digitization of bio processing biting key technologies, which are low as two green phe integrator that scream solution to the bio processing industry and complements our downstream capabilities.

Olivier: Looking ahead nine waste products will benefit from leveraging our commercial infrastructure and we will continue to invest in product development to launch additional phe technologies as we try to prepare for the next wave of industry Digitization.

Olivier: Operationally, while working to transition nine weight, Massachusetts manufacturing into a rookie Gen facility and continue to assess additional footprint optimization.

Olivier: Secondly, while working to capitalize on our best in class innovation and continue to invest in R&D.

Olivier: Recently, we launched a proper next mix one a singular use makes are based on methanol that's mixing technology.

Olivier Loeillot: This is a great example of the integration of Repligen's R&D and M&A strategy, as this product combines components from a number of our fluid management acquisitions into a best-in-class single-use technology. Feedback from the INTERPHEX conference was positive, with multiple demos requested. We expect to receive the initial orders of the MixOne mixers in the second half of 2025. Finally, we continue to invest to become further fit for growth, positioning Repligen to be a much larger business in the not-too-distant future. During the quarter, we made investments in finance and quality, which should help increase visibility in our business and improve our customer experience. Moving now to franchise-level business highlights. Non-COVID filtration revenue was up slightly year-over-year in Q1. The quarter played out largely as we expected. Fluid management and TangenX flagship cassettes led the way.

Olivier: This is a great example of integration of <unk> R&D and M&A strategy as these product combines components from a number of our fluid management acquisition into a best in class single use technology.

Olivier: Feedback from the interface conference was positive with multiple demos requested.

Olivier: We expect to receive the initial orders of the mix one makes us in the second half of 2025.

Olivier: Yeah.

Olivier: Finally, we continue to invest to become further feed for girls.

Olivier: Positioning <unk> to be a much larger business in the not too distant future.

Olivier: During the quarter, we made investments in finance and quality, which should help increase visibility in our business and improve our customer experience.

Olivier: Moving now to franchise level business highlights.

Olivier: Non COVID-19 filtration revenue was up slightly year on year in Q1.

Olivier: The quarter played out largely as we expected.

Olivier: Fleet management and country mix flat sheet cassettes led the way.

Olivier Loeillot: ATF consumables were strong and at a record level, while ATF hardware was down year-on-year due to a tough comparison. We remain positive about the medium-term outlook for this product line as we continue to see new wins and applications for the technology across end markets, given the differentiated performance, including customers' ability to scale up and down on the platform. Our fluid management products are getting traction with some significant recent wins with pharma customers. TangenX also has real momentum with multiple design wins. Filtration orders grew low double-digit year-on-year, which set us up well for double-digit non-COVID growth for the balance of the year. Chromatography grew double digits, driven by growth in large-scale columns. Orders increased greater than 50%, the highest quarterly order intake in the last three years.

Olivier: It's yet consume a bold was strong and that's a record level, while ETF hardware was down year on year due to a tax comparison.

Olivier: We remain positive about the medium term outlook for this product line as we continue to see new wins and applications for the technology across end markets, given the differentiated performance, including customers the ability to scale up and down on the platform.

Olivier: Our fluid management products are getting traction with some significant recent wins with pharma customers.

<unk> also has real momentum with multiple design win successes.

Penetration orders grew low double digits year on year, which sets us up well for double digit non coffee growth for the balance of the year.

Olivier: Chromatography grew double digits driven by growth in large scale columns.

Olivier: There's increased greater than 50% the highest quarterly order intake in the last three years.

Olivier Loeillot: OPUS has long been successful with CDMO customers, and we are now gaining more traction with large pharma customers, which is an encouraging development. We expect chromatography growth will be strong for the remainder of the year. Proteins had a great quarter with strong year-over-year growth. This was driven by a record quarter for chromatography resins, as we benefited from the timing of commercial demand. During the quarter, we strengthened our collaboration with Purolite through joint customer discussions. Our chromatography custom resins had strong growth in the quarter, which highlights our strategy to develop our own content. While the quarter played out better than we expected, our full-year outlook for the segment is unchanged. Process Analytics grew 20%, with $1 million of revenue from the 908 acquisition in Q1 and 12% organically. This was mainly driven by consumable and service optic.

Olivier: <unk> has long been successful with more customers and we are now getting more traction with large pharma customers, which is a noncore <unk> developments.

Olivier: We expect chromatography growth will be strong for the remainder of the year.

Olivier: Proteins had a great quarter with strong year on year growth. This was driven by a record quarter for chromatography resins as we benefited from the timing of commercial demand.

Olivier: During the quarter, we strengthened our collaboration with pure light through joint customer discussions.

Olivier: Our chromatography custom reasons had strong growth in the quarter, which highlights our strategy to develop our own content.

Olivier: Why is the quarter played out better than we expected our full year outlook for the segment is unchanged.

Olivier: Process and any keep crude 20, Parsons with 1 million of revenue from the nine always acquisition in the first quarter and 12% organically. These.

Olivier: Was mainly driven by consumable and service uptick.

Olivier Loeillot: To summarize our Q1 performance, 14% organic non-COVID revenue growth is a very good start to the year. Our order and funnel trends highlight the momentum in the business. As a result, we are confident in our 2025 outlook and delivering above-market growth. We are focused on executing our strategy, delivering differentiated products to customers, while being nimble to adapt to an evolving economic environment to best serve our customers and create value for shareholders. Before I turn the call over to Jason, I want to thank Sondra Newman, our outgoing Vice President of Investor Relations, for her many years of service to Repligen. We wish her the best in retirement.

Olivier: To summarize our Q1 performance, 14% organic non coffee the revenue growth is a very good start to the year.

Olivier: Our order and Cerner trends highlight the momentum in the business as a result, we're confident in our 2025 outlook and de levering of both market growth well focus on executive our strategy delivering differentiated products to customers, while being nimble to adapt to enable being economic environment.

Olivier: To best serve our customers and create value for shareholders.

Jason: Before I turn the call over to Jason I want to thank Sondra Newman, our outgoing Vice President of Investor Relations for her many years of service to repeat Jen we wish her the best in retirement.

Operator: Thank you, Olivier, and good morning, everyone. Today, we are reporting our financial results for the first quarter of 2025 and providing an update to our financial guidance for the full year. Unless otherwise mentioned, all financial measures discussed reflect adjusted non-GAAP measures. As shared in our press release this morning, we delivered first-quarter revenue of $169 million. This exceeded our expectations of a sequential decline from the fourth quarter, despite a $2 million or a 1.5-point headwind from foreign exchange. This is a reported increase of 10% for the first quarter. We are up 11% on an organic basis, which excludes the impact of acquisitions in currency, and up 14% on an organic non-COVID basis, which we believe best reflects our underlying great performance in the quarter. Acquisitions contribute approximately one point of the reported growth.

Jason Garland: Thank you, Olivier, and good morning, everyone. Today, we are reporting our financial results for the first quarter of 2025 and providing an update to our financial guidance for the full year. Unless otherwise mentioned, all financial measures discussed reflect adjusted non-GAAP measures. As shared in our press release this morning, we delivered first-quarter revenue of $169 million. This exceeded our expectations of a sequential decline from the fourth quarter, despite a $2 million or a 1.5-point headwind from foreign exchange. This is a reported increase of 10% for the first quarter. We are up 11% on an organic basis, which excludes the impact of acquisitions in currency, and up 14% on an organic non-COVID basis, which we believe best reflects our underlying great performance in the quarter. Acquisitions contribute approximately one point of the reported growth.

Speaker Change: Thank you Olivier and good morning, everyone.

Speaker Change: Today, we are reporting our financial results for the first quarter of 2025, and providing an update to our financial guidance for the full year.

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

Speaker Change: As shared in our press release. This morning, we delivered first quarter revenue of $169 million. This exceeded our expectations of a sequential decline from the fourth quarter, Despite a $2 million or a one five point headwind from foreign exchange. This is a reported increase of 10% for the first quarter.

Speaker Change: We were up 11% on an organic basis, which excludes the impact of acquisitions and currency and up 14% on an organic non COVID-19 basis, which we believe best reflects our underlying great performance in the quarter acquisitions contributed approximately one point of the reported growth.

Operator: As Olivier shared color on our product franchise performance, I'll provide more detail on the performance across our global regions. Starting with quarterly revenue, North America represented 50% of our total. Europe represented 35%, and Asia-Pacific and the rest of the world represented 15%. North America and Europe were both up 13%, and Asia, excluding China, was equally strong with 12% growth. China was down significantly and, as Olivier mentioned earlier, now represents about 2% of our total business. China remains a region with unique challenges, but given our relatively small exposure to the region and the strength we are seeing elsewhere, we believe we can largely offset China-related headwinds. For orders, North America and Europe were the regions that drove our growth in the quarter.

Jason Garland: As Olivier shared color on our product franchise performance, I'll provide more detail on the performance across our global regions. Starting with quarterly revenue, North America represented 50% of our total. Europe represented 35%, and Asia-Pacific and the rest of the world represented 15%. North America and Europe were both up 13%, and Asia, excluding China, was equally strong with 12% growth. China was down significantly and, as Olivier mentioned earlier, now represents about 2% of our total business. China remains a region with unique challenges, but given our relatively small exposure to the region and the strength we are seeing elsewhere, we believe we can largely offset China-related headwinds. For orders, North America and Europe were the regions that drove our growth in the quarter.

Speaker Change: As Olivier shared color on our product franchise performance I'll provide more detail on the performance across our global regions.

Speaker Change: With quarterly revenue North America represented 50% of our total <unk>.

Speaker Change: Europe represented 35%.

Speaker Change: In Asia Pacific and the rest of the world represented 15% North.

Speaker Change: North America, and Europe were both up 13% and Asia, Excluding China was equally strong with 12% growth channel.

Speaker Change: China was down significantly and as Olivier mentioned earlier now represents about 2% of our total business.

Speaker Change: China remains the region with unique challenges, but given our relatively small exposure to the region and the strength. We are seeing elsewhere. We believe we can largely offset China related headwinds.

Speaker Change: For orders North America, and Europe were the regions that drove our growth in the quarter.

Operator: Transitioning to profit margins, we are very pleased with our performance in the first quarter when the adjusted gross profit of $91 million and delivering 53.7% adjusted gross margin. This is up nearly 450 basis points versus last year, driven by 150 basis points benefit from higher volume, 100 basis points of benefit from favorable mix associated with the strong Proteins sales in the first quarter Olivier discussed earlier, offset by 60 basis points of COVID-related headwinds. The team delivered 200 basis points of benefit from productivity execution in our supply chain as our momentum from year-end carried forward into the first quarter. Given the Proteins mix benefit in the first quarter is unlikely to repeat, we expect the first-quarter gross margin to be the highest of the year.

Jason Garland: Transitioning to profit margins, we are very pleased with our performance in the first quarter when the adjusted gross profit of $91 million and delivering 53.7% adjusted gross margin. This is up nearly 450 basis points versus last year, driven by 150 basis points benefit from higher volume, 100 basis points of benefit from favorable mix associated with the strong Proteins sales in the first quarter Olivier discussed earlier, offset by 60 basis points of COVID-related headwinds. The team delivered 200 basis points of benefit from productivity execution in our supply chain as our momentum from year-end carried forward into the first quarter. Given the Proteins mix benefit in the first quarter is unlikely to repeat, we expect the first-quarter gross margin to be the highest of the year.

Speaker Change: Transitioning the profit margins, we are very pleased with our performance in the first quarter when the adjusted gross profit of $91 million and delivering 53, 7%. Adjusted gross margin. This is up nearly 450 basis points versus last year, driven by a 150 basis points benefit from higher.

Speaker Change: Volume.

Speaker Change: 100 basis points of benefit from favorable mix associated with the strong protein sales in the first quarter Olivier discussed earlier offset by 60 basis points of Covid related headwinds that.

Speaker Change: Team delivered 200 basis points of benefit from productivity execution in our supply chain as a momentum from year end carried forward into the first quarter.

Speaker Change: Given the proteins mix benefit in the first quarter is unlikely to repeat we expect our first quarter gross margin to be the highest of the year.

Operator: Continuing through the P&L, our adjusted income from operations was $23 million in the first quarter, up 72% or approximately $10 million versus the first quarter of 2024 on strong volume leverage. This increase is driven by $15 million higher gross profit from higher sales and the gross margin discussed earlier, offset by an increase in operating expenses of approximately $6 million. OPEX grew by about 9% on a reported basis, including some one-time operating expenses in the quarter, but up about 6% on an organic basis, excluding the impact of acquisitions. This is less than half of the equivalent organic non-COVID revenue growth rate of 14%. This translated to an adjusted operating income margin of 13.8%, also driven mostly by strong volume leverage. This was up 490 basis points from the first quarter of 2024.

Jason Garland: Continuing through the P&L, our adjusted income from operations was $23 million in the first quarter, up 72% or approximately $10 million versus the first quarter of 2024 on strong volume leverage. This increase is driven by $15 million higher gross profit from higher sales and the gross margin discussed earlier, offset by an increase in operating expenses of approximately $6 million. OPEX grew by about 9% on a reported basis, including some one-time operating expenses in the quarter, but up about 6% on an organic basis, excluding the impact of acquisitions. This is less than half of the equivalent organic non-COVID revenue growth rate of 14%. This translated to an adjusted operating income margin of 13.8%, also driven mostly by strong volume leverage. This was up 490 basis points from the first quarter of 2024.

Speaker Change: Continuing through the P&L, our adjusted income from operations was $23 million in the first quarter up 72% or approximately $10 million versus the first quarter of 2024 on strong volume leverage. This increase is driven by $15 million higher gross profit from higher sales and the gross margin discussion.

Speaker Change: Just earlier offset by an increase in operating expenses of approximately $6 million.

Speaker Change: Opex grew by about 9% on a reported basis, including some one time operating expenses in the quarter, but up about 6% on an organic basis, excluding the impact of acquisitions. This is less than half of the equivalent organic non COVID-19 revenue growth rate of 14%.

Speaker Change: This translated to an adjusted operating income margin of 13, 8% also driven mostly by strong volume leverage. This was up 490 basis points from the first quarter of 2024.

Operator: Adjusted operating margin improvement also included the aforementioned mix benefit from Proteins volume, offset by COVID non-repeating, and one month of 908 Devices bioprocessing portfolio and the previously mentioned one-time operating expenses. Our Q1 adjusted EBITDA margin rate was 19.3%. Adjusted net income was $22 million, up about $5 million or 29% from Q1 2024. Higher adjusted operating income was offset by lower interest income and higher tax provisions. Our Q1 adjusted effective tax rate was 23.1%, in line with the high end of our total year guidance, but about four points higher than last year due to less stock compensation windfall benefits. There is no change in our total year adjusted effective tax rate guide. Adjusted fully diluted earnings per share for Q1 were $0.39, compared to $0.30 in the same period of 2024, up 29%.

Jason Garland: Adjusted operating margin improvement also included the aforementioned mix benefit from Proteins volume, offset by COVID non-repeating, and one month of 908 Devices bioprocessing portfolio and the previously mentioned one-time operating expenses. Our Q1 adjusted EBITDA margin rate was 19.3%. Adjusted net income was $22 million, up about $5 million or 29% from Q1 2024. Higher adjusted operating income was offset by lower interest income and higher tax provisions. Our Q1 adjusted effective tax rate was 23.1%, in line with the high end of our total year guidance, but about four points higher than last year due to less stock compensation windfall benefits. There is no change in our total year adjusted effective tax rate guide. Adjusted fully diluted earnings per share for Q1 were $0.39, compared to $0.30 in the same period of 2024, up 29%.

Speaker Change: Adjusted operating margin improvement also included the.

Speaker Change: Before mentioned mixed benefit from proteins volume.

Speaker Change: Offset by Covid, non repeating and one month of 908 devices bio processing portfolio and the previously mentioned onetime operating expenses, our first quarter adjusted EBITDA margin rate was 19, 3%.

Speaker Change: Adjusted net income was $22 million up about $5 million or 29% from the first quarter of 2024.

Speaker Change: Higher adjusted operating income was offset by lower interest income and higher tax provisions our first quarter adjusted effective tax rate was 23, 1% in line with the high end of our total year guidance, but about four points higher than last year due to less stock compensation windfall benefits there.

Speaker Change: No change in our total year adjusted effective tax rate guide.

Speaker Change: Adjusted fully diluted earnings per share for the first quarter were 39 cents compared to 30 cents in the same period of 2024 up 29%.

Operator: Finally, our cash position at the end of the first quarter of 2025 was $697 million, down $60 million sequentially from year-end after using $70 million for the settlement of our acquisition. This was partially offset by a cash flow from operations generation of $15 million in the quarter. We are very happy with the strong first-quarter results delivering above-market revenue growth and strong margin expansion, which positions us well to deliver on our 2025 outlook. I will now provide an update on our guidance for the full year of 2025. I'll speak to adjusted financial guidance, but please note that our GAAP to non-GAAP reconciliations for our 2025 guidance are included in the reconciliation tables in today's earnings press release. For further clarity, our guidance includes the impact of the December 2024 acquisition of Tantti and now includes the March acquisition of the 908 bioprocessing portfolio.

Jason Garland: Finally, our cash position at the end of the first quarter of 2025 was $697 million, down $60 million sequentially from year-end after using $70 million for the settlement of our acquisition. This was partially offset by a cash flow from operations generation of $15 million in the quarter. We are very happy with the strong first-quarter results delivering above-market revenue growth and strong margin expansion, which positions us well to deliver on our 2025 outlook. I will now provide an update on our guidance for the full year of 2025. I'll speak to adjusted financial guidance, but please note that our GAAP to non-GAAP reconciliations for our 2025 guidance are included in the reconciliation tables in today's earnings press release. For further clarity, our guidance includes the impact of the December 2024 acquisition of Tantti and now includes the March acquisition of the 908 bioprocessing portfolio.

Speaker Change: Finally, our cash position at the end of the first quarter of 2025 was $697 million down $60 million sequentially from year end after using $70 million for the settlement of our acquisition. This was partially offset by our cash flow from operations generation of $15 million in the core.

Speaker Change: Order.

Speaker Change: We are very happy with the strong first quarter results delivering above market revenue growth and strong margin expansion, which positions us well to deliver on our 2025 outlook.

Speaker Change: I will now provide an update on our guidance for the full year of 2025.

Speaker Change: I will speak to adjusted financial guidance, but please note that our GAAP to non-GAAP reconciliations for each 25 guidance are included in the reconciliation tables in today's earnings press release and for further clarity. Our guidance includes the impact of the December 2024 acquisition of <unk> and now includes the March acquisition.

Speaker Change: Of the 908 bioprocess in portfolio, we will report revenue related to the 908 bio processing portfolio, but we do not expect to report acquisition related revenues Hitachi.

Operator: We'll report revenue related to the 908 bioprocessing portfolio, but we do not expect to report acquisition-related revenue to Tantti, as its products will be used as a component in our Avitai resin sales. As highlighted earlier by Olivier, our organic 2025 guidance is unchanged at 9.5% to 13.5% growth and 11.5% to 15.5% growth for our organic non-COVID business. That said, we are increasing our reported revenue guidance from $685 million to $710 million to $695 million to $720 million, solely to incorporate the expected additional revenue from the 908 bioprocessing portfolio acquisition. As it relates to the macro-level volatility, we have decided not to incorporate any specific changes in this guide. That said, we'll provide as much context on potential impacts as we can. For currency, we have still assumed about 150 basis points of year-over-year FX headwind in this guide.

Jason Garland: We'll report revenue related to the 908 bioprocessing portfolio, but we do not expect to report acquisition-related revenue to Tantti, as its products will be used as a component in our Avitai resin sales. As highlighted earlier by Olivier, our organic 2025 guidance is unchanged at 9.5% to 13.5% growth and 11.5% to 15.5% growth for our organic non-COVID business. That said, we are increasing our reported revenue guidance from $685 million to $710 million to $695 million to $720 million, solely to incorporate the expected additional revenue from the 908 bioprocessing portfolio acquisition. As it relates to the macro-level volatility, we have decided not to incorporate any specific changes in this guide. That said, we'll provide as much context on potential impacts as we can. For currency, we have still assumed about 150 basis points of year-over-year FX headwind in this guide.

Speaker Change: As its products will be used as a component in our appetite resin sales.

Speaker Change: As highlighted earlier by Olivier our organic 2025 guidance is unchanged at nine 5% to 13, 5% growth and 11 five to 15, 5% growth for our organic non COVID-19 business that said, we are increasing our <unk>.

Speaker Change: Ported revenue guidance from $685 million to $710 million to $695 million to $720 million solely to incorporate the expected additional revenue from the nine O a bio processing portfolio acquisition.

Speaker Change: As it relates to the macro level volatility, we have decided not to incorporate any specific changes in this guy that said, we will provide as much context on potential impacts as we can.

Speaker Change: For currency, we have still assumed about 150 basis points of year over year FX headwind in the sky.

Operator: Any additional fluctuations, higher or lower, could change that view. For example, at last Friday's exchange rates, we could see almost a full point of tailwind on our revenue growth rate for the year. Given the volatility of the trade environment, we have not included any impact from tariffs in the guide. To frame the possible financial impact, we could see a net increase in sales from potential surcharges that Olivier mentioned earlier, and we will leverage our global manufacturing network and pricing where appropriate to minimize the impact on gross profit. We will quantify these impacts as much as possible as report results in the future. Regarding our revenue cadence, we still expect revenues in the second half of 2025 to be higher than the first half. We expect our year-over-year organic non-COVID growth to accelerate in Q2 and revenues to be up sequentially from the first quarter.

Jason Garland: Any additional fluctuations, higher or lower, could change that view. For example, at last Friday's exchange rates, we could see almost a full point of tailwind on our revenue growth rate for the year. Given the volatility of the trade environment, we have not included any impact from tariffs in the guide. To frame the possible financial impact, we could see a net increase in sales from potential surcharges that Olivier mentioned earlier, and we will leverage our global manufacturing network and pricing where appropriate to minimize the impact on gross profit. We will quantify these impacts as much as possible as report results in the future. Regarding our revenue cadence, we still expect revenues in the second half of 2025 to be higher than the first half. We expect our year-over-year organic non-COVID growth to accelerate in Q2 and revenues to be up sequentially from the first quarter.

Speaker Change: Any additional fluctuations higher or lower could change that view for example at last Fridays exchange rates, we could see almost a full point of tailwind on our revenue growth rate for the year.

Speaker Change: Given the volatility of the trade environment, we have not included any impact from tariffs and the guy the frame the possible financial impact we could see a net increase in sales from potential surcharges that Olivier mentioned earlier, and we will leverage our global manufacturing network and pricing where appropriate to minimize the impact on gross profit we will kind of.

Speaker Change: Quantify these impacts as much as possible as we report results in the future.

Speaker Change: Regarding our revenue cadence, we still expect revenues in the second half of 2025 to be higher than the first half we expect our year over year organic non kobe growth to accelerate into Q and revenues to be up sequentially from the first quarter.

Operator: In terms of growth by franchise, our outlook for our filtration, chromatography, and proteins franchises are unchanged versus our previous guidance, while we now expect 20% to 25% growth in analytics as we integrate the 908 bioprocessing portfolio. We now expect to deliver adjusted gross margins in the range of 52% to 53%, which represents 160 to 260 basis points of year-over-year margin expansion. This is a 100 basis point increase versus our prior guidance. This primarily relates to a shift in cost to operating expenses from cost of goods sold, where they had been assumed in our previous guide. There is no change in operating income related to this change. The 908 bioprocessing portfolio is also slightly accretive to gross margin.

Jason Garland: In terms of growth by franchise, our outlook for our filtration, chromatography, and proteins franchises are unchanged versus our previous guidance, while we now expect 20% to 25% growth in analytics as we integrate the 908 bioprocessing portfolio. We now expect to deliver adjusted gross margins in the range of 52% to 53%, which represents 160 to 260 basis points of year-over-year margin expansion. This is a 100 basis point increase versus our prior guidance. This primarily relates to a shift in cost to operating expenses from cost of goods sold, where they had been assumed in our previous guide. There is no change in operating income related to this change. The 908 bioprocessing portfolio is also slightly accretive to gross margin.

Speaker Change: In terms of growth by franchise, our outlook for our filtration chromatography and proteins franchises are unchanged versus our previous guidance.

Speaker Change: We now expect 20% to 25% growth in analytics as we integrate the nine O a bio processing portfolio.

Speaker Change: We now expect to deliver adjusted gross margins in the range of 52% to 53%, which represents a 160 to 260 basis points of year over year margin expansion. This is a 100 basis point increase versus our prior guidance. This primarily relates to a shifting cost to operating expenses.

Speaker Change: From cost of goods sold where they had been assumed in our previous guide there's no change in operating income related to this change the 90 way by our processing portfolio was also slightly accretive to gross margin.

Operator: We still expect underlying year-over-year gross margin expansion to be driven by volume leverage, pricing, manufacturing productivity, and strategic sourcing savings, primarily offset by inflation and some 2024 COVID sales drag. Manufacturing productivity will be driven by our replica performance system across all categories of cost of goods sold. We have not changed our assumption that the guide includes roughly 50 basis points of headwind from foreign currency. However, it does not yet include any impacts from potential tariffs being discussed in the current global trade environment. We now expect our adjusted income from operations to be between $95 million to $102 million or $13.5 million to $14.5 million adjusted operating income margin. The $4 million revision versus prior guidance is due to the acquisition of the 908 Devices bioprocessing portfolio. Inflation, recent acquisitions, and investments in operating expenses will be the key headwinds.

Jason Garland: We still expect underlying year-over-year gross margin expansion to be driven by volume leverage, pricing, manufacturing productivity, and strategic sourcing savings, primarily offset by inflation and some 2024 COVID sales drag. Manufacturing productivity will be driven by our replica performance system across all categories of cost of goods sold. We have not changed our assumption that the guide includes roughly 50 basis points of headwind from foreign currency. However, it does not yet include any impacts from potential tariffs being discussed in the current global trade environment. We now expect our adjusted income from operations to be between $95 million to $102 million or $13.5 million to $14.5 million adjusted operating income margin. The $4 million revision versus prior guidance is due to the acquisition of the 908 Devices bioprocessing portfolio. Inflation, recent acquisitions, and investments in operating expenses will be the key headwinds.

Speaker Change: We still expect underlying year over year gross margin expansion to be driven by volume leverage pricing manufacturing productivity and strategic sourcing savings, primarily offsetting by inflation and some 2020 for COVID-19 sales drag.

Speaker Change: Manufacturing productivity will be driven by our records and performance system across all categories of cost of goods sold.

Speaker Change: We have not changed our assumption that the guide includes roughly 50 basis points of headwind from foreign currency. However, it does not yet include any impacts from potential tariffs being discussed in the current global trade environment.

Speaker Change: We now expect our adjusted income from operations to be between $95 million to $102 million or 13, five to $14 five adjusted operating income margin of $4 million revision versus prior guidance is due to the acquisition of the 900 <unk> bio processing portfolio inflation recent.

Speaker Change: Visions and investments in operating expenses will be the key headwinds, we expect to more than make up for that with gross margin improvements just outlines overall, we continue to manage our organic investments in operating expenses at a lower rate than sales growth as we balanced cost efficiency with investments that are critical to support.

Operator: We expect to more than make up for that with gross margin improvements just outlined. Overall, we continue to manage our organic investments in operating expenses at a lower rate than sales growth as we balance cost efficiency with investments that are critical to support future growth. That said, our implied operating expenses will increase versus the prior guide, primarily due to the acquisition and from the cost change described above. Continuing through the P&L, we have not changed our expectations on adjusted other income. We are now factoring in fewer interest rate cuts, which offsets our lower cash balance as a result of the acquisition. Our 2025 adjusted effective tax rate expectations are also unchanged at 22% to 23%. The increase versus 2024's ending rate of 20.4% is driven primarily by the absence of stock-based compensation windfall benefit that we have seen for the last several years.

Jason Garland: We expect to more than make up for that with gross margin improvements just outlined. Overall, we continue to manage our organic investments in operating expenses at a lower rate than sales growth as we balance cost efficiency with investments that are critical to support future growth. That said, our implied operating expenses will increase versus the prior guide, primarily due to the acquisition and from the cost change described above. Continuing through the P&L, we have not changed our expectations on adjusted other income. We are now factoring in fewer interest rate cuts, which offsets our lower cash balance as a result of the acquisition. Our 2025 adjusted effective tax rate expectations are also unchanged at 22% to 23%. The increase versus 2024's ending rate of 20.4% is driven primarily by the absence of stock-based compensation windfall benefit that we have seen for the last several years.

<unk> growth.

Speaker Change: That said, our implied operating expenses will increase versus the prior guide primarily due to the acquisition and from the cost change described above.

Speaker Change: Continuing through the P&L, we have not changed our expectations on adjusted other income we are now factoring in fewer interest rate cuts, which offsets our lower cash balance as a result of the acquisition. Our 2025 adjusted effective tax rate ex the expectations are also unchanged at 22 to 23.

Speaker Change: <unk>.

Speaker Change: The increase versus 2024 is ending rate of 24% is driven primarily by the absence of stock based compensation windfall benefit that we've seen that and we have seen for the last several years.

Operator: We will continue to evaluate tax planning options to improve from here. Incorporating the 908 bioprocessing portfolio acquisition impact, we now expect our adjusted fully diluted earnings per share to be between $1.63 and $1.72, down $0.04 from our prior range of $1.67 to $1.76, which represents 3% to 9% growth versus last year. Our balance sheet remains incredibly strong and well-positioned to manage the volatile environment. We will remain prudent in our spending while maintaining flexible dry powder for potential acquisitions. We still expect CapEx to be down 20% to 25% versus 2024, with our spending back to pre-COVID levels. As we wrap, we are encouraged by the very strong start to 2025. We made good progress on our strategic priorities in the first quarter with the acquisition of 908's bioprocessing portfolio, new product launches, and continue our journey to be fit for growth.

Jason Garland: We will continue to evaluate tax planning options to improve from here. Incorporating the 908 bioprocessing portfolio acquisition impact, we now expect our adjusted fully diluted earnings per share to be between $1.63 and $1.72, down $0.04 from our prior range of $1.67 to $1.76, which represents 3% to 9% growth versus last year. Our balance sheet remains incredibly strong and well-positioned to manage the volatile environment. We will remain prudent in our spending while maintaining flexible dry powder for potential acquisitions. We still expect CapEx to be down 20% to 25% versus 2024, with our spending back to pre-COVID levels. As we wrap, we are encouraged by the very strong start to 2025. We made good progress on our strategic priorities in the first quarter with the acquisition of 908's bioprocessing portfolio, new product launches, and continue our journey to be fit for growth.

Speaker Change: We will continue to evaluate tax planning options to improve from here.

Speaker Change: Incorporating the 908 bio processing portfolio acquisition impact, we now expect our adjusted fully diluted earnings per share to be between $1 63, and $1 72.

Speaker Change: Down <unk> <unk> from our prior range of $1 67 to $1 76, which represents 3% to 9% growth versus last year.

Speaker Change: Our balance sheet remains incredibly strong and well positioned to manage the volatile environment, we will remain prudent in our spending while maintaining flexible dry powder for potential acquisitions, we still expect capex to be down 20% to 25% versus 2024 with our spending back to pre COVID-19 levels.

Speaker Change: Yeah.

Speaker Change: As we wrap we are encouraged by the very strong start to 2025, we made good progress on our strategic priorities in the first quarter with the acquisition of <unk>.

Speaker Change: Bioprocess and portfolio, new product launches and continue our journey to be fit for growth. We will continue to manage to the uncertain environment and expect to maintain above market growth with that I will turn the call back to the operator to open the lines for questions.

Operator: We will continue to manage the uncertain environment and expect to maintain above-market growth. With that, I will turn the call back to the operator to open the lines for questions. 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 keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Rachel Vatnsdal with J.P. Morgan. Please go ahead.

Jason Garland: We will continue to manage the uncertain environment and expect to maintain above-market growth. With that, I will turn the call back to the operator to open the lines for questions.

Operator: 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 keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Rachel Vatnsdal with J.P. Morgan. Please go ahead.

Speaker Change: We will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Speaker Change: If you were using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change: At this time.

Speaker Change: We will pause momentarily to assemble our roster.

Speaker Change: The first question comes from Rich veterans dealt with J P. Morgan. Please go ahead.

Rachel Vatnsdal: Perfect. Good morning. Thanks so much for taking the questions. And quickly, just wanted to say, Sondra, congratulations on the retirement. It's been great working with you. And Jacob, looking forward to working with you on this side as well. So maybe just digging into it, first question, I wanted to ask on the CDMO order trends that you guys saw in the quarter. You mentioned that CDMO orders grew 40%. One question we're just getting right now is on the tariff dynamic. Did the tariffs impact any element of pull forward in your order book this quarter, especially with some of those large CDMO customers?

Speaker Change: Hi, Thanks. Good morning, Thanks, so much for taking the questions and quickly just wanted to say congratulations on the retirement, it's been great working with you and Jake I'm looking forward to working with you on that side as well.

Speaker Change: So maybe just digging into that first question I wanted to ask on the CMO order changes that you guys saw in the corner you mentioned that theme order CMO orders grew 40% and one question on just getting right now is on the tariff dynamic did the tariffs impact any element of pull forward in your order book this quarter, especially with some of those large T D.

Speaker Change: And our customers.

Rachel Vatnsdal: And then, just given how solid that order number was, can you walk us through what were some of the key products that drove that solid order and remind us where you guys are in terms of ATF adoption within those CDMO customers as well?

Speaker Change: And then just given how solid that order number wise can you walk us through what were some of the key products that drove that followed order and remind US where are you guys at in terms of ETF adoption within those CDMA customers as well.

Olivier Loeillot: Yeah. Hey, good morning, Rachel. Yeah, great questions. So I'd start by saying we've not seen really any customer trying to accelerate orders in the quarter. I mean, not a single one, in fact. That does include all CDMOs. You're right. We had a really great order intake growth from CDMO in Q1. The good news, it was really across the board. It was not only the large ones, but it was also the smaller ones. Also in terms of product line, it was very much across the entire portfolio. I mean, you've heard we had a very strong performance on the OPUS side, particularly with orders up more than 50%. As you know, CDMOs are our primary customers on the OPUS side, and we've seen really big orders coming from those guys in the first quarter. No real trend of accelerating anything.

Speaker Change: Yes.

Speaker Change: Good morning, Richa, yeah, great great questions. So I'd start by saying, we've not seen really any customer trying to accelerate orders in the quarter I mean, not a single one in fact on the that does include the <unk> you're right. We had a really great order intake rose from <unk> in quarter, one the good news it was really.

Speaker Change: Across the board it was not only the large one but it was also the smaller one and also in thermal product line. It was very much across the entire portfolio. I mean, you you felt like we had a very strong vessel months on the Opex side, particularly with orders up more than 50, Boston as you know see game with our primary customer.

Speaker Change: Arizona on the Opus side on the we've seen really big orders coming from those guys are in the first quarter. So no real trend of accelerating anything I don't think I've seen a single example, here and as far as ATF is concerned.

Olivier Loeillot: I don't think I've seen a single example here. As far as ATF is concerned, we mentioned previously that 9 of the top 10 CDMOs are already using ATF, and the number 10 is just in the process of implementing it as well. Obviously, that's another big driver of the CDMO order growth we've seen in Q1, which is on the ATF consumable, which otherwise did very well in Q1 as well.

Speaker Change: We mentioned previously that nine of the top 10 T. J malls are already using Ats and the number of pennies just in the process of implementing it as well. So obviously, that's another big driver of the of the Tdm order growth we've seen in quarter, one which is on the ACF consumable, which order wise, where we did very well in quarter, one as well.

Rachel Vatnsdal: Great. And then on my follow-up, I just wanted to dig into the tariff dynamics. So you mentioned really minimal impact to EPS, but just on the top line, you said that you could have up to low single-digit percent of revenue exposure. So can you walk us through the various buckets of offsets that you guys are seeing on that? How much of this is just going to be incremental pricing pass-through? And how much price do you really think that you can pass through in this environment? And then things like some of the manufacturing offsets as well help us bucket those different ways that you're mitigating the impact there. Thanks.

Speaker Change: Great and then on my follow up I, just wanted to dig into the tariffs. They name actually you mentioned, you know really minimal impact to EPS, but just on the top line. You said that you could add up to low single digit percent revenue exposure. So can you walk us through the various buckets of offsets that you guys are seeing on that how much of this is just going to be incremental pricing power.

Speaker Change: Rail and how much price do you really think that you can pass through in this environment and then things like some of the manufacturing offset this will help us bucket, there's different rates are mitigated the impact there.

Olivier Loeillot: Yeah, Rachel. Yeah, so just to address, I do think we believe that it's probably less than 1% sales increase that we would have from tariffs. And that would come through surcharges, right? Surcharges mostly that we would pass a one-for-one in terms of whenever we were incurring those costs to the customer. The other point there, there could be price increases. That's going to be more of a, "How do we offset the inflation that we see on raw materials that we're purchasing?" And so that ends up on the top line as well. But overall, between those two, we think that it's probably around that 1% of sales increase. That then would translate to probably less than 50 basis points of gross margin pressure because effectively, you're taking that sales without any cost, and it's a full pass-through.

Jason Garland: Yeah, Rachel. Yeah, so just to address, I do think we believe that it's probably less than 1% sales increase that we would have from tariffs. And that would come through surcharges, right? Surcharges mostly that we would pass a one-for-one in terms of whenever we were incurring those costs to the customer. The other point there, there could be price increases. That's going to be more of a, "How do we offset the inflation that we see on raw materials that we're purchasing?" And so that ends up on the top line as well. But overall, between those two, we think that it's probably around that 1% of sales increase. That then would translate to probably less than 50 basis points of gross margin pressure because effectively, you're taking that sales without any cost, and it's a full pass-through.

Speaker Change: Yes, Rachel yes, it just to address it I do think we believe that it's probably less than 1% sales increase that we would have from from tariffs and that would come through through surcharges surcharges, mostly that we would pass a one for one in terms of whenever we.

Speaker Change: We were incurring.

Speaker Change: Incurring those costs to the customer.

Speaker Change: The other point there there could be price increases that's going to be more of a how do we offset the inflation that we see on raw materials that we're purchasing.

Speaker Change: Then so that ends up on the top line as well, but overall between those two we think that it's probably around that 1% of sales increase.

Speaker Change: That then would translate to probably less than 50 bps of gross margin pressure.

Speaker Change: This is effectively you're taking that sales without any cost in it so thats a full pass through but on a dollar basis, we see the same kind of flat and that's why we said there was minimal EPS expenses, we absolutely are looking at are.

Olivier Loeillot: But on a dollar basis, we stayed kind of flat, and that's why we said there was minimal EPS expenses. We absolutely are looking at our manufacturing footprint. Like Olivier mentioned, 90% of what we sell in the US is either manufactured or exempt from duties. And so we've got really strong coverage within there. We've also been very clear that our bigger exposure would be if there's retaliatory duties put in place primarily in Europe, that that's where we would have a bigger exposure. Right now, that's not the case, right? The far majority of what we're selling into Europe is not subject to that. So that's the one that we would watch and take other actions on. But I know there's some questions why we didn't put it in the guide. Maybe I'd just address that now.

Jason Garland: But on a dollar basis, we stayed kind of flat, and that's why we said there was minimal EPS expenses. We absolutely are looking at our manufacturing footprint. Like Olivier mentioned, 90% of what we sell in the US is either manufactured or exempt from duties. And so we've got really strong coverage within there. We've also been very clear that our bigger exposure would be if there's retaliatory duties put in place primarily in Europe, that that's where we would have a bigger exposure. Right now, that's not the case, right? The far majority of what we're selling into Europe is not subject to that. So that's the one that we would watch and take other actions on. But I know there's some questions why we didn't put it in the guide. Maybe I'd just address that now.

Speaker Change: Manufacturing footprint like Olivier mentioned, 90% of what we sell in the U S is either manufactured or exempt from duties and so we've got really strong coverage within there.

Speaker Change: <unk> also been very clear that our bigger exposure would be is that if there's retaliatory duties.

Speaker Change: Put in place primarily in Europe that that's where we would have a bigger exposure right now thats not the case right the far majority of of.

Speaker Change: What we are selling into Europe is not subject to that so that's the one that we would watch and take other actions on but yeah. I know there's some question why we didn't put it in the guide maybe I'll just address that now I think for US there's just tariffs as well as FX really are moving targets and so thats why we didnt, specifically put them in the guy, but but also we've been chatter.

Olivier Loeillot: I think for us, there's just tariffs as well as FX really are moving targets. So that's why we didn't specifically put them in the guide. But also, we've been trying to be very clear and transparent about some sensitivities around that and tried to put a framework through this dialogue. So certainly, as things stabilize, we will, and we'll move forward from there.

Jason Garland: I think for us, there's just tariffs as well as FX really are moving targets. So that's why we didn't specifically put them in the guide. But also, we've been trying to be very clear and transparent about some sensitivities around that and tried to put a framework through this dialogue. So certainly, as things stabilize, we will, and we'll move forward from there.

Speaker Change: Very clear insurance apparent about some sensitivities around that tried to put a framework through this dialogue so suddenly as things stabilize we will and.

Speaker Change: And we'll move forward from there.

Operator: All right. The next question is from Dan Arias with Stifel. Please go ahead.

Speaker Change: Okay.

Speaker Change: The next question is from Dan Arias with Stifel. Please go ahead.

Dan Arias: Hey, good morning, guys. Thanks for the question. Olivier, I wanted to ask about emerging modalities and just how you feel about things there. Obviously, some high-profile news on certain drugs and then certain folks at the FDA, which has been less good. But it feels like the industry activity is still in a good place just when you think about active trials, etc. So you mentioned new modalities were up. You alluded to some of the challenges. When you combine all of that high-level and ground-level stuff that puts into the mix there, do you see cell and gene therapy on a trajectory that's accelerating, decelerating, or flat this year?

Dan Arias: Hi, Good morning, guys. Thanks for the question Olivia I wanted to ask about emerging modalities and just how you feel about things there obviously some high profile news on certain drugs and then certain folks at the FDA, which has been Alaska, but it feels like the industry activity is still in a good place just when you think about.

Dan Arias: Active trials et cetera. So you mentioned new modalities were up you alluded to some of the challenges when you combine all of that high level and ground level stuff that puts them. It takes there do you see cell and gene therapy on a trajectory that's accelerating decelerating or flat this year and when you think about that.

Dan Arias: When you think about the things taking place at the FDA and you talk to your partner companies, are you sensing any disruption from some of the changes that are taking place there that would rise to the level of being an issue for you guys? Thanks.

Dan Arias: Things, taking place with the FDA and you're talking to your partner companies are you sensing any disruption.

Dan Arias: From some of the changes that are taking place there that would rise to the level of being an issue for you guys.

Olivier Loeillot: Yeah. No, good morning, Dan. A lot of good questions. First of all, you're right. New modalities played out really well for us in Q1. Our sales were up mid-single digit. Our orders were up more than 20% again, which was very encouraging. But we're obviously monitoring all of the headlines. Maybe one thing to mention here is our biggest new modality customer represents less than 3% of our total revenue in 2024. And so I know we get asked a lot of questions about that. So that's probably something very important to mention. So as far as the overall environment is concerned, while there could be some short-term challenges, we remain very optimistic about the mid to long term.

Dan Arias: Yes, no good morning, Dan a lot of good questions. So first of all you're right New modality is played out really well for us in quarter. One our sales were up mid single digits orders were up more than 20, Boston again, so which was very encouraging which we're obviously monitoring all of the headlines maybe one thing too.

Dan Arias: Shown here is our biggest new modality customer represent less than three portion of our total revenue in 2024, and so I know we get asked a lot of questions about that so that's probably something very important to mention so as far as the overall environment is concerned what why was it could be some short term challenges we remain.

Dan Arias: We're very optimistic about the mid to long term and so far.

Olivier Loeillot: And so far, talking about changes at the FDA, we've not really heard any of our customers telling us at this stage they are slowing down or they are even canceling some specific trials that they were running on new modalities. So we remain very optimistic. Again, we are watching the news like anybody else. But so far, we don't see any reason to be worried about the future of new modalities at all, Daniel.

Dan Arias: Talking about changes that the FDA, we've not really heard of any of our customers telling us at this stage or they are slowing down or they are even cancelling some specific.

Dan Arias: Trials that we're running a new modality. So we remain very optimistic again, we are watching the news like anybody else, but so far we don't see any reason to be worried about so there is a future of new modality that all the dining room.

Dan Arias: Okay. Thanks so much.

Dan Arias: Okay. Thanks, so much.

Operator: We have our next question from Puneet Souda with Leerink Partners. Please go ahead.

Speaker Change: We have our next question from Puneet <unk> with Leerink partners. Please go ahead.

Puneet Souda: Yeah. Hi, Olivier and Jason. Thanks for the questions. And Jacob, I'm really looking forward to working with you. On the growth side, if I could ask, I mean, obviously, strong growth in the quarter, orders also strong across different end markets, customers, and modalities. But just could you elaborate if your mix of clinical versus commercial is changing as a result as you're getting specced into the commercial, maybe things are moving from phase two to phase three and maybe into commercial? Maybe could you elaborate a bit on that? Because I think the question here is sort of how sustainable is this growth? And given the questions we are getting on the clinical trials and the momentum on clinical trials versus what we're seeing in the commercial side of the business.

puneet: Yeah, Hi, Olivia Jason Thanks for the questions and Jacob.

Speaker Change: Looking forward to working with you.

Speaker Change: On the.

Speaker Change: Our growth side, if I could ask I mean, obviously the strong growth in the quarter orders also strong across different end markets and customers and modalities, but just could you elaborate.

Speaker Change: If your mix of clinical worsening commercial is changing as a result as youre getting into.

Speaker Change: The commercial maybe things are moving from phase two to phase three and maybe into commercial maybe could you elaborate a bit on that because of the growth you know I think the question here is.

Speaker Change: How sustainable is this growth.

Speaker Change: And given the questions we are getting on the clinical trials on the momentum on clinical trials versus what we're seeing in the commercial side of the business.

Olivier Loeillot: Yeah. Hey, good morning, Puneet. So great questions. We are still at 65/35 a year later. So in principle, you would say, "Oh, nothing has changed." But in fact, a lot has changed between 2024 and 2025 because, as you know, last year, we had this $30+ million of headwind coming from protein. And all of this was considered to be going into commercial drugs because that was mostly the OEM business we had with the two big guys. So considering we are still 35, it means that we have onboarded another $30+ million of business going into commercial drugs. So if nothing would have changed on the protein side, our split would be today 60/40.

puneet: Yeah, Hey, good morning, Puneet, so great question.

puneet: We are still at 65 35, a year later or so in principle, you would say nothing has changed but in fact, a lot has changed between 2024 and 2025, because as you know last year. We had these 30 plus million dollar headwind coming from protein and all of this was considered to be going into commercial.

puneet: Drugs, because that was mostly the OEM business, we had with the two big guys. So considering was still 35. It means that we have on boarded and all of those 30 plus million dollar of business going into commercial drag. So if nothing would have changed on the protein side all of our split would be two days 60 40, yes.

Olivier Loeillot: So yeah, I think I mentioned in previous call, that's a direction we're going to be going to, anywhere between 3 to 5 points of increase of commercial versus clinical probably during the next several years. So it's fair to say probably 4 to 5 years down the road, we should be around 50/50, something like that.

puneet: So yes, I think I mentioned in previous calls that's the direction, we're going to be going to.

puneet: Anywhere between three to five points of increase of commercial versus clinical probably extreme the next several years. So it's fair to say like probably a four to five years down the road, we should be around 50 50, something like that.

Puneet Souda: Got it. Okay. Helpful. And then on the 908 Devices acquisition, obviously, you have done well with the PAT technologies, with CTEC, SoloVPE, FlowVPX. Just trying to understand, how are you thinking about the commercial ramp here? What is needed in sales and marketing in order to accelerate a product such as REBEL into the marketplace? And what are some of the cost efforts that you're taking to sort of right-size the business while driving growth?

Speaker Change: Got it okay helpful and then on the 900 devices acquisition.

Speaker Change: Obviously, you all have done well with the <unk> technologies with C Tech solo V. P. So bps just trying to understand.

Speaker Change: No.

Speaker Change: How are you thinking about the commercial ramp here, what is needed and in sales and marketing in order to accelerate our products such as rubble into the marketplace.

Speaker Change: And what are some of the cost efforts that you're taking to.

Speaker Change: Sort of rightsize the business.

Speaker Change: While driving growth.

Olivier Loeillot: Yeah. So first of all, I start by saying the integration is moving exactly as scheduled. We spent quite a bit of time to make sure we have the two teams, CTEC plus 908 team, working together very closely. In fact, we are onboarding leaders that will have the overview of both businesses together because we feel it's going to be very important indeed to generate as many synergies as possible. And if I think about synergies, it's particularly on the R&D side. I mean, you know by now, the way we've been handling a lot of our acquisition is to not only really develop further the products those companies had in their portfolio, but really taking advantage of the rest of the portfolio we have to leverage across the board, the technologies from both sides.

Speaker Change: Yeah. So first of all I start by saying the integration is moving exactly as scheduled we we spent quite a bit of time to make sure. We have the two teams. He tag plus 908 team working together very closely in fact, we are onboarding of leaders that will have the overview of both businesses together because.

Speaker Change: We feel it's going to be very important indeed to generate as many synergies as possible and if I think about synergies, particularly on the R&D side. I mean, you would know by now there is a way we've been handling a lot of our accretion is to not only a really deep low pro those are products of those companies had in their portfolio, but we are taking it.

Speaker Change: Vantage of the rest of the portfolio, we have two labor ratio across the board the technologies from both sides. So we will go to a huge focus on R&D in particular, starting by adding more features to some of the.

Olivier Loeillot: So we've got a huge focus on R&D in particular, starting by adding more features to some of the products coming out of 908. And REBEL is a good example where we're going to launch a new version within the next quarter or so, but also adding more features to MAVERICK on the Raman side, and then making sure we leverage the strong technical team we got with this acquisition to help us also accelerating innovation on the CTEC side, partly with the mid-IR technology we acquired the rights from a few years ago. So a lot of work happening on the R&D side. And then on the commercial side, already the two teams are being incentivized to generate leads for the other part. And it's fair to assume those two teams are really going to be working very closely with each other.

Speaker Change: Products coming out of nine of weight on the robot is a good example of where we're going to launch a new version are within the next quarter or sofa, but also adding more features to Maverick County, you know Raymond side, and then making sure like we leverage she has a strong.

Speaker Change: The technical team we call. It so with this acquisition to help US also accelerating innovation on the <unk> side pocket with the meat I R technology, we acquired the rights from a few years ago or so so a lot of work happening on the on the R&D side and then on the commercial side or would he has the two teams are being incentivized to generate.

Speaker Change: <unk> for us for the yield of policy and it's fair to assume like those two teams are really going to be working very closely with each holder on and then finally from an operation point of view, we are just finalizing the move from the Massachusetts sites to our own site here in <unk>.

Olivier Loeillot: And then finally, from an operational point of view, we are just finalizing the move from the Massachusetts side to our own site here in Marlborough for the manufacturing of the vast majority of the equipment from 908, and where we are looking at other potential synergies for the future to improve the cost base here as well.

Speaker Change: For the manufacturing of the vast majority of the equipment from 908, and where are we are looking at all the potential synergies for the future to improve the cost base here as well.

Puneet Souda: Got it. Okay. Thank you.

Speaker Change: Got it okay. Thank you.

Operator: Our next question comes from Matt Larew with William Blair. Please go ahead.

Speaker Change: Our next question comes from Matt Larew with William Blair. Please go ahead.

[Analyst] (William Blair): Hey, guys. Thanks for the questions. This is Jacob on from Matt. So just want to talk a little bit more about trends by customer type, maybe just on small biotech specifically. I didn't hear much about that group in the prepared remarks. But I think last quarter, you said orders for this group grew 10% sequentially, perhaps signaling a leading indicator for return to growth later in the year. However, lots changed from a macro standpoint since you last reported, and lots changing by the day and minute. So maybe if you just provide some incremental color on what you're seeing with this customer type, what did orders look like in the quarter? Are you still optimistic this group will return to stable despite the macro?

Matt Larew: Hey, guys. Thanks for the questions. This is Jacob on from Matt. So just want to talk a little bit more about trends by customer type, maybe just on small biotech specifically. I didn't hear much about that group in the prepared remarks. But I think last quarter, you said orders for this group grew 10% sequentially, perhaps signaling a leading indicator for return to growth later in the year. However, lots changed from a macro standpoint since you last reported, and lots changing by the day and minute. So maybe if you just provide some incremental color on what you're seeing with this customer type, what did orders look like in the quarter? Are you still optimistic this group will return to stable despite the macro?

Speaker Change: Hey, guys. Thanks for the questions. This is Jacob on for Matt. So just wanted to talk a little bit more about trends by customer type.

Speaker Change: Maybe just on small biotech specifically I didn't hear much about that group in the prepared remarks, but I think last quarter. You said orders for this group grew 10% sequentially, perhaps signaling a leading indicator for return to growth later in the year.

Speaker Change: However, a lot has changed from a macro standpoint since you last reported and what's changing by the day and minutes. So maybe if you can just.

Speaker Change: Drive some incremental color on what you're seeing with this customer group or that orders look like in the quarter or are you still optimistic this group for returning to stable despite the macro.

Olivier Loeillot: Yep, Jacob. Yeah. So if you look at all customer segments, obviously, pharma did extremely well, record quarter for us. And when I say pharma, big pharma. CDMO did very well in terms of orders with orders up more than 40%. The only segment really that didn't do very well for us in Q1 was small biotech. And not so much from an order point of view where orders were pretty flat comparable to last year, but from a sales point of view where the sales to emerging market went down a high single digit. So yeah, we are still watching that segment carefully. It's becoming smaller and smaller for us. It's less than 10% of our total business. So it's not very material.

Speaker Change: Yep checkup here so.

Speaker Change: If you look at all customer segments, obviously pharma it is extremely well record quarter for us and when I say pharma big pharma CDM or did very well into my photos with orders up more than 40 persons. The only segment of <unk> that didn't do very well for us in quarter, one was small biotech and not so much from an order point of view, where all of those were <unk>.

Speaker Change: Flat comparable to last year, but from a sales point of view, where does the sales to emerging markets went down.

Speaker Change: High single digits. So yeah, we're still watching that segments carefully, it's becoming smaller and smaller for us it's less than 10 personal volatile business. So it's not very material, but as I mentioned in earlier calls I mean, it's a segment everybody's watching because the hassles that Sigma is important for the future of house of cards ecosystem.

Olivier Loeillot: But as I mentioned in earlier calls, I mean, it's a segment everybody's watching because the health of that segment is important for the future health of the ecosystem. And the best indicator is biotech funding, which unfortunately went down significantly in Q1. If you remember the trend last year, it went from $18 billion in Q1 to $15 billion and then $12 billion towards the end of the year. And then Q1 of this year was only at $8 billion. So unfortunately, biotech funding is not doing very well. So something everybody's watching carefully because we want to see that recovering faster than it does right now for sure.

Speaker Change: And the best indicator rates biotech funding of which <unk> went down significantly in quite a while on the if you remember a trend last year went from $18 billion in quarter one to 15.

Speaker Change: And then 12 billion towards the end of the year and then quarter. One of Zetia was only eight 8 billion. So <unk> funding is not doing very well so something everybody is watching carefully because we want to see that recovering faster as any dialogue right now for sure.

Speaker Change: Yeah.

Operator: The next question comes from Justin Bowers with Deutsche Bank. Please go ahead.

Speaker Change: The next question comes from Justin Bowers with Deutsche Bank. Please go ahead.

Puneet Souda: Hi. Good morning, everyone. Olivier, we've seen a lot of announcements from large biopharma over the last few weeks around onshoring or increasing CapEx plans. Just curious what your thoughts are on those announcements as it relates to the longer-term outlook and whether any of those announcements are leading to early discussions for you at this point.

Justin Bowers: Hi. Good morning, everyone. Olivier, we've seen a lot of announcements from large biopharma over the last few weeks around onshoring or increasing CapEx plans. Just curious what your thoughts are on those announcements as it relates to the longer-term outlook and whether any of those announcements are leading to early discussions for you at this point.

Justin Bowers: Hi, Good morning, everyone Olivier we've seen a lot of announcements from large biopharma over the last few weeks around <unk>.

Justin Bowers: <unk> or increasing Capex plans, just curious whats your thoughts are on those announcements as it relates to.

Justin Bowers: The longer term outlook and whether any of those announcements are leading to discussions for you at this point.

Olivier Loeillot: Yeah. Hey, good morning, Justin. Yeah. No, obviously, being an American company with a majority of manufacturing here in the US, we were watching all of these announcements in a very positive manner because obviously, we think this means extra business coming for all of the bioprocessing industry in the upcoming few years, and particularly, certainly for those companies who have got a very strong installed base in the US. And then most of these customers that have been making announcements are companies we've been working with very extensively. And as you know, we've been focusing a lot on key accounts during the last couple of years. And today, with most of these companies, we are selling across our entire portfolio. So we see that as a very positive tailwind for the next several years. And there are already a few discussions happening on the different front here.

Speaker Change: Yeah, Hey, good morning, Justine Yeah, No, obviously being an American company with a majority of manufacturing here in the U S. We were watching all of these announcements are in a very positive manner. Because obviously, we think FCC's means extra business coming for for all of the bio processing industry.

Speaker Change: In the upcoming a few euros and <unk> certainly for those companies who have got a very strong year installed base in the U S and so and then most of these customers that have been making announcements are companies. We've been working with a very extensively and as you know we've been focusing a lot on the on key accounts during the last couple.

Speaker Change: All of Europe, and today with most of this company we are selling.

Speaker Change: Across our entire portfolio. So we see that as a very positive tailwind for the next several years and is that already a few discussion happening.

Speaker Change: On a different role in here.

Puneet Souda: Thanks. Jason, just a quick one. How are you thinking about the margin cadence for the rest of the year?

Justin Bowers: Thanks. Jason, just a quick one. How are you thinking about the margin cadence for the rest of the year?

Speaker Change: And Jason just a quick one how are you thinking about the Martin margin cadence for the rest of the year.

Rachel Vatnsdal: For gross margin, so we highlighted the strength we had in Q1, but it was certainly helped by the mix of strong Proteins. And so we see that as the high point and then kind of going down. If you look at some of the implied guide for the rest of the year, you're kind of sitting at a 52-ish, maybe a little bit more. And that will kind of maybe pick up a little bit through the course of the quarters. But again, we were really happy with the performance we had. Even if you take out the mix, we had strong productivity, good volume leverage. The back half of that of the year, or even the second, third, and fourth quarter, we'll see mix flip the other way. So we actually kind of go to this hole we have to dig out of.

Jason Garland: For gross margin, so we highlighted the strength we had in Q1, but it was certainly helped by the mix of strong Proteins. And so we see that as the high point and then kind of going down. If you look at some of the implied guide for the rest of the year, you're kind of sitting at a 52-ish, maybe a little bit more. And that will kind of maybe pick up a little bit through the course of the quarters. But again, we were really happy with the performance we had. Even if you take out the mix, we had strong productivity, good volume leverage. The back half of that of the year, or even the second, third, and fourth quarter, we'll see mix flip the other way. So we actually kind of go to this hole we have to dig out of.

Speaker Change: For for gross margin so high.

Highlighted the strength, we had in first quarter, but it was certainly helped by.

Speaker Change: The mix of strong proteins.

Speaker Change: And so we see that as the high point, and then kind of doing that going down.

Speaker Change: If you look at some of the imply.

Speaker Change: For the rest of the year, you're kind of sitting at a 52 ish, maybe a little bit more and that will kind of maybe pick up a little bit through that through the course of the quarters, but.

Speaker Change: Again, we're really happy with the performance. We had you know even if you take out the mix, we had strong productivity good volume leverage.

Speaker Change: Back half of that of the year or even or even the third second third and fourth quarter, we'll see mix, but the other way. So we actually kind of go to this is this a whole we have to dig out of and again are able to do that through more productivity and volume leverage so really happy with the performance we're driving here at the gross margin level.

Rachel Vatnsdal: Again, we're able to do that through more productivity and volume leverage. So really happy with the performance we're driving here at the gross margin level.

Jason Garland: Again, we're able to do that through more productivity and volume leverage. So really happy with the performance we're driving here at the gross margin level.

Puneet Souda: Thanks.

Justin Bowers: Thanks.

Speaker Change: Thanks.

Operator: Our next question comes from Subbu Nambi with Guggenheim Securities. Please go ahead.

Cebu Namby: Our next question comes from Cebu Namby with Guggenheim Securities. Please go ahead.

Speaker Change: Okay.

Subbu Nambi: Hey, guys. Thank you for taking my questions. And Sondra, we'll miss you, Jacob. We are looking forward to working with you. My question is, because of the pharma tariffs, some pharma companies are talking about cutting their R&D. This is likely to impact the clinical pipeline of the drugs. How much of the guide today is driven by growth in the clinical pipeline for Repligen, or is this a wrong way to think about it for 2025, rather more long-term?

Speaker Change: Hey, guys. Thank you for taking my questions and contract the illness.

Speaker Change: They come to you and looking forward to working with you.

Speaker Change: My question is because of the pharma status. Some pharma companies are talking about cutting that R&D.

Speaker Change: This is likely to impact the clinical pipeline of Petrobras.

Speaker Change: Much of the guide today is driven by growth in our clinical pipeline full of Appalachian or is this it all the way to think about it for 2020, if I rather have more long term.

Olivier Loeillot: Hey, good morning, Subbu. Yeah. No, I mean, I think I mentioned earlier, we've not seen a single customer telling us, "Hey, bad news. We've decided to put that program on hold," or, "We're going to delay that specific clinical trial." In fact, I think clinical trial starts have been increasing nicely in Q1. So where biotech funding was not good, clinical trial start was pretty good in Q1. So we've not seen any of these customers telling us anything like that. And I know we are talking a lot about US situation, obviously. I mean, half of our business is still outside of the US as well, where everything is running absolutely, totally normally as well. So we don't really have any concern for the time being.

Speaker Change: Hey, good morning, so, but yeah, no I mean, I think I mentioned earlier, we have not seen a single customer telling us hey by news, we've decided to put that program on hold or we're going to delay that specific clinical trial. In fact, I think clinical trial starts have been increasing nicely in quarter. Once a wearable tech funding was.

Speaker Change: <unk> not good clinical trials start was pretty good in quarter. One so we've not seen any of these customers telling us anything like that in the end.

Speaker Change: And I know, we're talking a lot about U S. <unk>, obviously, I mean half of our business is still outside of the U S as well where everything is running absolutely totally normally as well. So we don't really have any concerns for the time being and also when you hear about it as a commissioner <unk>, who recently announced like.

Olivier Loeillot: And also, when you hear about the Commissioner Makary who recently announced he would like to speed up approval of drugs and so on, I know this is just an announcement, but this might just be another tailwind for the industry. So really, nothing we've heard from any of our customers so far that it makes us feel particularly worried at this stage, Subbu.

Speaker Change: I would like to speed up the approval of drugs and so on I know this is just an announcement that this might just be another tailwind for the industry. So are really not seeing wafer a trough for many of our customers. So far that it makes us feel particularly worried at this stage so boom.

Speaker Change: Yes.

Subbu Nambi: Thank you for that, Olivier. And then on NIH, you don't have a lot of exposure, but it would be good to hear if there is any impact of these NIH funding changes that are contemplated in the guidance. Or is this something that you think could have a longer-term impact on growth?

Speaker Change: Alright, Thank you for that and then on the NIH you don't have a lot of exposure, but it would be good to hear if there is any impact of these NIH funding changes that are contemplated in the guidance or is this something that you think could have a longer term impact on growth.

Olivier Loeillot: Yeah. No, it's a bit similar to the discussion we had earlier on small biotechs. For us, I mean, business that is NIH-dependent is less than 1%. So it's almost de minimis. But at the end of the day, yes, you want to see NIH funding increasing because in the longer term, I mean, you want to see new product development. No later than this morning, I was seeing statistics showing the number of products under development in each country around the world. And it's interesting to see, particularly in Asia, in a country like China, in a country like South Korea, I mean, the number of products under development is increasing tremendously. So we want to see a strong NIH, a strong product development environment here in the US as well because that's going to be important for the ecosystem in the mid- to long-term for sure.

Speaker Change: Yes. It is.

Speaker Change: Similar to the discussion we had earlier on the one small biotechs are poor for us I mean business that isn't NIH dependent is less than one person. So it's almost a de minimis, but at the end of the day. Yes, you you want to see NIH funding, increasing because in the longer term I mean, you want to see new product development.

Speaker Change: No later than this morning, I will say, we're seeing a statistics showing the number of products under development in each country around the world and it's interesting to see like a spotty in ACI and country like China in countries like South Korea, I mean, the number of our product underdeveloped money is increasing tremendously. So we want to see a strong NIH.

Speaker Change: Strong product development environment here in the U S as well because that's going to be important for the ecosystem you're in the mid to long term for sure.

Subbu Nambi: Thank you, guys.

Speaker Change: Thank you guys.

Operator: The next question comes from Brendan Smith with TD Cowen. Please go ahead.

Speaker Change: The next question comes from Brendan Smyth with Didi Cowen. Please go ahead.

[Analyst] (William Blair): Great. Thanks for taking the questions, guys, and congrats on the strong quarter. Maybe piggybacking a bit off of an earlier question, I wanted to actually ask how you're thinking about and if you expect any impact specifically from FDA's recent guidance looking to phase out animal testing for biologics. I guess I'm really just wondering if there's anything of note you've heard from any customers or thoughts on how some of this might play out for your customers and potential timing for some of the impacts, just given all the recent staffing cuts at the agency.

Brendan Smith: Great. Thanks for taking the questions, guys, and congrats on the strong quarter. Maybe piggybacking a bit off of an earlier question, I wanted to actually ask how you're thinking about and if you expect any impact specifically from FDA's recent guidance looking to phase out animal testing for biologics. I guess I'm really just wondering if there's anything of note you've heard from any customers or thoughts on how some of this might play out for your customers and potential timing for some of the impacts, just given all the recent staffing cuts at the agency.

Brendan Smyth: Great. Thanks for taking my questions guys and congrats on the strong quarter, maybe piggybacking a bit off.

Brendan Smyth: Earlier question I wanted to actually ask how youre thinking about and if you expect any impact specifically from Fda's recent guidance looking to phase out animal testing for biologics.

Brendan Smyth: Yes, I'm really just wondering if there's anything of note you've heard from any customers or thoughts on how some of it might play out for your customers.

Brendan Smyth: Potential timing for some of the impacts just given all the recent staffing cut at the agency.

Olivier Loeillot: Hey, Brendan. No, I have not heard anything at all on that side, to be honest with you. Maybe I've heard a few people suggesting this might accelerate somehow some of the clinical move from one phase to the other, but nothing really tangible at this stage.

Speaker Change: Hey, Brandon no I have not heard anything at all on that side to be honest with you may be at further few people, suggesting this might accelerate so somehow some of those clinical move from one phase to the older but nothing really tangible at this stage.

[Analyst] (William Blair): Okay. Got it. And then maybe just quickly, kind of regarding your manufacturing in the US versus ex-US, I guess I'm wondering how much flexibility you have to shift any of that ex-US manufacturing to any US facilities and if any of that is indexed to any particular segments more than others. I guess I'm really just wondering if there are any levers you can pull there should the EU tariff situation maybe materialize a bit more concretely.

Brendan Smith: Okay. Got it. And then maybe just quickly, kind of regarding your manufacturing in the US versus ex-US, I guess I'm wondering how much flexibility you have to shift any of that ex-US manufacturing to any US facilities and if any of that is indexed to any particular segments more than others. I guess I'm really just wondering if there are any levers you can pull there should the EU tariff situation maybe materialize a bit more concretely.

Brendan Smyth: Okay.

Brendan Smyth: Okay got it and then maybe just quickly kind of regarding your manufacturing U S versus ex U S.

Brendan Smyth: I guess I'm wondering how much flexibility you have to shift any of that ex U S manufacturing to any U S. Facility. Then if any of that is indexed to any particular segment more than others.

Brendan Smyth: I guess I'm really just wondering if there are any levers you can pull there should the EU tariff situation, maybe materialize a bit more concretely.

Olivier Loeillot: Yeah. So the answer is yes, there is leverage. I mean, we've got multiple sites both in the US, but also in Europe. If you look at our portfolio today, for several of our product lines, we already have dual manufacturing sites. That includes the OPUS columns. That includes fluid management. That includes, to a large extent, our systems as well. So for the remainder of the portfolio, we are indeed looking at opportunities to have dual-site manufacturing in the future, indeed, in case the tariff situation would degrade over the next few quarters. So absolutely, we're looking at that. And we could definitely leverage our strong installed base around the world at this stage. Yeah.

Brendan Smyth: Yeah. So the answer is yes, there is leverage I mean, we we've got a multiple sites both in the U S. But also in Europe. If you look at our portfolio today for several of our product line and we already have jewelry manufacturing site that includes the the opus columns that include the fluid management that include to a large extent.

Brendan Smyth: Our systems as well so for the remainder of the portfolio. We are indeed looking at opportunities to have Joel siding manufacturing in the future and indeed in case, there is a tariff situation with degrade over over the next few quarters. So absolutely. We're looking at that and we could definitely labor HR a strong install base.

Brendan Smyth: Around the world at this AGM.

[Analyst] (William Blair): Okay. Great. Thank you.

Brendan Smith: Okay. Great. Thank you.

Brendan Smyth: Okay, great. Thank you.

Operator: The next question comes from Doug Schenkel with Wolfe Research. Please go ahead.

Speaker Change: The next question comes from Doug Schenkel with Wolfe Research. Please go ahead.

[Analyst] (William Blair): Hey, good morning. Thank you for taking the questions. So one on guidance and then one on positioning outside the US given the current policy situation. So on guidance, just a clarification, you are now guiding organic actually, it says you are guiding non-COVID revenue growth to 11.5% to 15.5%. That's the growth rate you've guided to. Last quarter, you guided non-COVID organic revenue growth to 10% to 14%. So I'm just trying to see if that's apples to apples and if that is organic to organic specifically. Because if so, that would seem to be a positive sign on your view of fundamental non-COVID demand. So I just want to clarify that. We've got a couple of questions there. So that's my first question. The second is really kind of acknowledging something that you talked about last quarter where you talked about adding some roles in Asia.

Doug Schenkel: Hey, good morning. Thank you for taking the questions. So one on guidance and then one on positioning outside the US given the current policy situation. So on guidance, just a clarification, you are now guiding organic actually, it says you are guiding non-COVID revenue growth to 11.5% to 15.5%. That's the growth rate you've guided to. Last quarter, you guided non-COVID organic revenue growth to 10% to 14%. So I'm just trying to see if that's apples to apples and if that is organic to organic specifically. Because if so, that would seem to be a positive sign on your view of fundamental non-COVID demand. So I just want to clarify that. We've got a couple of questions there. So that's my first question. The second is really kind of acknowledging something that you talked about last quarter where you talked about adding some roles in Asia.

Doug Schenkel: Hey, good morning, Thank you for taking the questions. So one on guidance and then one on positioning outside the U S. Given the current.

Doug Schenkel: Policy situation so on guidance just a clarification.

Speaker Change: You're now guiding organic actually it says you're guiding non COVID-19 revenue growth to 11, and a half of 15.5%. That's the growth rate you've guided to last quarter, you guided non COVID-19 organic revenue growth to 10% to 14%. So I'm just trying to see if that's a.

Doug Schenkel: <unk> to apples.

Speaker Change: And if that is organic to organic specifically because if so that would seem to be a positive sign on your view of fundamental non COVID-19 demand I'm, sorry, I just want to clarify that we've got a couple of questions. There. So that's my first question.

Second is you know.

Speaker Change: Really kind of acknowledging something that you talked about last quarter, where you talked about adding some roles in Asia.

[Analyst] (William Blair): I'm wondering if you'd be willing to speak a little bit more about where you've been adding, what the follow-through has been. And really, I'm focused on this because it could turn out that this is really well-timed as it may really improve your positioning to take advantage of customer movements out of China into other Asian locations. Thank you.

Doug Schenkel: I'm wondering if you'd be willing to speak a little bit more about where you've been adding, what the follow-through has been. And really, I'm focused on this because it could turn out that this is really well-timed as it may really improve your positioning to take advantage of customer movements out of China into other Asian locations. Thank you.

Speaker Change: I'm wondering if you'd be willing to speak a little bit more about where have you been adding what the follow through has been.

Speaker Change: And really I'm focused on this because it could turn out that this is really well timed as it made really improved your positioning to take advantage of customer customer movements out of China into other Asian locations. Thank you.

Olivier Loeillot: Excellent, Doug. So let me start with the second question on Asia, and then Jason will take care of the first question. So yes, you're right. I've been talking quite a bit about Asia. I spent myself quite a bit of time living in the region over there. So it's a region that I know has got huge potential for us. But obviously, we've gone through a lot of changes over the last several years. So let me start with China. China, obviously, has not been doing very well for us now for the last few quarters.

Doug Schenkel: Excellent Doug So let me start with the second question on Asia and then.

Speaker Change: Jayson, we'll take care of the first question so yeah.

Speaker Change: Yes, you're right I've been talking quite a bit Volta Asia I spend my myself quite a bit of time living in the region over there. So it's a region that I know has got huge potential for us, but obviously, we've gone through a lot of changes over the last several eurozone. So let me start with China.

Speaker Change: China, obviously has not been doing very well for us now for the last few quarters. We just on boarded a global Asia leader, who will just relocated to China, Singaporean gentleman, who just relocated to China and who is really just building our new strategy for China because of the way to win in China in the upcoming fuels is going to be totally different from the way.

Olivier Loeillot: We just onboarded a global Asia leader who just relocated to China, a Singaporean gentleman who just relocated to China and who is really just building our new strategy for China because the way to win in China in the upcoming few years is going to be totally different from the way you were winning before COVID. We also just hired a leader to run China being the GM reporting at Global Asia Leader. We are literally going to do a report out of the strat in the next few weeks. And we've got a very ambitious plan because I'm convinced the China market will start growing again very nicely, probably from 2026 onwards. And we want to be a big player there. Outside of China, I mean, the rest has been doing very well for us.

Speaker Change: Youre winning default Kavita. We also just hired a leader to run China billions of GM reporting said Global Asia leader, we are literally going to do a report out of those tracks in the next few weeks and we've got very ambitious plan because I'm convinced the China market will start growing again very nicely probably from 2026.

Speaker Change: Don't work and we want to be a big players era outside of China. I mean, the rest has been doing very well for us and obviously everybody knows how dynamic a country like South Korea, Ara, but also to a large extent chat pan in them. The most recent.

Olivier Loeillot: Obviously, everybody knows how dynamic countries like South Korea are, but also to a large extent, Japan in the most recent past as well. So here again as well, we are working on very specific strategies, and we have got a lot of ambition to become much bigger in those two countries in particular. I would just add Singapore as well because Singapore is also a very, very important market for us. But I'll hand over back to Jason on the guidance question here.

Speaker Change: Past as well so here again as well while walking on very specific strategies and we have got a lot of ambition to become much bigger in those two countries in particular I would just add Singapore as well as Singapore is also a very very important market for us.

Jayson: I'll hand over back to Jayson on the guidance question here it is.

Rachel Vatnsdal: It's a good question. It is a new metric, and we did it because we think it's a better view of how we're performing. This quarter, it's fully organic, meaning and the last one was not, meaning last quarter, we excluded M&A and COVID, but we didn't exclude the impact of FX. And now this quarter, we are excluding the impact of FX. So again, I know there's a lot of different nomenclatures. Organic for us is the exclusion of both M&A and FX. So given just the FX volatility that we're seeing, we had $2 million of pressure, almost a point and a half of pressure at the growth rate level in the quarter. We felt like taking acquisition or sorry, FX impact in addition to acquisition would be the most sort of apples to apples view of our performance.

Jason Garland: It's a good question. It is a new metric, and we did it because we think it's a better view of how we're performing. This quarter, it's fully organic, meaning and the last one was not, meaning last quarter, we excluded M&A and COVID, but we didn't exclude the impact of FX. And now this quarter, we are excluding the impact of FX. So again, I know there's a lot of different nomenclatures. Organic for us is the exclusion of both M&A and FX. So given just the FX volatility that we're seeing, we had $2 million of pressure, almost a point and a half of pressure at the growth rate level in the quarter. We felt like taking acquisition or sorry, FX impact in addition to acquisition would be the most sort of apples to apples view of our performance.

Good question. It is a new metric and we did it because we think it's a better view of our performing the last.

Jayson: This one is this quarter its fully organic meaning in the last one was not meaning last quarter, we excluded M&A and COVID-19, but we didn't exclude the impact of FX and now this quarter. We are excluding the impact of FX. So again I know, there's a lot of different nomenclature is organic for us as is the exclusion.

Jayson: Both M&A and FX, so given just the FX volatility that we're seeing we had.

Jayson: $2 million of pressure at the point and a half of pressure at the at the growth rate level in the quarter.

Jayson: We felt like taking acquisition or sorry, FX impact. In addition to the acquisition will be the most sort of apples to apples view of our performance and so so that is not a change in overall, what we looked at from our performance, but we thought we would clarify that.

Rachel Vatnsdal: And so that is not a change in overall what we looked at from a performance, but we thought we'd clarify that. Does that answer your question, though?

Jason Garland: And so that is not a change in overall what we looked at from a performance, but we thought we'd clarify that. Does that answer your question, though?

Jayson: Is that okay.

[Analyst] (William Blair): I think so. And I know we can follow up after, but the bottom line is strong momentum, but really, this isn't a change in view, just a continuation in view in terms of how you guys are seeing the business today, at least from an organic standpoint. Is that fair, Jason?

Doug Schenkel: I think so. And I know we can follow up after, but the bottom line is strong momentum, but really, this isn't a change in view, just a continuation in view in terms of how you guys are seeing the business today, at least from an organic standpoint. Is that fair, Jason?

Jayson: I think so and I know, we can follow up after but the bottom line is strong momentum, but really this isn't this isn't a change in view or just a continuation in view in terms of how you guys are seeing the business today at least from an organic standpoint is that is that fair trade.

Rachel Vatnsdal: Yeah. Exactly. No change to organic, meaning no FX impact and acquisition and taking out COVID. All that's the same. We're trying to isolate. There's so many moving pieces, right, in terms of impacts. We're going to have to talk X tariffs, X this, and that, right? And so we're trying to really isolate it down or just a few of the bit.

Jason Garland: Yeah. Exactly. No change to organic, meaning no FX impact and acquisition and taking out COVID. All that's the same. We're trying to isolate. There's so many moving pieces, right, in terms of impacts. We're going to have to talk X tariffs, X this, and that, right? And so we're trying to really isolate it down or just a few of the bit.

Jayson: Exactly no change to organic meaning.

Jayson: FX impact and acquisition and taking out Covid all of that is the same we're trying to isolate there's so many moving pieces right in terms of impact.

Jayson: At the top at Terex X you know this and that right and so we've isolated that.

Jayson: Alright.

[Analyst] (William Blair): Just a few moving parts. Okay. Thank you very much.

Doug Schenkel: Just a few moving parts. Okay. Thank you very much.

Jayson: A few moving parts okay. Thank you very much alright. Thank.

Rachel Vatnsdal: All right. Thanks for the question.

Jason Garland: All right. Thanks for the question.

Olivier Loeillot: Thanks, Doug.

Thanks for the question Thanks, Doug.

Jayson: Okay.

Operator: The next question is from Matt Stanton with Jefferies. Please go ahead.

Speaker Change: The next question is from Matt Stanton with Jefferies. Please go ahead.

Matt Stanton: Thanks. Maybe one on OPUS. I think Olivier, you talked about larger-scale columns driving some demand here. And Q1 as well as really nice order strength. I think you set up 50% in the quarter and talked about some adoption at large pharma. That's traditionally been more CDMO. You just talked about what's driving the uptick at large pharma, why now. Obviously, OPUS has been around for a while, and just the durability of these demand and order trends as they maybe look to adopt it a bit more over time. Thank you.

Matt Stanton: Thanks, maybe one on Opus I think Larry you talked about larger scale columns driving some demand here at <unk> as well as really nice order strength set up 50% in the quarter.

Speaker Change: And talked about some adoption at large pharma that's traditionally been more GMO could you just talk about what's driving the uptick at large pharma why why now obviously <unk> has been around for a while and just the durability of these demand and order trends as they maybe look to adopt it a bit more over time. Thank you.

Olivier Loeillot: Yeah. So good question. Morning, Matt. So I'll start maybe with the scale because that was your first question. Yeah. We've indeed seen a shift toward larger-scale OPUS columns in Q1, which we like quite a bit, obviously. And we try to understand where this might be coming from. I mean, as you know very well, there has been a lot of single-use manufacturing plant being built over the last several years, and particularly at the 2,000-liter scale, which was the highest scale before 5,000-liter came recently. So a lot of these plants really started to run at full speed during maybe the last one or two years. And for this type of large-scale single-use manufacturing plant, you want to use single-use columns. You want to use prepacked columns.

Yeah. So good question morning, Matt So.

Speaker Change: I'll start maybe with the scale because thats for your first question, yes, we indeed seen those shifts toward larger scale opus columns in quarter, one, which we like quite a bit obviously and we try to understand where this might be coming from I mean, as you know very well that there has been a lot of things.

Speaker Change: Single use manufacturing plant being built over the last several years and particularly at the 2000 liter scale, which is which was the highest escape before 5000 Nieto came recently so a lot of these plants really started to run at full speed during maybe the last one or two years and for these type of large scale single use.

Any factoring plan you want to use single use columns, you'll want to pre packed columns. So we think that's probably one of the reason why we've seen a shift towards more of the larger scale opus column over the last quarter or so and then in terms of using it as a pharma business as we managed to grab I mean, as you know CDM Jose Love Opus column speakers for them.

Olivier Loeillot: So we think that's probably one of the reasons why we've seen a shift towards more of the larger-scale OPUS column over the last quarter or so. And then in terms of the pharma businesses, we managed to grab, I mean, as you know, CDMOs; they love OPUS columns because for them, it's all about having the abilities to switch very fast from one customer to the other, and having those pre-packed columns on the shelves enables them to do that very fast. So for us, we've been really pushing more on the pharma side because we know these guys were probably a bit more reluctant to use pre-packed column. And we had two pharma wins in Q1 that we think are going to be staying now for the next several quarters. And one of them, we being with a really big pharma company.

Speaker Change: Then it's all about having the ability to switch very fast from one customer to the older on having those pre packed columns of shelves enables them to do that very fast so for us we've been really pushing more on the pharma side, because we know like as these guys were probably a bit more reluctant to use pre packed column and we had the two pharma wins in <unk>.

Speaker Change: Quarter, one that we think are going to be is taking now for the next several quarters and one of them being with a really big pharma companies. So that was a very significant win for us. So we were hoping to see more coming we have got a big commercial a false or focus on pharma for our Prepacked column right now.

Olivier Loeillot: That was a very significant win for us. We were hoping to see more coming. We've got a big commercial effort focused on pharma for prepacked column right now.

Matt Stanton: Thanks. And maybe just one on the innovation engine. You launched the first resin out of Tantti a few months ago. Just any early feedback there? And then if you just remind us of the pipeline there, I think you were hopeful to get some other product out from Tantti once it was integrated this year. And then Metenova sounds like early indications on the new mixer launch a few weeks ago going well on demos and orders. Can you also just remind us of the opportunity around the bag strategy with Metenova as you get some of those new mixers out and look to tag on the consumables on the back end? Thank you.

Speaker Change: Thanks, and maybe just one on the innovation engine. When you launch the first regimen auto talk to you a few months ago, just any early feedback there and then if you just remind us of the pipeline that you are hopeful to get some other product out from from Tom do you want them integrated this year and then in <unk>. It sounds like early indications on the new mixture launch a few weeks ago going well on.

Speaker Change: Demos in orders can you also just remind us of.

Speaker Change: The opportunity around the bag strategy with with meta know or as you get some of those new mixtures out and look to tag on the consumables on the backend. Thank you.

Olivier Loeillot: Yeah. So starting with resins, I mean, we are really delighted how Q1 played out. And you might remember I mentioned how strategy was now to become really very independent and have our destiny in our hands for the future. And we start to collect the fruits of it. I mean, I'll start by just clarifying the collaboration with Purolite is doing very well. We are delighted to work hand in hand. We had multiple meetings with customers together, and we have a lot of great traction. And that's for monoclonal antibody.

Speaker Change: Yes, so starting with <unk>, we are really delighted how quarter, one played out and you might remember I mentioned.

Speaker Change: Our strategy was not to become really they are independent and then have all of these teen all hands for the future and we start to collect the fruits of its I mean I'll start by just clarifying likes of collaborations with pure <unk> is doing very well we are delighted to work hand in hand, we had multiple are meeting with customers together and we have a lot of great traction.

Speaker Change: And that formula grow antibody and outside of monoclonal, indeed, where we are developing and launching our own products.

Olivier Loeillot: Outside of monoclonal, indeed, where we are developing and launching our own products, one of the reasons why Q1 really outperformed across the board was because of some of our own chromatography resins that were really a big success for us in Q1, including the double-stranded RNA, which launch has been doing very well as well. So really great traction. We're going to launch at least 2, if not 3 new resins over the next few quarters. So we are extremely optimistic about the traction we have on the protein/resin side. And then in terms of the mixers, yes, you're right. We just launched our single-use mixers at INTERPHEX beginning of April. A lot of very positive feedback. Again, it's not like a me-too product because there are so many companies in the field.

Speaker Change: One of the reason why quarter, one really outperformed across the board will because of some of our own chromatography resin that we're a really big success for us in quarter, one, including as a double stranded RNA, which launch has been doing very well as well so really great traction we're going to launch at least two if not three new raisings.

Speaker Change: Over the next few quarters. So we're extremely optimistic about the traction we have on the on the protein slash rates inside them and then in terms of of the mixes yes, Youre right. We just launched our scenarios mixes are at informix beginning of April a lot of very positive feedback again, it's not like a me too product because there are so many.

Olivier Loeillot: We are really using the technology from Metenova, which we know, because we got that feedback on the stainless steel side, is considered to be the best mixing technology by far. So now people who have been using our mixers with stainless steel technology are delighted to see us coming with a single-use solution because they know the quality of mixing is just better than anything else on the market today. So we are just going to demo equipment probably in Q2 and Q3. And we'll start collecting orders towards the second half of this year, and we should start to see sales happening in 2026 and beyond here.

Speaker Change: Companies in the field, we are really using the technology from May say, Nova, which we know because we got that feedback on the stainless steel side is considered to be the best mixing technology by far so now people who have been using our mixes with stainless steel technology are delighted to see us coming with a single solution because they know the quality of mixing is just.

Speaker Change: Better than anything else on the market today. So we are just.

Speaker Change: Going to <unk> will see equipment, probably in quarter two quarter, three and we'll start collecting all those towards the second half of this year and we should start to see those sales happening in 2026 and beyond here.

Matt Stanton: Super. Thank you.

Speaker Change: Thank you.

Operator: The next question is from Dan Leonard with UBS. Please go ahead.

Dan Leonard: The next question is from Dan Leonard with UBS. Please go ahead.

Dan Leonard: Thanks very much. My first question is a quick cleanup. Is it possible to quantify the timing benefits in Proteins in the quarter?

Dan Leonard: Thanks very much my first question is a quick clean up is it possible to quantify the timing benefits in proteins in the quarter.

Rachel Vatnsdal: The benefit on what, Dan?

Jason Garland: The benefit on what, Dan?

Dan Leonard: The benefit on.

What.

Dan Leonard: Yeah. You mentioned, Jason, that there was timing that contributed to your strong year-on-year growth in proteins. I was curious if you can quantify the size of whatever moved into Q1 that you weren't expecting.

Dan Leonard: Yes, you mentioned, Jason that there was a timing that contributed to your strong year on year growth in protein. So I was curious if you can quantify the size of whatever moved into Q1 that you werent expecting.

Rachel Vatnsdal: No, no. And the total amount now, it was upside to the quarter from our expectation, but we'll see that sort of unwind through the course of the year, if you will. And that's why we end up with the same overall growth rate expectation for Proteins for the year.

Jason Garland: No, no. And the total amount now, it was upside to the quarter from our expectation, but we'll see that sort of unwind through the course of the year, if you will. And that's why we end up with the same overall growth rate expectation for Proteins for the year.

Dan Leonard: No no.

Dan Leonard: The total amount now.

Dan Leonard: It was a upside to the quarter from our expectation, but we will see that sort of unwind through the course of the year. If you will and Thats why we ended up with the same overall.

Dan Leonard: Growth rate expectation for proteins and for the year.

Olivier Loeillot: Yeah. Guidance stayed at 10% to 15% for the full year-on-protein, Dan. So no changes on that side.

Dan Leonard: Guidance stays at 10% to 15% for the full year on protein Dan So no changes on that side.

Dan Leonard: Okay. At a higher level, Olivier, how would you characterize your visibility nowadays now that you've got a couple of quarters of double-digit growth under your belt? How confident are you that this demand is run rate versus any restocking dynamic?

Speaker Change: Okay and at a higher level, you know Olivier how would you characterize your visibility nowadays now that you've got a couple of quarters of double digit growth under your belt. How confident are you that this demand is run rate versus any restocking dynamic.

Olivier Loeillot: Yeah. No, of course, as you know, we are tracking a lot of different parameters to really have maximum visibility. Well, one I didn't mention so far is our funnel of opportunities above 50% [that] ended up being higher by 30% at the end of Q1 than a year ago. And that's a very big indicator for us because, as you know, we typically have about 4 months of backlog in the pocket. So you want to have a very strong funnel as well because this is what kind of gets you very confident about growth coming for the next several quarters beyond the next 2 quarters. So we have all indicators look really good for us at this stage.

Speaker Change: Yes, no of course as you know we're tracking a lot of different parameters to rehab Maximo <unk> will one one I didn't mention so far is our funnel of opportunities of both 50, Boston ended up being higher by 30% at the end of quarter, one than a year ago, and that's a very big indicator for us.

Speaker Change: Because as you know we typically are.

Speaker Change: We have about four months of backlog in the pocket. So you want to have a very strong funnel as well because this is what kind of gets you very confident about growth coming for the next several quarters beyond the next two quarters. So we have all indicators look really good for us at this stage on the and I think all of the initiatives, we've taken commercially and from a product launch.

Olivier Loeillot: I think all of the initiatives we've taken commercially and from a product launch point of view are really coming to fruition right now, which is why we were very confident about the year.

Speaker Change: Point of view are really coming to fruition right now which is why we were very confident about the year.

Dan Leonard: Okay. Thank you.

Speaker Change: Okay. Thank you.

Operator: Thank you. We will now conclude our question-and-answer session. I would like to turn the conference back over to Olivier Loeillot for any closing remarks.

Speaker Change: Thank you.

Speaker Change: We will now conclude our question and answer session.

Olivier: I would like to turn the conference back over to Olivier for any closing remarks.

Olivier Loeillot: Well, thank you, everybody, for joining us today. We are obviously very pleased with the start of 2025. I would like to really give a special thanks to our entire Repligen colleagues and team for helping during this very strong growth in Q1. As you all know, we are very focused on our strategic plan, and we look forward to speaking with everyone again very soon. Have a good day.

Olivier: Well. Thank you everybody for joining us today here. We are obviously very pleased with the start of 2025 I would like to really.

Olivier: Give a special thanks to our <unk> colleagues on team for helping during these very strong growth in quarter. One as you. All know we are very focused on our strategic plan and we look forward to speaking with everyone again very soon have a good day.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Olivier: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Olivier: Yeah.

Olivier: [music].

Olivier: Okay.

Olivier: Yeah.

Olivier: [music].

Olivier: Yeah.

Olivier: [music].

Olivier: Okay.

Olivier: [music].

Olivier: Okay.

Olivier: Yeah.

Olivier: Okay.

Olivier: [music].

Olivier: Okay.

Olivier: [music].

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