Repligen Corporation (RGEN) Earnings Call Transcript & Summary

All right. Great. Thank you, everybody, for joining us today. My name is Casey Woodring from the Life Science Tools and Diagnostics team here at JPMorgan. Pleased to be joined by the management team of Repligen. We'll do the corporate presentation first and then leave time for Q&A. So with that, Olivier, over to you.

Thank you so much, Casey. Thanks for coming, and looking forward to telling you a bit more about Repligen. The usual safe harbor statement. So for those of you who are not completely familiar with the company, we are headquartered in Walsam, Massachusetts. We are really a pure bioprocessing play, about 2,000 employees in total. And for the vast majority of our portfolio, we've got dual manufacturing in U.S. and in Europe. And finally, at the midpoint of our guidance in 2025, we were at [ USD 733 million ] in sales. What's our vision? We want to be the global innovation, and you will hear me mentioning innovation several times today, leader in bioprocessing with a very extensive portfolio of very differentiated data-driven solutions across most therapeutical modalities. So there are a couple of takeaways, and I'm going to start with that so that you remember them right at the beginning. The first one, again, is innovation. So we've been really playing on that side for the last 10 years, and we are playing in a pretty large bioprocessing market, as you know, and we play against very big competitors. So for us, really, the way to win is via launching those very breakthrough innovation and really supporting customers in their path towards more yield, better cost structure and so on. So really innovation at the core of everything. We have a very diversified portfolio of products. I mean I'm sure many of you start to understand it. I mean, last year was really a showcase where we've had really performance across the entire portfolio. And we want to say we have got one of the broadest portfolio really in the industry today. And the good news is we've got multiple levers to keep on outpacing industry growth. I'll talk about that quite extensively later on. I have to mention a few here. Obviously, those breakthrough solutions we have. But beyond that, also, we are still very much clinical versus commercial. And we also have a very, very, very, very solid sales strategy on the key account side that has really enabled us to open also at multiple big accounts, and we're just really at the beginning of the journey. And finally, definitely some great successful with new modalities, and we'll talk about that quite a bit. We want to expand margin. I mean we are absolutely focused and Jason and I with the company for about 2 years. It's really at the core of our hold every day, and we've done a pretty good job last year, but we're on a path to do even better over the next 5 years and reach 30% EBITDA margin in the next 5 years. And finally, we are very heavy on delivering on what we say we're going to be doing. We have 5 strategic properties in '25. We've delivered on each of them. And we decided to kind of keep almost the same for 2026. because we think we are in a pretty long-term type of growth journey here, and there is no reason to change those priorities, but we've done multiple progress over the last 12 months here. So what is giving us right to win again is innovation? So when you look at our portfolio, we've got the 4 main franchises, filtration, rhamatography, analytics and proteins. In each of these different product lines, we've got really very innovative products and innovative meaning like we estimated almost 80% of our portfolio today, we don't really have competition. And this innovation was always focused on enabling better yield, productivity gain for our customers and also enabling our customers to go faster to market. We've got the advantage of the size. We're not that big, but pretty flexible. So we are very nimble, very customer centric. I mean, that's really part of our DNA in the company and we are really obsessed to meet our customer needs. Growth portfolio. I'm going to show you in a minute what it's all about. I just want to say a few words to start with on digitization. We know it's at the center of the preoccupation of our customers right now. We seem to have a really good chance with our PAT technologies, but we've got a path forward to really capitalize on that and we lead the pack in terms of the digitization journey of our customers. So we're a fast-growing company. I mean we took 2019 because that was before COVID and then '25, which was last year because as we all know, there was a lot of noise during COVID. So we thought it was quite impressive to see that when you exclude the cabin noise in between, we had a CAGR of about 18% during the last 6 years. And then when you look at the total addressable market, this is even more stunning in a way that our total addressable market was only USD 3 billion 6 years ago, and now we're up to certain -- so if you make the calculation, midpoint, $733 million, we are about only 2% of the market. So do we have runway? Yes, we do. We have a lot, a lot of runway and we are very happy to have that huge total addressable market opportunities because with the breadth of the portfolio we have, we know we've got incredible future in front of us. So what is this broad diversified offering. I think this slide is probably the one I like the most. It shows you really how we've been evolving over the last 10 years. Look on the left side customer-wise, 10 years ago, our top 3 customers were 2/3 of our business. Last year, our top 10 customers was 1/3 of our business. So when you talk about diversification, I mean it's a fact like we've done an amazing job to really reach out to many more customers and probably big pharmas and big CDMOs as well. But from a franchise point of view as well, it's quite stunning to see like 10 years ago, we were almost 3/4 of our business in protein, a little bit in filtration and come. There's a shift toward more filtration with multiple acquisitions and strengthen chromatography business and now a bigger play into analytics has enabled us to also have a much more diversified portfolio of product today. And then finally, looking at modalities. We went from being heavy, heavy, heavy on monoclonal antibody, was still heavy, heavy, but a bit less. We are doing about 16% of our sales in new modalities and we'll talk a little bit about that, of course, later on as well. So really a very diversified portfolio of products. And that's on a picture. What's better than a picture. When you think about a full workflow that is being utilized by our customers, we pretty much have the main buckets. If I want to really simplify, we've got 3 main gaps, borates cell culture media and viral filters. But in every other bucket, we do have a play today, a smaller or bigger one, but we are really happy that we are absolutely can support customers, partly they have specific needs of custom solution in the different buckets today. What about the multiple levers to outpace industry growth? So we like to create solutions. So innovation, again, I mean and innovation technology really creates new markets. And that's why we like the way we operate in that environment is we're not just coming to compete with big guys who are doing amazing things are here to just come and try to create new solutions create new market segments that are going to be add up to what exists already on the market. Digitization, I talked a little bit about already, it's a perfect example where we are coming now with brand-new PAT solutions to enable our customers to be faster and more efficient. And we have a real track record in M&A. What I think Tony and the team have done so well in the past by all of this acquisition was really to add technologies that were somewhat next to some of the other technology we had and that we could not only embed within our own portfolio, but make -- create products that were even better or that were even newer than what this company we are bringing us. And the best example we had is the acquisition of Meta Nova 2 years ago, which was stainless steel mixing technology based on magnetic steering. And now we launch our own single-use mixers, which we think have the best technology in the industry right now. So we like to create solutions. Increasing our positions, of course, I mean, we are playing into that big market. So we're trying to make sure we're opening more doors. And that's where really commercial excellence is of essence. And we've got an incredible commercial organization that has enabled us to really penetrate big pharmas and CDMOs really very largely over the last several years. Here again, we are really at the beginning of the journey. You'll see in one of the next slides that we are sitting about 2.5x more products for each of these accounts than we were 5 years ago. But in many cases, we are just starting to sell those products. Meaning like the runway we have for the next 10 years is going to be really very, very big with all of these customers. We have a sales team that is really not capable to cross-sell this portfolio of products. And if I look from a geographical point of view, we're going to have a focus on Asia because we are a little bit subpar today in Asia. And finally, leveraging the mix. I mean, we're still very much clinical, even though slowly, but surely, we are moving towards more commercial products. I mean, the split has changed a little bit last year. But obviously, the more clinical you're supporting the more tailwind you get because every time a product makes it to the market, you're getting obviously a significant increase of volume demand from your customers. And finally, we've got a portfolio that's really well suited for new modalities. So we all know there has been some headwind in 2025 which is one of the reasons why we're particularly happy about the performance we had because even with those headwinds, and I would never have beat in 2025, new modality would be potentially diluting our growth. But this did happen. We are still extremely positive about it and know that this is going to come back. probably going to take another year or so, but we are absolutely convinced that's going to be accretive to growth from 2027 onwards. So that's about some of the levers we have to our I just quickly go through that slide. We estimate about 80% of our portfolio is really very differentiated just to talk about product line like ATF, product line like OPUS, all of these PAT technologies, but really what's very important is we are extremely focused on our customer needs. There is need for new products that are much more tailored for these newer products that are being launched on the market and where we probably all of us had the luxury back 5, 10 years ago to launch a product that was suiting the vast majority of product on the market. Today, you have to have that GT to be much more customer focused. And innovation, again, we have about 50 products in the last 5 years, so about 10 per year. And last year, they represented the one launched in the last 3 years, represented about 10% of our sales. So it's pretty significant innovation again. Digitization. So I'll spend maybe a minute on this one because we talked a little bit about TAT. I'd like to say we are pretty much where Google was probably 25, 30 years ago or so, which is what the point where the industry is still collecting data right now. And the more data people are going to be collecting the more intelligence they are going to be and the more capable, they are going to be to become even more intention and even more efficient. So what we are doing is we are trying to couple our PET technologies with our systems, so that what was initially an at-line analytical solution is becoming slowly but surely in-line analytical solutions that enable customers to track performance of their manufacturing batches life which is a huge safe of time, but also which is enabling them to definitely stop the batch at the right time and get higher yield for the batch of their manufacturing. And then this is where the next step is going to come, which is going through more advanced analytics. You might have seen we took a minority investment in an Austrian company called Nova sign in July of 2025. And this is digital twin we are going to implement into on-generation small-scale TFF system. That is going to enable customer also to run their processes in a much more efficient manner. What is the future vision of course, AI. I mean we all know about that. We are leaving the AI power right now every day, each of us in our companies. We know that our customers are expecting to be able to develop their processes much faster using AI tool, but also manufacturing in a more efficient manner using AI tool, but they can only do that if they collect the data, they have system with this data integrated, data -- integrated and if they have some of these advanced analytics already implemented. So it goes step by step. We think we are in a very strong position because we are leading the pack on step 1. We are pretty advanced on step 2, and we are going to start to be much more active on 3 as well. So what about I mentioned already the increase we had with our key accounts, about 2.5x more products per key account between 2019 and 2025. In terms of geographical split, Asia is only 17% of our sales. And we know like probably the second closest to us out of the 4 big guys, 20% of its sales in Asia, but most of the others are those '25. So we really have to speed up our growth in Asia. We onboarded 2 new leaders beginning of 2025, 1 leading all of our Asia business, the other 1 leading China in particular, and we are working on a very specific Asia strategy in China for China and for the rest of Asia as well. So mix, nothing really much to comment here. I mean, again, we like to say we are a 10-year young company bioprocessing company. I mean I used to work in another organization where I had kind of the similar split between commercial and clinical I don't see a reason why slowly, but surely, we are not going to move toward more commercial last year, increased by about 5 points in terms of commercial, and that's very much linked to us being able to get designing into commercial drug via some of our raising customer resin offering and fleet management as well. And then in terms of product mix, if you remember last year, Newmont were a little bit higher. So you could say, wow, what happened with new modality. I say, wow, well done, guys, because even with some of the headwinds we had in '25, we've managed to beat our consensus several times and increase our guidance for the full year. And it means like the rest of the business, which is monocular antibody has been doing extraordinarily well for us in but still, we are very eager in pushing on new modality. And as mentioned earlier, we know it's going to come back to being accretive to growth in the near future here. Okay. So what is the story here? 33 million midpoint of guidance last year. We know the market is growing anywhere between 8% and 12%. At least in the past, bad year was 8%, good years was 12%. We are aiming to be 5 points above that. So we think last year at the midpoint of guidance, we were slightly above the 5% above market. We are aiming to do the same for the next 5 years. And this year, obviously, as you all know, we have 200 basis points of headwind from a specific gene therapy drug that had some hit in 2025. But with this 5% above market growth, where I mean to be a double-sized company by 2030. We are very committed to margin expansion. So again, at guidance midpoint, we are landing around 19% EBITDA on sales. That's definitely not good enough. I mean we are absolutely working on it, and we have a very good path forward. Jason and I to be around 30% by 2030. We are still a younger company that is growing very fast. So we are really making sure like we are combining that those huge growth we've been experiencing in the past and that we know we're going to be experiencing in the future as well with getting fit for growth because that's critical for us. But we're going to get, first of all, a lot of volume leverage by just doubling the size of the business. We're going to get some positive impact from price and product mix. And then we're obviously very focused on productivity. And finally, we are going to get OpEx leverage. I mean we've invested quite a lot in 2025. We're still going to invest quite a bit in 2026 to really scale the company to be able to operate that a double-sized company in 5 years. So we'll really start to see leverage towards the second half of this 5-year cycle here. We're working selective investments, so R&D, innovation, again, we're spending about 6% to 7% of our sales every year in R&D, which is quite significant. I mean, I think it's significantly higher than most of our competitors, and that's because it's really part of our DNA the commercial investment, we've done quite a bit, and we're starting also to look at AI tool, not only in commercial, but across the board, but partly on the commercial side, and we're going to build out that APAC presence. Last year, we opened 3 offices in Asia, 1 in Singapore, 1 in Japan, 1 in China, and we are really now in the staffing mode to make sure we are capable to grow much faster over there. And then in terms of dual site manufacturing, I mentioned, the vast majority of our product portfolio. We already have dual siding. There are a couple of areas where we still have to do some modest investment to move that forward. Fit for Growth, we invested in a lot of really key poll. We built a legal team. We really reshaped the finance organization very simply big credit to Jason and the leadership as well. I mentioned AI. I mean we are already using a lot of AI tool. I mean, we are using AI on legal side with a tool called IronClad. That has been a real game changer for us. but also Palantir, we deal with those carriers mid of last year to help us on the global supply chain side. We've moved towards more of a business unit, cross-functional alignment, meaning as we are becoming a little bit bigger now, we think it's important that each of the business units who have got kind of different needs can refocus on what is their top priorities. And we had a huge focus on services and great progress on that side. And '26, we are going to continue to build out that bench. We have a few further investment to make still some of the IT modernization, financial planning, and we're going to embed a life cycle management tool. And we've got, obviously, some strategic transformation initiatives that do include the margin expansion projects. Finally, delivering on strategic priorities. So we've done a lot in '25. Again, we think we've grown more than 5% above market at the midpoint of our guidance with 15% organic non-COVID growth. I know I got the question, why do you still talk about COVID. We unfortunately were the last companies that had some significant COVID sales in 2024, which is why we still had to call about non-COVID in 2025. Expansion of machine guidance implies 150 basis points of EBIT margin expansion, excluding M&A and FX, continue to innovate. I mean, we had 3 really important launch the new version of our protein concentration tool solo, which is becoming a huge success story second half of last year. So first single-use mixers, as mentioned already. And then we launched several new catalog and custom resins. We acquired 908 bioprocessing assets, which has been integrated to the organization around midyear of 2025, and we made that minority investment in Nova sign. And finally, getting to growth we made all of these key hires, and we've invested in quite a lot of infrastructure, '26 similar. We're going to grow -- outpace macros, just taking into account, again, the headwind we have on the gene therapy drug. We talked about how we're going to do that margin expansion will keep on going. We have a lot of product launch in 2026. One of them that I'm really excited about is, I call it the little browser of solo VPlus which is the new generation of our small-scale TFF system. The reason why I call it a little brother, we have a huge installed base like we had on the solo VPA side. And we know like the success that we had to generate that replacement market is probably going to be duplicated here with the TFF story here. So that's something we are very excited about. M&A. It remains our priority one. I mean, we do have quite a lot of dry powder, as you know. So we were definitely looking at several opportunities but also considering to do more minority investment because we really enjoy what we've done last year. And finally, for growth, it will never stop, for sure, at least not for the next couple of years, but we are really making sure we were getting the right team and the right infrastructure to operate that double-sized company in the next 5 years or so. Thank you very much. All right.

Great. Well, that was a really helpful overview. Maybe to start just on 2026. Against the backdrop, you've seen 2 consecutive quarters here of over 20% order growth. The 2026 top line framework you've laid out getting to around 11% to 12% on the top line. It assumes about 500 basis points of market growth offset by 200 basis points of gene therapy headwinds. Can you just walk us through what's embedded in the 2026 framework and the divergence between what you've seen on the order growth side versus what we're kind of starting on for 2026?

Yes. So as you know, KC, we are only reporting our Q4 and full year results at the end of February during our earning call and we'll guide as well for 2026. But I mean you just exactly summarize the framework the way it is. They basically we are aiming to outpace market growth by 5 points. And we're going to have this 200 basis point headwind what I want just people to understand about the orders because you're right, we've said both in quarter 2 and quarter 3, our orders grew more than 20%. This is reported order growth. So this does include both the FX impact as well as the acquisition of 900. So if you would retreat that and then you would compare it to the organic growth we talked about, which is around 15% or so, then the gap would be much lower. So just to help you. And secondly, the comp were for sure, easier for us in terms of orders in quarter 2 and quarter 3. And from this year onwards, comp are going to start to become a little bit more difficult. But yes, we are very happy about how the first 3 quarters of 2025 played out and the full year as well and I'm looking forward to a great 2026.

And you've laid out a framework for operating leverage over the next few years. You talked about it a little bit in the presentation, where the gap between OpEx growth and top line growth is wider in the outer years. But the path to get there isn't necessarily linear, right? So can you just walk us through the puts and takes around the margin framework and how we should think about operating leverage in 2026 and then further out?

Yes. To your point, I'll point us back to the road map page that Olivier shared and we tried to have the key buckets that will get us to that 30% EBITDA in about 5 years. You'll notice that we didn't quantify them, but the buckets are, I'll say, relatively scaled, meaning the biggest contribution is going to be the ability to get OpEx leverage, which is to your point, growing sales at a faster rate than OpEx. But the point on the -- it not being linear is that fuel the Fit for Growth journey that we're on, we do recognize we probably need to make a bit more of that OpEx investment in '26 and probably into '27. And then as we go out later in that time frame, we'll be able to more leverage. But again, for us, that's a core foundation to be able to have a sustainable, I'll say, set a team, an infrastructure, the systems, the processes have to be able to have a business that's double in size. The other buckets, again, we outlined as price, of course. We've been able to achieve that and see that as a continuation. The productivity, so we'll be executing productivity in our manufacturing sites, both, I'll call them the day-to-day manufacturing as well as maybe bigger projects that can take a bigger swing in cost structure. And the last thing I'll comment on is mix. Just the dynamic there is that for the last 2 years, we've had negative, I'll say, a mix or a mix headwind you've talked a little bit about some of the procured chrome resins that we have in our chromatography, a little bit of '24, a little slower growth on proteins, some dynamics. As we look into '26 and beyond, it's not that mix becomes a huge, I'll say, profitability growth driver, but it's not the drag anymore. And so we get that I'll say, still a tailwind overall. So I think those are the buckets that we'll be driving, and we'll be able to update the team as we go through each year.

How could reshoring the reshoring opportunity really impact the timing and degree of reinvestment in '27 and beyond?

Yes. I don't think reshoring will impact that specifically. I mean, again, Jason just said, I mean, we are going to keep on investing in our infrastructure, in our people and so on. So this is going to happen, whatever happened on the onshoring side. or not. I mean, we built a lot of capacity, as you know, doing COVID. So that capacity in principle, enable us to deliver as much as $1.2 billion of sales. So it's not like this onshoring will immediately require to build more space, more capacity, manufacturing capacity. Obviously, we need to bring more labor. But beyond that, nothing in particular. And then we're going to continue that FID 4 growth journey over the next several years. But as Jason mentioned, we're going to start to really be able to leverage it because I'll give you one example. I mean we built our legal team last year. I mean, we were outsourcing most of our legal services up to the end of last year, and we decided to build our own legal team. So probably for a year almost have a little bit of double spending because you still use the external company and you are building your own team. From this year onward, we are going to start to switch to using our entire team completely. And then we are using also that AI tool, meaning year after year, somehow we're probably going to need less and less spending on the legal side. So that's a perfect example where you have a peak temporarily and then you're going to slowly but surely going to start to stabilize and probably start to go down after.

Okay. Maybe sticking on the reshoring theme very much in focus for investors here this week. What are Repligen's advantages and disadvantages around competing with larger bioprocessing players to win some of those resin related RFPs? What's Repligen's right to win? And then can you give us an updated view on what you think the potential incremental revenue opportunity looks like for...

Yes. So more than really what is our competitive advantage. What I think is important for people to understand is we have a seat at the table today, which we just didn't have up to probably a year or maybe 1.5 years ago. And in fact, even before those onshoring RFPs are coming to the industry's hands and so on, we received for the first time a lot of different RFPs for what is big hardware ask towards the end of last year because if you think, if you look back, since we had ATF controllers, first, we've added our downstream system, both TFF and ChromeSystem. And then last year, we added mixes as well. So when you -- of breadth of offering, we almost have everything today apart from bioreactors. And what happened as well in the same time is most of these big pharma companies have tried us they've tried to buy 1 system, 1 crop system. Obviously, they know TFF for and then they like it because they like the PAT enablement we're also bringing with our system. So we are getting those asked already. So for us, we are going to enter into that onshoring exercise where we have a chance because we have a seat at the table. And one of the advantage we have is, obviously, we've got manufacturing capabilities in the U.S. We are probably the only company right now that has got that capability for downstream system. And even though tariff and that what is an acceptable situation, there is still 15% tariff on import from Europe. So I mean when we are going to be competing with the other guys on that side, we will at least have that 15% better pricing because of tariff -- so that's definitely something we're looking forward to. But overall, very exciting. In terms of sizing, it's difficult to say, KC, I mean we're hearing obviously crazy numbers. I've learned over the years to discount those numbers. So when I love to make a quick calculation, imagine it's only 10% of what has been announced that's going to happen. And imagine that 10%, maybe 10% to 20% of that 10% is typically going to land into buying hardware equipment and so on. That's a huge amount of money. I mean you're talking about billions of U.S. dollars it's not so many companies that are going to be competing to -- so it's going to be a very nice opening for the entire bioprocessing industry for sure.

Maybe touching on new modalities. So your Repligen faced headwinds from a specific gene therapy platform in 2025, and that will continue into 2026. Yet, outside of that specific customer, new modalities overall has been pretty strong for you guys, right? So how do you assess the health of the new modality funnel for 2026? And are there certain areas you're more excited about than others?

Yes. No. So being very specific, you people can make the calculation with the slide we have. Last year, new modality grew high single digit, excluding Sarta. So it's not bad, but it was still dilutive to our overall growth, which at the midpoint of guidance, again, is 15%. So where it was still positive, it was somewhat not as fast as the growth we see on monoclonal last year. So why is that? Well, first of all, are we still bullish about Neal? Absolutely. I mean I'm absolutely convinced, again, this is going to become accretive to growth gain. Is it this year, probably not because obviously, we've got that huge headwind on that gene therapy drug. But I want to say probably from '27 to '28 onwards, it's going to start to be accretive again. And then you need to be deep dive into the different new modalities because they all have very different pattern lately. And I took the advantage of the break over Christmas to read quite a lot of article. And in fact, the industry is very bullish still on new modalities. But they are more bullish on some new models than some others. And if you think about it, cell therapy seems to be really the one that everybody is very positive about in terms of -- not that far behind and ADC almost the same level. The only one that seems to be a little bit more of a concern at this stage for people with mRNA. We've seen some studies saying people are a little more careful on that side. But most of our big pharma accounts still have a lot of new modality products in their funnel and we know we are the right partner for them. So we are continuing to launch new products. We just launched 3 resin the end of last year, and we're absolutely very optimistic about it.

Yes. Maybe turning to your product portfolio here. Chromatography has shown strong momentum in 2025. I think heading into 2025, a strategic priority was focusing more on big pharma customers, including -- customers to the Opus prepacked columns. And you've called out at least 2 wins in 2025, driving strength in that franchise. With ongoing commercial efforts focusing on pharma for prepacked columns, can you discuss the drivers behind the shift in customer preference towards those prepacked columns or product solutions, I should say. And really what's driving momentum here into 2026?

Yes. So you're right. We won really 2 big pharma accounts, and that was really a lot of work from our sales organization. Again, the key account management team doing a great job on these because it's not early to convince to convert a big pharma and convince them to switch from packing their own columns to doing it with somebody outside. What's playing definitely in our favorite cases back and I start to be old enough that I remember 30 years ago, when people were entering into a company and starting packing column, they would very often do that their entire carrier. It's fair to say the new generation lots to do different things, and it's very difficult now to get somebody willing to pack column for more than 2 to 3 years. And it's a real hard to pack a column. So what has happened really more and more is that those pharma company realized they lost a lot of expertise. And on the other side, they have a provider like us with packing more than 3,000 column every year and is obviously very good at doing that. So slowly, but surely, I think some of these companies realize there is a good reason to go more and outsource more of that. And I think that should be a real tailwind for us in the next few years.

And within Process Analytics, you've recently described the SoloVPE plus upgrade cycle as being in the early innings with only a low single-digit percentage of SoloVPE installed base having been upgraded. What's driving customers to upgrade? Can you lay out the time line for that sales cycle? And do you expect this replacement cycle to be a material revenue tailwind in 2026? Or is this more of a driver in 2017 and beyond?

In our business when you sell hardware, it's absolutely critical to launch a new version of your hardware every, I would say, minimum 5 years, sometimes people do even less than that. because you want beyond the growth of the market, you want to make sure you're generating a few extra point of growth because of a replacement market opportunity. We didn't do a lot of that in the past. And then on the solo solar was a really good example where we had the same product on the market for quite a while. So when we launched it, we said, hey -- well, first of all, we had to bring something different and we did bring a lot of upgrades to the new version, speed 30 seconds instead of 2 minutes accuracy of the protein concentration measurement. But also people, particularly people who don't know how to spend their budget. So very let's upgrade our equipment and so on. So this is just starting. I mean we have a very significant installed base, which is north of 2,500 just at the beginning, we probably hit the 100 range of replacements. So that should definitely be a nice tailwind for the next several quarters, if not 2 to 3 years for sure.

Got it. That's helpful. Let's talk -- so it seems like 2026 is gearing up to be a big year for ATF, just given you delivered equipment for a blockbuster in 3Q and expect consumables pull-through to really start in the second half of Repligen has continued to win late-stage commercial customers with ATF expected into more than the 50 late-stage and commercial drugs at this point. Beyond the 2 blockbuster drugs, what's Repligen's pipeline visibility for additional consumables opportunities in 2026 and beyond? And how should we think about the number of programs that are currently in late-stage development that could contribute to revenue?

So it's a long question. So I'll try to summarize it. So if you look at what we said during our quarter 3 earnings and so on, the franchise out of the 4, that's not going to be growing at the mid-teen pace is filtration, we said 10%. And then somehow, as you all know, ATF is a significant part of it. It's not the majority, but it's a significant part of it. So just to rephrase a little bit what you said. We had an incredible year for ATF in 2024. So obviously, we grew more than 50% ATF in 2024. So we enter a year with very high comp on the ATF side. So the performance was still positive. We still had growth in 2025, but comp was so high like you probably need to look at the KOL in the last 2 years, which was very, very high and much higher than the overall growth of the company. But as far as -- and what I want to say, I talked about the breadth of the portfolio we have. I mean, last year was a showcase for us because remember, a lot of people ask us, oh, there is a competitor on ATF, what's going on and so on. we've over delivered every single quarter because there was no competitor. But beyond that and even though filtration was probably the slowest growing franchise we had last year, the 3 other franchise grew extremely fast. So we have a very diversified product portfolio. And last year was a showcase of that. In terms of the future of ATF, we are absolutely delighted, very optimistic. I mean we've had a lot of great wins in 2025. Yes, I know I talked about that blockbuster. I mean, maybe I should not, but that was my first earnings call as the new CEO. I think what's more important is why in 50 drugs that are late stage or that are really commercial ready, and we see this volume increasing for the next 4 years. beyond that with customers who have been using it for only 1 product who are starting to use it for a second, the entire portfolio of Mabe, but also people are using at the minus 1 level. We are starting to do it at the end level as well. on the scale from 1 to 10, I'm saying we're at anywhere between 2 and 3 right now in terms of the runway we have for ATF. So we at the beginning of the story still.

What opportunities are there to expand the strategic initiative to add additional accounts? Are there any specific franchises that are serving as like a tip of the spear type of initiative for broader account entry. And on some more note, is there anything missing from Repligen's portfolio that customers would ask for that you think you could fill inorganically?

Yes. So I don't think it's so much about adding more key accounts. I mean we were covering 20. I think it's a sweet spot about 16, 17 pharma 3 to 4 CDMOs. The reason why I'm hesitating is we are changing some time. I mean, every year with Greg, who is leading our key account management team who are sitting together and figuring out does this customer deserve a key account or do we bring somebody else into the program because we might see somebody else starting to generate a lot of opportunities. So for me, it's more about making sure we really tackle the 20 we are focused on. And I mentioned the fact we're also selling them 2.5x more products than we were 5 years ago in average. We just need to make sure we are capitalizing on that. We are delighting them with the best service they can get in the industry, very high level of quality. And again, with the right level of innovation, we need to bring them so that they feel we are the partner of choice for them. If we continue to do that and we've executed on that extremely well over the last 3 years, I think we're going to be up to further successes. One thing I didn't mention is growth we had with key accounts over the last 2 years have been very accretive to the overall growth we had in the company. So we are delighted, and we are going to keep on pushing that side for sure.

Maybe last minute, just can you just provide an update on the 908 integration and the funnel for 2026.

Yes. No. I mean, everything went pretty much on plan. I mean the first priority for us we had to move manufacturing from 908 in the Boston site to our own site in Marlboro, Massachusetts, which has happened very smoothly. And then secondly, we have merged 2 sales organization, which has happened to work extremely well, and we are really delighted to see the progression we've had on the funnel side and we are very optimistic, again, we said it's a mid- to long-term play. I mean, it's nothing like are to see fantastic stuff in the next 1 or 2 years. But really, we are now having the best PAT technologies that we're going to be able to couple either with our ATF system or anything else in the future, which will be a big differentiator.

Okay. Maybe last 1 quickly, what are you most excited for 2026?

Everything. So many opportunities I'm very excited for sure about the journey.

We'll leave it at that. Thank you, Repligen, for joining us today. Thank you, everybody, for joining us. Have a great rest of the conference.