Repligen Corporation (RGEN) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us, and welcome to the Repligen Q2 2026 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host for today's call, Jacob Johnson, Vice President of Investor Relations for Repligen.

Thank you, operator, and welcome, everyone, to our 2026 Second Quarter Report. On this call, we will cover business highlights and financial performance for the 3-month period ended June 30, 2026, and will provide financial guidance for the full year 2026. 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 risks and uncertainties that may cause actual events or results to differ. Additional information concerning risks related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K 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 oblige 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 morning, which is posted to Repligen's website and on sec.gov, along with our earnings supplemental, which is posted to Repligen's website. Adjusted non-GAAP figures in today's report include the following: 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, other income or expense, tax rate on pretax income, net income, diluted earnings per share, EBITDA, adjusted EBITDA and adjusted EBITDA margin. 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. With that, I'll turn the call over to Olivier.

Thank you, Jacob. Good morning, everyone, and welcome to our 2026 Second Quarter Call. Once again, we delivered excellent results in the second quarter. Our team executed at a high level driving 12% reported growth, which translated to 13% organic growth and 460 basis points of adjusted operating margin expansion. Reflecting on our strong first half results, and with our increased conviction in the full year outlook while raising our organic revenue growth and adjusted EPS guidance. At the midpoint, this represents a full 1% increase to our organic growth expectations and $0.05 to adjusted EPS. In addition to our excellent first half results, we see several reasons for our increased confidence in our end markets and revenue outlook. First, the positive order momentum that emerged late in the first quarter carried into the second quarter including an improvement in ATF order trends. Second, segment revenue remains muted. We saw a sequential step-up in orders and won another important RFP. Year-over-year, our funnel remains very healthy, and we are increasingly convinced that capital equipment tap will open further in the not-too-distant future. And finally, emerging biotech grew high teens even against a high comparison, a clear sign this customer base is recovering in a sustainable manner, and we are seeing the translation of an improving funding environment. In the second quarter, we delivered $204 million of revenue, driven by healthy recurring revenue growth across our broad portfolio. Proteins led away with an impressive 50% growth while analytics demand remained extremely strong with 30% plus growth in the quarter. Consumables, including proteins, grew high teens, while services grew over 20%. Capital equipment revenue was stable between Q1 and Q2, and we saw a significant sequential pickup in orders, though revenues declined slightly year-over-year. Still, our capital equipment revenue grew high single digits in the first half. Across geographies, APAC led the way with approximately 40% revenue growth, while North America was also strong in the high teens. The growth in APAC highlights the fact our invigorated strategy continues to create opportunities across the region, and we are pleased to see strong growth from both biopharma and CDMOs in the region. Our strong first half margin expansion continues to reflect our disciplined operational execution. We continue to be balanced in investing for future growth while managing costs and drive real operational efficiencies in our manufacturing operations. As a result, we remain on track to achieving our target for 30% adjusted EBITDA margin by 2030. In short, our base business remains very strong, as highlighted by 13% organic growth in the second quarter. Our second quarter growth was in part driven by the multiple new product innovation we launched in analytics and proteins in recent years. This is enabling us to outpace market growth. The definitive agreement to acquire BioLife as an exciting new growth vectors, this financially accretive acquisition fast track strategy. I will provide additional thoughts around our strategic effort shortly, but first, some more details on the quarter. Looking at our performance by end market, CDMO growth remains strong. Biopharma revenue was essentially flat, with strength in North America and Asia, which both grew at least high teens, offset by a difficult prior year comparison in Europe. OEM and integrators were accretive to growth, driven by strength in feed management and proteins. As mentioned earlier, emerging biotech revenues grew high teens, which is important as we are now lapping our return to growth last year. We remain encouraged by growth from this customer base and are optimistic we will see a continued recovery given funding trends remain robust. New modalities grew 9%, excluding the impact of a certain gene therapy headwind. Importantly, this was the best quarter since the first quarter of 2025 and we saw a strong sequential increase across all modalities. We continue to see growth in cell therapy and also in gene therapy when excluding that specific headwind. Moving to our strategy update. We recently completed our annual strategic planning process. Looking back on our 2025 strat plan, we made great progress on our strategic initiatives including, but not limited to launching multiple innovating products, adding great talent to our team and expanding our margin. Our recently large transformation office is positioned to start delivering promising business improvements. This year's plan focused on refining our same long-term goals, including outpacing market growth advancing our digital and services capabilities and accelerating growth in Asia Pacific. We would highlight three areas of heightened focus in this year's track plan. First, we recently launched our integrated solution strategy. We believe now is the right time to launch this initiative given the upcoming onshoring opportunities. This team will focus on cross-selling our entire [ A2D ] offering under a formal integrated solutions team. While our key accounts team has focused on selling our full suite of solutions, our integrated solution initiative will further this proactive efforts to increase speed and professionalism while also engaging more directly with engineering firms. We will initially focus our efforts on ADCs and other new modalities. In particular, with the upcoming acquisition of BioLife, we'll expand the scope of solutions we can offer to the cell therapy market. Second, our team is increasing its focus on product life cycle management. This effort works to continuously innovate our product portfolio to best address customer needs while ensuring the transition to upgraded solution is a frictionless process. We've seen sizable benefit from this initiative with our SoloVPE upgrade cycle and we intend to run a similar playbook elsewhere in our portfolio. Third, the definitive agreement to acquire BioLife based on our strong momentum and commitment to use compelling M&A to drive a credit growth, double down in high-growth markets and create more robust customer solutions. BioLife fast tracks our cell therapy leadership by adding a differentiated portfolio of products serving this rapidly growing end market. Following last week's announcement, we received some questions in the [indiscernible] cell therapy market. From our analysis of the biotic landscape, it's clear that cell therapy represents a meaningful portion of our customers' focus and investment with this modality representing nearly 1/4 of their clinical pipelines. In our extensive due diligence, we spent time with third-party advisers evaluating the opportunities and risk of this end market. The analysis increased our conviction in the long-term growth of this industry while helping us to gain comfort around potential risks like further development of in vivo therapies. A recent white paper from the Alliance for Regenerative Medicine showcased a 170% increase in U.S. treatment centers and a 740% increase in cell and gene therapy U.S. claim from 2018 to 2025. This highlights the growing volume from these modalities. The accretion of BioLife will enhance our offering for these end markets and provide us with additional opportunities for organic and inorganic growth. It added deeply embedded and highly trusted platform to our portfolio, led by biopreservation media, which supports 18 commercial therapies. We believe the future combination of our companies will bring important benefits to customers by expanding our robust offering of cell therapy workflow solutions. Finally, the transaction is financially compelling. It's accretive to our top line growth, our adjusted margin and adjusted EPS. We see at least USD 20 million synergies and $0.05 of adjusted EPS accretion in year 1 with growth to at least $30 million and $0.25, respectively, in year 2. Before I turn the call over to Jason, I'll provide some more detail on our franchise level performance. I will note that all references to our 2026 expectations are on a reported basis. Starting with Filtration. Revenue grew slightly on a reported basis in the quarter, driven by consumable demand, including fleet management and [ static sets ] offset by the sale of Polymem and the previously disclosed gel therapy headwind. Consistent with our expectations, ATF and systems demand were muted this quarter. As I previously mentioned, we are encouraged by the recent pickup in orders that will start fueling 2027 backlog for both of these product categories. We continue to expect filtration growth of roughly mid-single digits. Turning to Chromatography. Revenue grew low double digits, lapping our strongest quarter last year. This was again driven by growth in OPUS Columns with continued growth from CDMO and biopharma customers. In particular, we continue to see significant traction with large-scale columns where units have grown 18% in the first half. We continue to expect chromatographic growth of 20% plus for the full year. We had a phenomenal quarter in proteins with 50% growth, again, driven by strength across our portfolio. We are excited about the portfolio of capabilities we've assembled in our protein franchise. It's encouraging to see how strategy play out in financial results, and we remain focused on seeding opportunities across our protein offerings. With a strong first half performance and visibility into continued momentum in the second half, we now expect protein growth in the mid-teens for the year. Our Analytics franchise had another strong quarter with 30% plus growth, including strength across consumables, services and capital equipment. The SoloVPE upgrade cycle highlights the tangible benefit of our product life cycle management strategy, but it's important to note, we are seeing broad strength in our downstream Analytics business. We continue to believe our digitizes and strategy is well positioned for where the industry is going. Given momentum in downstream demand and a growing contribution throughout the year from our upstream analytics offering, we now expect Analytics growth of at least 25%. Before I hand over the call over to Jason, I wanted to reiterate that we are very pleased with our second quarter results and our continued momentum in the business. We delivered 13% organic growth in the second quarter. Our team continued to execute effectively on our strategic priorities, outpacing market growth while expanding margin, which enabled us to increase our full year outlook. These are incredibly exciting times at Repligen, and we look forward to welcoming the BioLife team upon the close. Now I'll turn the call over to Jason for the financial highlights.

Thank you, Olivier, and good morning, everyone. Today, we are happy to share our excellent financial results for the second quarter of 2026. These results in an improving environment have increased our conviction in our 2026 outlook. And with that, we are raising our full year guide. I look forward to sharing the details shortly. Before we discuss the quarter, let me highlight that unless otherwise noted, all financial measures discussed reflect adjusted non-GAAP measures. As shared in our press release this morning, we delivered strong second quarter revenue of $204 million. This is a reported year-over-year growth of 12% or 13% growth on an organic basis, which excludes the impact of acquisitions, divestitures and foreign exchange. The previously announced sale of Polymem was a one point headwind to reported growth, while foreign currency was also a slight headwind. For clarity, we did receive tariff refunds in the quarter that were a slight headwind to both reported and organic growth. As Olivier provided details on our product franchise performance, I'll share more color on our regional performance. Starting with quarterly revenue mix. North America represented approximately 51% of our total. EMEA represented 32% and Asia Pacific and the rest of the world represented approximately 17%. North America grew high teens driven by strength across our franchises and customer base. EMEA declined mid-single digits with strength in analytics, offset by a difficult prior year comparison. Asia Pacific grew a standout 40% and driven by strong growth in pharma and CDMOs supported by continued strength in China. Transitioning to profit and margins. Our strong first half margin expansion continues to reflect our disciplined operational execution. Second quarter adjusted gross profit was $110 million, and adjusted gross margin was 53.9%. This was 280 basis points of margin expansion versus last year. The year-over-year increase was driven primarily by volume leverage, pricing execution and favorable product mix, all of which more than offset inflation. Tariffs were a modest benefit to our margins in the second quarter. Our full year guidance now assumes minimal impact from tariffs. Continuing through the P&L, our adjusted income from operations was $34 million in the second quarter up 55% year-over-year on a reported basis. This translated to an adjusted operating margin of 16.7% in the second quarter, which was an increase of 460 basis points year-over-year on a reported basis, including a 40 basis point benefit from the sale of Polymem. Adjusted EBITDA was $43.8 million in the quarter or 21.4% adjusted EBITDA margin. Underlying our adjusted operating income margin expansion in the quarter with strong operating leverage achieved with a modest adjusted OpEx growth of 6% on a reported basis and 8% excluding the impact from the Polymem sale and foreign currency. We have remained prudent in our spending and have taken a measured approach to head count additions in the first half. To help explain the sequential decline in OpEx and lower year-over-year growth. The quarter was also helped by a transient benefit related to employment compensation costs that were favorable relative to our expectations. We do not expect this benefit to recur in the second half, and therefore, we anticipate OpEx to step up sequentially in the third quarter, driven by spending levels more consistent with the first quarter. In addition, given recent trends, we do plan to make some investments in the second half of the year to support growth in 2027. We will remain thoughtful about balancing investments in the business and expanding margin. Moving to the bottom line. Adjusted net income was $31 million, a 45% year-over-year increase. Our second quarter adjusted effective tax rate was 21.5%, and we now expect it to trend towards the lower end of our prior guidance of 22% to 23%. Adjusted fully diluted earnings per share for the second quarter was $0.54 compared to $0.37 in the same period in 2025 or an increase of 46%. We continue to see strong earnings conversion from our robust revenue growth. Finally, our cash, cash equivalents and marketable securities position at the end of the second quarter was $810 million, up $25 million sequentially from the first quarter. This is driven by $33 million of strong cash flow from operations, primarily offset by $5 million of CapEx in the quarter. We remain focused on optimizing our working capital to drive improved free cash flow. I will now outline the improved outlook in our adjusted financial guidance. For clarity, our guidance does not include any assumed impact from BioLife as the transaction is expected to close in the fourth quarter following necessary and customary approvals. As Olivier mentioned, we are raising the midpoint of our revenue guidance. We are now guiding $813 million to $834 million of revenue or $824 million at the midpoint. This represents 10% to 13% reported growth or 10.5% to 13.5% organic which is an increase of a full percentage point of organic growth at the midpoint versus our prior guidance. This assumes a couple of million dollars of foreign currency tailwind, offset by approximately one point of headwind from the sale of our Polymem operations we announced last quarter. From a franchise perspective, our reported growth of 10% to 13% assumes, roughly mid-single-digit growth in Filtration, greater than 20% growth in Chromatography, Proteins growth of mid-teens and 25% plus growth in Analytics. We continue to expect 110 to 160 basis points of gross margin expansion for the year. That said, with our strong first half results, we are raising our adjusted operating income guidance to a range of $128 million to $134 million and our adjusted operating margin guidance of 15.7% to 16%. This implies 190 to 220 basis points of operating margin expansion. Moving to the income statement. We continue to assume $19 million of adjusted other income while we now assume a tax rate of approximately 22%, as mentioned earlier. Putting this together, we expect adjusted fully diluted earnings per share to be between $2.03 and $2.09, this is up $0.32 to $0.38 versus 2025 or up 20% at the midpoint. The midpoint reflects a $0.05 increase from our prior guidance. For visibility to the remaining quarterly cadence, we expect Q3 revenue dollars to increase slightly sequentially. As we highlighted last quarter, we continue to expect Q3 to be the lowest adjusted gross margin quarter for the year. We expect adjusted gross margins to decline sequentially and year-over-year as mix can have an impact in a given quarter. Subsequently, fourth quarter margin will benefit from volume leverage. As I mentioned, we expect underlying third quarter OpEx to return to levels more consistent with Q1, but it will be higher in total as we expect to make modest investments in the back half of the year to support future growth. The investments will be focused in sales and R&D and continuing to support our Fit for Growth journey, particularly in IT. As a result, we see third quarter operating margin fairly consistent with third quarter of the prior year. As a quick update, we have seen continued progress in our dedicated transformation office. We continue to develop and implement plans to drive incremental margin expansion, and we'll soon be leveraging the detailed integration playbook developed by the transformation team for BioLife following the transaction closing. As it relates to cash, we expect CapEx spend to continue being approximately 3% to 4% of 2026 revenue. As we wrap up the call, Olivier and I want to thank our Repligen teammates for delivering an exceptional first half of 2026. Last week's announcement of our definitive agreement to acquire BioLife marks an important step forward in our journey. It fast track our cell therapy strategy and opens a compelling new growth vector for Repligen. We are energized by the momentum across our business and remain firmly focused on executing our strategic priorities. With that, I will turn the call back to the operator to open the line for questions.

[Operator Instructions] Your first question comes from the line of Matt Larew with William Blair.

A strong quarter that you previewed last week, so the growth wasn't a surprise. But composition of that growth is perhaps a bit different than we expected, both in terms of the segment, strength in Proteins, in particular, and customer class, the strength emerge biotech. So would just be curious, how order trends progress throughout Q2 and into the first month of the third quarter across segments and customers? And what that means in terms of your visibility to the guidance range at this point based on those order trends and backlog that you're building?

Yes. Matt Olivier here. Yes. No, absolutely good question. We are obviously very happy about how order developed over the last several months. You probably remember, we said we saw a really nice order improvement toward the end of quarter 1 and this has kept on going for all of quarter 2, which was really great. And we from pretty much across the board in terms of orders in terms of our different franchises. That's why we came to the conclusion it's really the right time to increase our guidance for the full year, knowing like we are on our end of July, and we've got much better visibility for the full year. So that's why we decided to move to 10.5% to 13.5% midpoint at which happens to be exactly what we had during the first half, I mean organic growth of 12%, meaning in order to deliver the midpoint of the new guidance, we don't need any acceleration at all. And then just quickly going through the franchise. Obviously, you mentioned incredible performance on Protein, but also on process Analytics and Chromatography. I want to say -- so the only one that has not been doing fantastic this year is Filtration and that was just expected because all of the headwinds we talked about are all happening in Filtration.

Your next question comes from the line of Dan Arias with Stifel.

Olivier or Jason, on capital equipment, up high singles for the first half of the year. 1Q was the better growth quarter, but I think you mentioned that order activity improved sequentially. So how do you think second half equipment growth sets up as a compare to the first half? And then with that within that, can you maybe just sort of take a shot at a view on how you think you exit the year on equipment as we start to think about some of the moving parts here for 2027.

So honestly, it was really expected that capital equipment sales would be muted for us in Q2. I want to say like for the first half, our sales of capital equipment up high single digit. But what was really more important for us was to see order really picking up very significantly sequentially our book-to-bill in quarter 2 was really significantly above 1. So what's important is we won a second RFP. Remember, we said we will start to have a seat at the table end of last year, that is the second one. Number 3 is on its way, we should get confirmation within the next few weeks probably. So we are starting to build a really nice backlog for '27 and we were really excited about that. I mean, some of it might come towards the end of this year, but probably mostly towards the beginning of next year, which is going to set us up for a really strong 2027 on the equipment side.

Your next question comes from the line of Casey Woodring with JPMorgan.

I guess first one, on the 50% protein growth, can you just elaborate on what you saw in the quarter there? Was there a big order or something else that drove the outside strain? And then second question here. On the margin front, you talked a little bit about 3Q margin expectations, but maybe if you could just walk us through the cadence and what's implied as the exit rate for 4Q on the operating line. Curious how much gross margin steps up from the 3Q levels that you talked a little bit about. And then on OpEx, stepping up in the back half, you had the favorable employment compensation costs in the first half and you talked a little bit about growth investments. So maybe just any way to quantify, how should we think about that stepping up in 3Q and then again in 4Q? .

Yes, I'll start by answering the question on protein, and then I'll let Jason comment on the margin side. So Yes, you said it rightly. I mean it was an incredible quarter for us on the Protein side with growth around 50%. It's really what was driven by strength across the entire portfolio. And remember, couple of years ago also, we said we had to pivot our Protein strategy completely after losing two of our big OEM deals at that point. And the strategy we've put in place is just playing out in a marvelous manner. And being a little bit more detail. I mean, we've resin strength from three different sides, on the Protein side. First of all, our EM partnering with [ Purolite ] is doing extremely well. They had a very strong performance in Q2, and we are so happy to partner with them. But also on our own ligand/resin custom development, the [ Abeta ] portfolio, we had a tremendous quarter as well. And then finally, on growth factors as well, what was a very strong quarter. So it's really pretty much across the entire Protein portfolio that we've experienced a very nice growth, which is why we decided to increase the guide to mid-teens for the full year versus low double digits before. And on margin, I'll let Jason answer.

Yes, Casey. First, let me just highlight and thank the team for such a strong execution that we've been lowering on margin expansion. And so we've had a really strong first half is at the gross margin level and at the operating margin level. When I take a step back, I think we've improved our visibility, and we can make faster, smarter decisions. Manufacturing team is delivering. We're achieving net price, getting volume leverage. And we've been very balanced in our overall OpEx management in terms of making sure that we're investing in the future for growth and our Fit-for-Growth journey as well as again driving that margin expansion. You saw that we raised our operating margin guide by another 25 bps. That was after 25 bps in the first quarter. So now we're guiding for a full just north of 200 basis points of margin expansion year-over-year. So really excited to see that momentum going. Again, there is a dynamic first half to second half that you called out. The op margin will be slightly lower in the second half. And some of that's driven by the OpEx that you referenced. But frankly, again, we didn't change the OpEx guide, raised the top line, and so we see that operating leverage falling through. The second half OpEx that we've called out is going to be a step-up, right, from a run rate. So the third quarter will step up a couple of million from 2Q and then fourth quarter will step up similarly again. And as I highlighted on the call, we'll be really doubling down a little bit of our investments in sales. We've talked about certainly our investments in Asia, some of the technical selling resources we have, the integrated solutions team that we're building and then also in R&D. So again, but I would put in context that even with that growth in the quarters, OpEx will still be up really only high single digits year-over-year. and again, being less than our top line growth, that's how we achieve that leverage. Gross margin, just to address that quickly, no change in the guide, still up 135 bps year-over-year. So again, continuing to see that traction. There is a, I'll say, more of a change first half versus second half at the gross margin line than we see at operating margin. And that's primarily driven by mix, right? We probably had about a full point of expansion in the first half on the mix we saw we're still calling to about a neutral mix impact for the year. So that, of course, implies that the second half is going to be the other direction. But again, we've been really happy with what the team has been executing and we'll continue our journey on margin expansion.

Your next question comes from the line of Dan Leonard from RBC.

I'd like to talk a bit more about the topic of order conversion, specifically in light of that comment, Olivier, that you made that Q2 order strength in Filtration fuels your 20 growth outlook. Did that comment apply to both consumables and equipment? And what are the factors limiting faster conversion?

Yes, it's very much depending from customer preparedness. And that's, as you can imagine, particularly the case for capital equipment, where when you get orders for specific capital equipment investments, you have to make sure that the plant is ready to accommodate delivery of those equipment. So it's mostly the case for capital equipment. It can be the case sometime for consumable as well. It's a little bit more rare, but that's definitely also sometimes a case where some people like to order their consumable 6 to 12 months in advance, but it's mostly applicable for capital equipment, for sure.

Your next question comes from the line of Brendan Smith with TD Cowen.

Maybe just another follow-up actually on the filtration commentary a bit. I know you mentioned in your prepared remarks, you were some of the headwinds you had previously acknowledged and were expected. So I guess I'm just wondering, as we look at filtration in the second half, should we maybe expect some of these dynamics to be similarly spread between Q3 and Q4? Or is it mostly kind of a Q2 and Q3, but maybe behind you by maybe kind of any updates on the [ Madrick ] tuck-in with ATF that could impact some of that this year. Really just trying to understand some of the cadence of that over the next couple of quarters. So any color there would be great.

Yes, of course, as you heard, we had only a slight revenue growth for Filtration in Q2, which, by the way, was driven by pretty strong feed management and [indiscernible] business. what was really encouraging for us was a pickup we've seen in ATF and equipment orders toward the end of the quarter. And then you just said it very rightly, I mean, all of our 2026 headwind happened to be Filtration, unfortunately. I mean it started obviously with the gene therapy program that we faced issue with a year ago now exactly, then we mentioned at the beginning of the year, we had the two headwinds on the ATF customer side, on managing its inventory, the other ones being delayed implementing the new sites. And now on top of it, we sold the Polymem business, which also impacts the reported growth. So we probably will see some impact from those headwinds in quarter 3, and we expect like it should start to normalize somewhat in quarter 4. And what I'm trying really to say here is we remain very excited about 2027, the growth opportunity that exists across that entire portfolio. Just to be very specific on ATF 2026, we've won more new programs than we did in the first half of 2026. And in fact, by mid of May already, we had reached a level we reached by the end of June of 2025. So it's really a much higher number which we know is going to set us up for being back to growth very nicely on the ATF side from '27 onwards and for the next several years. So that's where we are. We kept the guidance roughly mid-single digit again, if you look at all of these headwinds we have, they are piling to almost high single digit. So that's a big gamechanger obviously, for us this year, and most of these are temporary, as I already mentioned.

Your next question comes from the line of Puneet Souda with Leerink Partners.

First one really on APAC, 40% growth, really strong there. Could you unpack that a bit more? I know China was a big focus for you. How are products? What products are gaining traction there in a fairly competitive market. Maybe just elaborate a bit on that. . And then on the onshoring pre piece, Olivier, how are you thinking about the timing and magnitude of that? I just wanted to get a sense of if you're willing to share anything on 2027 organic growth ex BioLife.