Repligen Corp. Earnings Cheat Sheet: Increased Costs Strains Margins
Repligen Corporation (NASDAQ:RGEN) reported a drop to a loss in the first quarter driven by higher costs. A biopharmaceutical company, focused primarily on the development of novel therapeutics for radiology and neuropsychiatry.
Repligen Earnings Cheat Sheet for the First Quarter
Results: Swung to a loss of $55,597 (0 cents per diluted share) in the quarter. Repligen Corporation had a net income of $988,053 or 3 cents per share in the year earlier quarter.
Revenue: Rose 9.2% to $7.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations RGEN fell in line with the mean analyst estimate of breaking even.
Quoting Management: “This quarter has been marked by the accomplishment of numerous clinical and regulatory milestones,” stated Walter C. Herlihy, President and Chief Executive Officer of Repligen Corporation. “We initiated a Phase one clinical trial of RG3039 for spinal muscular atrophy and a pilot study of RG1068 in combination with MRI and CT for detection of pancreatic cancer. In addition, we concluded our pre-NDA meeting with FDA for RG1068 for pancreatic imaging and we received Fast Track designation and EU orphan recommendation for RG3039 for spinal muscular atrophy.”
Gross margin shrank 2.4 percentage points to 74.3%. The contraction appeared to be driven by increased costs, which rose 20.2% from the year earlier quarter while revenue rose 9.2%.
Revenue has risen the past four quarters. Revenue increased 21.2% to $5.9 million in the fourth quarter of the last fiscal year. The figure rose 25.8% in the third quarter of the last fiscal year from the year earlier and climbed 34.8% in the second quarter of the last fiscal year from the year-ago quarter.
The company fell in line with estimates last quarter after missing forecasts in the previous quarter with a loss of 6 cents versus a mean estimate of a loss of 3 cents per share.
Competitors to Watch: Life Technologies Corp. (NASDAQ:LIFE), Bristol Myers Squibb Co. (NYSE:BMY), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), EntreMed, Inc. (NASDAQ:ENMD), Amgen, Inc. (NASDAQ:AMGN), Neuralstem, Inc. (AMEX:CUR), General Electric Company (NYSE:GE), Novavax, Inc. (NASDAQ:NVAX), and Sangamo Biosciences, Inc. (NASDAQ:SGMO).
(Source: Xignite Financials)