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.

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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.”

Key Stats:

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).

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(Source: Xignite Financials)

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