Repligen Corp. (RGEN, Financial) filed Quarterly Report for the period ended 2012-06-30.
Repligen Corporation has a market cap of $144.4 million; its shares were traded at around $4.67 with a P/E ratio of 117 and P/S ratio of 5.3.
Cost of product revenue was approximately $7,345,000 and $1,553,000 for the three-month periods ended June 30, 2012 and 2011, respectively, an increase of $5,792,000 or 373%. This increase is primarily due to the addition of the Novozymes Biopharma Business and related product mix, the increase in bioprocessing product sales noted above and other individually insignificant manufacturing variances. While we have begun to reduce headcount and related costs at Repligen Sweden, we anticipate that gross margins will be lower in the twelve-month period ending December 31, 2012 as compared to the same period in 2011 because a significant percentage of our bioprocessing products are now manufactured in our facility in Sweden which has a higher cost of product revenue.
Sales of bioprocessing products for the six-month periods ended June 30, 2012 and 2011 were approximately $21,002,000 and $7,509,000, respectively, an increase of $13,493,000, or 180%. This increase is primarily due to the addition of the Novozymes Biopharma Business and an increase in bioprocessing product sales orders from a large customer. A majority of the bioprocessing products that we manufacture are based on recombinant Protein A and are sold to customers who incorporate these products into their proprietary antibody purification systems to be sold directly to the pharmaceutical industry. Monoclonal antibodies are a well-established class of drug with applications in rheumatoid arthritis, asthma and a variety of cancers. Sales of our bioprocessing products are therefore impacted by the timing of large-scale production orders and the regulatory approvals for such antibodies, which may result in significant quarterly fluctuations in product revenue. Such quarterly fluctuations are expected but they may not be predictive of future revenue or otherwise indicate a trend.
Cost of product revenue was approximately $12,618,000 and $2,946,000 for the six-month periods ended June 30, 2012 and 2011, respectively, an increase of $9,672,000 or 328%. This increase is primarily due to the addition of the Novozymes Biopharma Business and related product mix, the increase in bioprocessing product sales noted above and other individually insignificant manufacturing variances. While we have begun to reduce headcount and related costs in Sweden, we anticipate that gross margins will be lower in the twelve-month period ending December 31, 2012 as compared to the same period in 2011 because a significant percentage of our bioprocessing products are now manufactured in our facility in Sweden which has a higher cost of product revenue.
Selling, general and administrative expenses were approximately $6,847,000 and $4,728,000 for the six-month periods ended June 30, 2012 and 2011, respectively, an increase of $2,119,000 or 45%. This increase is largely attributable to increased headcount and transaction costs associated with the Novozymes Acquisition, as well as increased commercialization expenditures prior to receipt of the CRL from the FDA for RG1068 and increased sales and marketing activities related to our decision to focus our internal efforts on our bioprocessing business.
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Repligen Corporation has a market cap of $144.4 million; its shares were traded at around $4.67 with a P/E ratio of 117 and P/S ratio of 5.3.
Highlight of Business Operations:
Sales of bioprocessing products for the three months ended June 30, 2012 and 2011 were $11,659,000 and $4,358,000, respectively, an increase of $7,301,000, or 168%. This increase is primarily due to the addition of the Novozymes Biopharma Business and an increase in bioprocessing product sales orders from a large customer. A majority of the bioprocessing products that we manufacture are based on recombinant Protein A and are sold to customers who incorporate these products into their proprietary antibody purification systems to be sold directly to the pharmaceutical industry. Monoclonal antibodies are a well-established class of drug with applications in rheumatoid arthritis, asthma and a variety of cancers. Sales of the bioprocessing products we manufacture are therefore impacted by the timing of large-scale production orders and the regulatory approvals for such antibodies, which may result in significant quarterly fluctuations.Cost of product revenue was approximately $7,345,000 and $1,553,000 for the three-month periods ended June 30, 2012 and 2011, respectively, an increase of $5,792,000 or 373%. This increase is primarily due to the addition of the Novozymes Biopharma Business and related product mix, the increase in bioprocessing product sales noted above and other individually insignificant manufacturing variances. While we have begun to reduce headcount and related costs at Repligen Sweden, we anticipate that gross margins will be lower in the twelve-month period ending December 31, 2012 as compared to the same period in 2011 because a significant percentage of our bioprocessing products are now manufactured in our facility in Sweden which has a higher cost of product revenue.
Sales of bioprocessing products for the six-month periods ended June 30, 2012 and 2011 were approximately $21,002,000 and $7,509,000, respectively, an increase of $13,493,000, or 180%. This increase is primarily due to the addition of the Novozymes Biopharma Business and an increase in bioprocessing product sales orders from a large customer. A majority of the bioprocessing products that we manufacture are based on recombinant Protein A and are sold to customers who incorporate these products into their proprietary antibody purification systems to be sold directly to the pharmaceutical industry. Monoclonal antibodies are a well-established class of drug with applications in rheumatoid arthritis, asthma and a variety of cancers. Sales of our bioprocessing products are therefore impacted by the timing of large-scale production orders and the regulatory approvals for such antibodies, which may result in significant quarterly fluctuations in product revenue. Such quarterly fluctuations are expected but they may not be predictive of future revenue or otherwise indicate a trend.
Cost of product revenue was approximately $12,618,000 and $2,946,000 for the six-month periods ended June 30, 2012 and 2011, respectively, an increase of $9,672,000 or 328%. This increase is primarily due to the addition of the Novozymes Biopharma Business and related product mix, the increase in bioprocessing product sales noted above and other individually insignificant manufacturing variances. While we have begun to reduce headcount and related costs in Sweden, we anticipate that gross margins will be lower in the twelve-month period ending December 31, 2012 as compared to the same period in 2011 because a significant percentage of our bioprocessing products are now manufactured in our facility in Sweden which has a higher cost of product revenue.
Selling, general and administrative expenses were approximately $6,847,000 and $4,728,000 for the six-month periods ended June 30, 2012 and 2011, respectively, an increase of $2,119,000 or 45%. This increase is largely attributable to increased headcount and transaction costs associated with the Novozymes Acquisition, as well as increased commercialization expenditures prior to receipt of the CRL from the FDA for RG1068 and increased sales and marketing activities related to our decision to focus our internal efforts on our bioprocessing business.
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