Repligen Corporation has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the fiscal years 2023 and 2022. The company, headquartered in Waltham, Massachusetts, specializes in developing and commercializing bioprocessing technologies and systems for use in biological drug manufacturing processes. Repligen's products include Protein A ligands, cell culture growth factor products, chromatography products, filtration products, and process analytics products. The company primarily serves life sciences, biopharmaceutical, and diagnostics companies, laboratory researchers, and contract manufacturing organizations.
In the 10-K report, under ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Repligen highlighted its exposure to non-U.S. exchange rates due to a significant portion of its revenue and expenses being denominated in currencies other than the U.S. dollar. The company also discussed the impact of global macroeconomic trends, including cost inflation in raw materials and supply chain costs, as well as the decreasing demand for COVID-19-related products affecting future product demand. Repligen emphasized that it has taken actions to mitigate supply chain disruptions and inflation, including price increases and productivity improvements.
Moreover, the report delved into critical accounting policies and estimates, particularly focusing on revenue recognition, inventories, and business combinations. Repligen detailed its revenue recognition process under Accounting Standards Codification (“ASC”) Topic 606, emphasizing the measurement of revenue as the amount of consideration expected to be received in exchange for transferring products or services to a customer. The company also discussed its inventory valuation method, including provisions for excess and obsolete inventory, and the impact of the COVID-19 pandemic on inventory adjustments in 2024. Additionally, Repligen highlighted the significant estimates and assumptions made in the purchase price allocation process for business combinations, particularly in valuing intangible assets and deferred revenue obligations.
Furthermore, the 10-K report provided insights into the company's intangible assets and goodwill, outlining the amortization of intangible assets with a definite life and the annual impairment testing of indefinite-lived intangible assets and goodwill. Repligen detailed the conditions that would indicate impairment and trigger an interim impairment assessment, emphasizing the need for qualitative and quantitative assessments to determine goodwill impairment.
Today the company's shares have moved 5.0% to a price of $149.5. Check out the company's full 10-K submission here.
