Repligen Q4 Profit Down; Guides FY14 - Quick Facts

(RTTNews) - Repligen Corp.(RGEN) said that net income for the fourth quarter of 2013 was $3.3 million, a decrease from $9.6 million for the same period in 2012. Earnings per share for the fourth quarter were $0.10 compared to $0.30 last year.

During the 2013 quarter, the company recorded an $800,000 provision based on an ongoing tax audit to determine whether certain historical R&D tax credits will prevail. During the fourth quarter of 2012, the company recognized a $3.0 million tax benefit from our U.S. net operating losses (NOLs).

Total revenue for the fourth quarter of 2013 was $15.4 million compared to $18.8 million for the same period in 2012, a decrease of 18.2%. This decrease was primarily the result of a $5.0 million upfront payment from Pfizer, Inc. (PFE) recognized during the 2012 period under the terms of an outlicensing agreement for the Company's spinal muscular atrophy (SMA) clinical development program.

Total revenue for 2014 is expected to be $54-$57 million, including the $2 million upfront payment from BioMarin to be recognized during the first quarter of the year. Our revenue projections no longer include the receipt of royalties from Bristol-Myers Squibb on its U.S. sales of Orencia® due to the expiration of this obligation on December 31, 2013.

Total product revenue for 2014 is expected to be $52 million - $55 million, reflecting 10%-15% growth. Total income from operations for the full year 2014 is expected to be $10 million - $12 million. Total net income projection for 2014 is $7 million - $9 million.

The company expects to end the year 2014 with $84 million - $87 million in cash and investments.

The following guidance for the year 2014 is based on expectations for our existing business and does not include the impact on our revenue and expenses of potential milestone payments from Pfizer or BioMarin, the financial impact of potential bioprocessing acquisitions or fluctuations in foreign currency exchange rates.