Repligen Announces Agreement to Acquire Chromatography Innovator Tantti

Rhea-AI Summary

Repligen (NASDAQ:RGEN) has announced an agreement to acquire Tantti Laboratory Inc., a privately-held company based in Taiwan. Tantti specializes in macroporous chromatography beads for purifying new modalities like viral vectors, viruses, and nucleic acids. The acquisition aims to enhance Repligen's bioprocessing technology portfolio, particularly in the new modality space.

Key highlights of the deal include:

• Integration of Tantti's DuloCore® technology with Repligen's AVIPure® affinity ligands and OPUS® pre-packed chromatography columns
• Expected completion in Q4 2024, subject to regulatory approvals
• Anticipated to be breakeven on adjusted margins and EPS in 2025, becoming accretive in 2026

This strategic move is set to address downstream bottleneck challenges and scalability concerns in bioprocessing, potentially establishing DuloCore as a gold standard for new modality purification.

Positive

• Acquisition of Tantti's innovative macroporous chromatography bead technology
• Expansion into new modality markets with a unique purification solution
• Synergies with existing AVIPure® affinity ligands and OPUS® pre-packed chromatography columns
• Potential to address downstream bottleneck challenges and scalability concerns in bioprocessing
• Expected to be accretive to adjusted margins and EPS by 2026

Negative

• Deal anticipated to be breakeven on adjusted margins and EPS in 2025, delaying immediate financial benefits
• Acquisition subject to regulatory approvals, which could potentially delay or complicate the process

Insights

Financial Analyst

As a financial analyst, I find Repligen's acquisition of Tantti Laboratory to be a strategically impactful move. This deal strengthens Repligen's position in the rapidly growing new modality space, particularly in the purification of viral vectors, viruses and nucleic acids. The synergy between Tantti's DuloCore® technology and Repligen's existing AVIPure® and OPUS® products could potentially create a significant competitive advantage in the bioprocessing market.

From a financial perspective, the acquisition is expected to be breakeven on adjusted margins and EPS in 2025 and accretive in 2026. This suggests a relatively quick path to value creation, which is positive for shareholders. However, investors should note that the deal's financial terms were not disclosed, making it challenging to assess the immediate impact on Repligen's balance sheet and cash flow.

The bioprocessing market, especially for new modalities, is experiencing robust growth. By expanding its capabilities in this area, Repligen is positioning itself to capture a larger share of this expanding market. This could potentially lead to accelerated revenue growth and improved profit margins in the medium to long term, assuming successful integration and market adoption of the combined technologies.

Investors should monitor the integration process and any updates on market reception of the combined technologies, as these factors will be important in realizing the projected financial benefits of this acquisition.

Biotech Industry Analyst

The acquisition of Tantti Laboratory by Repligen represents a significant development in the bioprocessing industry, particularly for new modality purification. Tantti's DuloCore® technology addresses a critical bottleneck in the production of advanced therapies by combining high throughput performance with rapid mass transfer in a flexible bead format.

This acquisition is timely, as the industry is grappling with purification challenges for large molecules like viral vectors and nucleic acids. The DuloCore® technology's ability to offer high capacity and efficiency could potentially reduce production costs and accelerate time-to-market for these complex biologics. This is important in a field where manufacturing constraints often hinder the development and commercialization of promising therapies.

The synergy with Repligen's existing AVIPure® affinity ligands and OPUS® pre-packed columns is particularly noteworthy. This combination could create a comprehensive purification platform that addresses multiple challenges in downstream processing. If successful, this integrated solution could become a gold standard in the industry, potentially giving Repligen a significant competitive edge.

However, the success of this acquisition will depend on Repligen's ability to effectively integrate Tantti's technology and bring it to market. Investors should watch for updates on product development timelines, regulatory approvals and early adoption rates by key players in the bioprocessing industry.

• Proposed acquisition adds novel macroporous chromatography base bead technology for downstream bioprocess applications
  
• Accelerates expansion into new modality markets with a unique, scalable purification solution
• Strongly synergistic with AVIPure^® affinity ligands and OPUS^® pre-packed chromatography columns
  

WALTHAM, Mass., July 29, 2024 (GLOBE NEWSWIRE) -- Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today announced that it has entered into a definitive agreement to acquire privately-held Tantti Laboratory Inc. (“Tantti”) of Taoyuan City, Taiwan. Tantti has developed a unique portfolio of macroporous chromatography beads to optimize the purification of new modalities including viral vectors, viruses, nucleic acids and other large molecule biologics.

Tantti’s DuloCore^® technology platform combines the high throughput performance of membranes with the rapid mass transfer of monoliths in a convenient and flexible bead format. Combined with AVIPure affinity ligands, the technology will provide additional performance advantages such as molecule selectivity, and increased efficiencies to address downstream bottleneck challenges and scalability concerns of manufacturers. The resins can be pre-packed for customers into Repligen’s OPUS Columns, where the company offers the industry’s widest range of sizes for scalability and efficiency.

Tony J. Hunt, Chief Executive Officer at Repligen said, “The addition of Tantti further strengthens our portfolio in the new modality space. Combining Tantti’s innovative bead technology with the content we are generating from Avitide will be game-changing. The industry needs high throughput and high-capacity purification products, and Tantti is the solution to delivering on this. We are excited to welcome the Tantti team to Repligen, and we look forward to further developing and integrating their differentiated technology into our portfolio.”

Joe Yang, Chief Executive Officer at Tantti said, “We have been working with Repligen for a few years now and we are thrilled to combine the power of Tantti’s bead technology with the capabilities of Avitide and to leverage the commercial strength of Repligen to make DuloCore the gold-standard in the marketplace for new modality purification. Repligen is the ideal partner for us to take this next step of growth and we look forward to working with our colleagues at Repligen to accelerate our market presence in bioprocessing.”

The acquisition is expected to be completed in the fourth quarter of this year. The deal is anticipated to be breakeven on adjusted margins and adjusted earnings per share (EPS) in 2025 and accretive to adjusted margins and adjusted EPS in 2026.

Approvals and Financing
The transaction is expected to be completed by year end 2024, subject to the satisfaction of customary closing conditions, including clearance through the Taiwanese regulatory channel. EC Mergers & Acquisitions is acting as financial advisor and Goodwin Procter LLP and Tsar & Tsai Law Firm are serving as legal counsel to Repligen. O’Melveny & Myers LLP and LCS & Partners are serving as legal counsel to Tantti for the transaction.

About Tantti Laboratory Inc.
Tantti Laboratory Inc. is a biomaterials engineering company developing bioprocessing solutions for use in the development and production of innovative biologic products and advanced cell and gene therapies. Its key product technology platforms include DuloCore, a new class of convective chromatography bead resin designed for the purification of large biomolecules (e.g., viral vectors, nucleic acids, and viruses). Founded in 2014 and based in Taiwan, Tantti’s technologies have received patent approval around the world, including in the United States, Europe, Japan, Taiwan and China. Visit https://www.tantti.com to learn more.

About Repligen Corporation
Repligen Corporation is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that enable efficiencies in the process of manufacturing biological drugs. We are “inspiring advances in bioprocessing” for the customers we serve; primarily biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. Our focus areas are Filtration and Fluid Management, Chromatography, Process Analytics and Proteins. Our corporate headquarters are in Waltham, Massachusetts, and the majority of our manufacturing sites are in the U.S., with additional key sites in Estonia, France, Germany, Ireland, the Netherlands and Sweden. For more information about the company see our website at www.repligen.com, and follow us on LinkedIn.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, express or implied statements or guidance regarding the expected results of the proposed acquisition of Tantti Laboratory Inc. (“Tantti”) on Repligen’s future financial performance, including the accretive nature and the timing of the accretive nature of the acquisition, expected synergies and revenue contribution following the closing of the Tantti acquisition, customer adoption of Tantti products and beliefs about the single-use market, the expected expansion of Repligen’s product lines, and other statements identified by words like “believe,” “expect,” “anticipate,” “may,” “will,” “should,” “targeted,” “seek,” or “could” and similar expressions, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with: the risk that the proposed acquisition may not be completed in a timely manner, or at all; the occurrence of any event, change or other circumstance that could give rise to the termination of the acquisition; Repligen’s ability to integrate Tantti’s business and personnel and to achieve expected synergies and accretion; Repligen’s ability to maintain or expand Tantti’s historical sales; Repligen’s ability to accurately forecast the acquisition, related costs and allocation of the purchase price, goodwill and other intangibles acquisition related and other asset adjustments; and other risks detailed in Repligen’s most recent Annual Report on Form 10-K subsequently filed Quarterly Reports on Form-10-Q and Current Reports on Form 8-K on file with the Securities and Exchange Commission, and the other reports that Repligen periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Repligen contemplated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements reflect management’s current views and are based only on information currently available to us. Repligen does not undertake to update, whether written or oral, any of these forward-looking statements to reflect a change in its views or events or circumstances, whether as a result of new information or otherwise, that occur after the date hereof except as required by law. The industry and market data contained in this presentation are based on management’s own estimates, independent publications, government publications, reports by market research firms or other published independent sources, and, in each case, are believed by management to be reasonable estimates. Although we believe these sources are reliable, we have not independently verified the information.

Tantti Contact:
Steve Wang
Financial Advisor to Tantti
+886 9 19456003
steve@tantti.com

Repligen Contact:
Sondra S. Newman
Global Head of Investor Relations
(781) 419-1881
investors@repligen.com

FAQ

What company is Repligen (RGEN) acquiring and what does it do?

Repligen is acquiring Tantti Laboratory Inc., a privately-held company based in Taiwan that specializes in macroporous chromatography beads for purifying new modalities like viral vectors, viruses, and nucleic acids.

How will the Tantti acquisition benefit Repligen's (RGEN) product portfolio?

The acquisition will enhance Repligen's bioprocessing technology portfolio, particularly in the new modality space. It will integrate Tantti's DuloCore® technology with Repligen's AVIPure® affinity ligands and OPUS® pre-packed chromatography columns, addressing downstream bottleneck challenges and scalability concerns.

When is the Repligen (RGEN) acquisition of Tantti expected to close?

The acquisition is expected to be completed in the fourth quarter of 2024, subject to customary closing conditions and regulatory approvals.

What is the financial impact of the Tantti acquisition on Repligen (RGEN)?

The deal is anticipated to be breakeven on adjusted margins and adjusted earnings per share (EPS) in 2025 and accretive to adjusted margins and adjusted EPS in 2026.