RGEN - Will Clinical Trial Delays Derail Repligen's Growth?
When Repligen (NASDAQ: RGEN) reports first-quarter 2020 earnings this week, investors will be expecting a downturn from the coronavirus pandemic. That's because the bioprocess engineering leader generated 65% of full-year 2019 revenue from customers engaged in clinical trials. Many pharmaceutical companies have delayed the start of new drug-candidate studies to ease the burden on the nation's healthcare system and avoid putting vulnerable patient populations at unnecessary risk.
That creates an interesting dynamic for investors. On the one hand, current events seem likely to derail the business from its impressive growth trajectory, at least temporarily. On the other hand, investors should acknowledge that Repligen began 2020 with profitable operations and a record cash position of $528 million, which suggests the company can endure a prolonged downturn. It's also well positioned to become a valuable partner for companies developing treatments and vaccines for SARS-CoV-2, the virus that causes COVID-19.
Nonetheless, investors will be closely monitoring the health of Repligen's clinical customers when the company reports first-quarter 2020 operating results on Wednesday. Here's why it matters and what to look for.