Perfect. Good afternoon, everyone. This is Rachel Vatnsdal with the Life Science Tools and Diagnostics team. I'm joined today by Tony Hunt, CEO of Repligen. So this presentation will be 40 minutes. The first 20 minutes or so will be presentation, followed by 20 minutes of Q&A. If any of you in the audience have questions, please feel free to either submit them on the app or you can ping me and reach out directly. With that, I will pass it off to Tony.
Great. Thanks, Rachel and great to be here and appreciate getting an opportunity to talk about Repligen at JP Morgan again. I'm going to spend maybe 5 minutes trying to address maybe some of the what's happening in the bioprocessing industry in 2023. I'm not gonna give guidance on 2024, so sorry for disappointing people on that one. But I do think that it's important kind of to get our perspective on where we think the bioprocessing industry is as we jump into 2024. So we're actually optimistic. We see that there's definitely some signs of improvement in the market. If you look at what the challenges were throughout 2023, there was clearly the CDMO destocking that happened and has continued to happen as we've gone through the full year.
Pharma, In Q1, mid-Q1 and in Q2, we definitely saw some destocking in pharma. We saw project delays, we saw conservatism in capital spend, we saw contraction as well in funding for the startup biotechs that impacted not only U.S. and Europe, but also Asia and then the China macro headwinds, again kind of hit in Q1 for Repligen and, stayed with us through the end of the year. So pretty tough year. Despite that, we're actually seeing some positive signs and the biggest one for us is our opportunity funnel. So when we talk about our opportunity funnel, we're talking about, what's out there for our commercial team to close. That's above 50% and that funnel, between the beginning of the year and November, was up 50%. So that's really encouraging.
You could see the results in Q3, where our orders were very strong. We had a book-to-bill of 1.07. But more importantly, our filtration division, which is our biggest division in the company, had a book-to-bill of 1.15. So that's really encouraging. So as we sort of walked through the year and we realized that 2023 was gonna be a tough year, 2024 is going to be a transition year, we still wanted to stay true to who we are when it comes to our overall strategy. So we weren't, we weren't sort of quiet. We went out and executed on an M&A.
We acquired Metenova in Q4, which brings mixing technology into the company and we also launched some really good products. So we enhanced our ATF product line with the ATF controller. We brought out the first holderless, self-contained, flat sheet cassette in the fall and then also launched last year, the first real-time process monitoring instrument for doing drug concentration measurement in-line. So that started at the beginning of the year for the process development labs. So our lens as we move into 2024, is that 2024 will be a turning point for bioprocessing. We expect 2025 to be a much more robust growth year for us, double-digit growth. If you look at the last 5 years, we've had a 27% CAGR growth in revenue for Repligen.
W e go into 2024 with some confidence. We think the first half of the year is going to be better than the second half of last year and the second half of this year will be better than the first. We haven't really figured out yet what overall growth is going to be, but when we get to February, we'll bring you up to speed on that. So moving now to the kind of where Repligen is in the bioprocessing market and why we feel confident that we're on a great trajectory as a company. One, we are the clear innovation leader in bioprocessing and it's a great accomplishment for a smaller company that over the last 10 years, we've been able to establish ourselves and put ourselves in that position.
We finished the year 2023 somewhere close to the midpoint of our guidance, around $640 million. As I said, we had 27% CAGR over the last 5 years, 21% average growth. The way we've gotten to the position we are in the market is through M&A deals and R&D. We've done 12 M&A deals since 2016 and created four distinct franchises that I'll talk about in a few minutes. But we've also launched 12 disruptive technologies and that's the sort of secret sauce of Repligen, right?
It's all about finding great technology, developing great technology and it either comes through M&A or it comes out of our R&D group and those technologies are really standalone in the industry, highly differentiated, very little competition and that allows us to grow at a rate that's above the market. The other part of our story that I think is important is that when you look at our customer base, 35% or a third of our customers are using our products in commercial processes, whereas two-thirds of the customers are using it in clinical. So we see the clinical pipeline as a real tailwind for us and should allow us to grow above the market growth rate as we go through the next 5 years. So when you think about the markets, we kind of split markets into two, right?
We have the mAb biosimilar market and then we have the New Modality market. So in the world of mAbs and biosimilars, last year was a good year, right? 12 drugs approved, 5 biosimilars approved as well, for a total of 17. We're well represented among those 17 drugs with products that we have at Repligen today and the reason is, we're the leader in process intensification. So when you think about biosimilar customers and what they need when they want to bring out a biosimilar, it's really get more out of the bioreactor and so you can do that with our ATF technology. We're also addressing many of the needs in downstream.
C hallenges with systems and advanced analytics, we're addressing those problems and we'll talk a little bit more about how we're starting to integrate unit operations, which we think will be the future of Repligen for the next 5 years. Now, when you move into the world of new modalities, again, a really good year in terms of approvals, more than what we've seen in prior years, so 7 approvals. Fifteen drugs up for approval again in 2024. Again, good representation for us in these drugs and when we look at how we've done in the new modality space, about half of our revenue comes from AAV and about a third of our revenue comes from mRNA and the rest comes from a combination of Lenti and CAR T.
Our CAGR, just like our CAGR for the company, has been pretty robust for the last five years. The last three years in the cell and gene therapy space or new modality space has been an average of 28% growth. Again, the reason we're winning and doing well in this space is, one, our upstream process intensification tools are market-leading. Our customers who are scaling are using our technology and when you look at a market last year that was actually had some real challenges with early biotech funding, with over 25 accounts who are scaling with us, generating greater than $1 million in revenue and overall revenue for new modalities last year came in around 20%.
A good story and it's where the future is going to be as we grow and expand over the next few years. What about our addressable market? When you look at the bioprocessing market, our estimate of bioprocessing is about $20 billion. Our addressable market is $12 billion. We have four franchises, ranging from Filtration to Process Analytics to Chromatography and to the Proteins business. But by far, our biggest franchise is Filtration and Fluid Management. When you look at the growth there over the last three years, 25% growth, we have about 5% market share. If you look at our other franchises like process analytics and chromatography, again, 20% average growth or three-year CAGR growth.
The one business that's been lower than 10% is our proteins and resins and that's pretty clear as the partnership with Cytiva over the last few years has kind of wound down. W e've moved in a different direction in terms of what we want to do in the world of proteins through our partnership with Purolite and through the new ligands that we're developing through Avitide, which was an acquisition we did a couple of years ago. O verall, market addressable market is in a good place for Repligen and as you can see, we're growing nicely above the market. J ust to emphasize everybody talks about how great bioprocessing has done through the COVID years.
I f you start to look at what was Repligen before COVID for the core franchise? We were about $270 million in 2019 and if you look at our midpoint of our guidance for 2023 at $640 and you take out about $30 million, we're a little over $600 million. So we've done actually really well in our base business, non-COVID, generating revenue and that's a testament to the highly differentiated portfolio of products that we have and this is now the new foundation for where Repligen is going to grow and go over the next few years.
T hinking through the blueprint for success, now, I've presented this a number of times over the years, but as I walk through today, Y ou're gonna see a slightly different view of how we're going to win over the next 5+ years. S trategic M&A is still a big part of what we do. It's all about acquiring differentiated companies and technologies and filling gaps in our portfolio. The R&D piece is the same. It's around developing technologies where we can be first to market, because we feel in an industry where we're a smaller player, we have to differentiate ourselves. We differentiate ourselves with technology and we try and be first to market with innovation.
T hen the last part is around commercial and operational execution and it's around how do we strengthen our commercial organization and then how do we move towards improving margins? 'Cause margins have weakened over the last 18 months as the COVID revenue has wound down. So before I jump in to walking you through a little bit of the M&A strategy, I just wanna kind of level set everybody in terms of where we are in the workflow. So this is a typical mAb workflow and if we had gone back 5, 6, 7 years ago, you'd probably see 2, 3 products represented here on this figure showing where Repligen plays. But we've evolved and we've evolved to, to an extent now that if you look at upstream or downstream, we're really well represented. We play a big part in the cell culture seed train.
We play an even bigger part in production and harvest. We're working really well with customers on the purification side and doing a lot of work in UF/DF. You can see a lot of the products at the bottom of the slide here. Each and every one of these products is actually very differentiated, which allows us to compete and win in the market. But to get there and to show you what we have right now, you kind of have to think about what's our M&A strategy been, because many of these products have come from deals we've done over the last 9 years. So the most important part for us about doing M&A is that we stick to our guns in terms of the types of deals we like. We like companies that have technology differentiation.
We like companies that fill a gap in our portfolio, that strengthen one of the franchises that we have. Typically, they're underinvested in an area. They might be underinvested in commercial, they might be underinvested in operations. We like to be able to go in and see what we can do to fix and then take it to another level. So attractive margins are important and accretion within a year of doing the deal is also important. I f you look at the four franchises that we have and you look at how each franchise has evolved, in filtration we've done a number of deals, but what it's allowed us to do is now we are the market leader in process intensification and we've been able to expand into new modalities.
W hen you think about the 20% revenue in 2023, that wouldn't happen if we weren't doing what we're doing in the world of process intensification. On the systems side, we really only jumped into the systems business when we acquired Spectrum in 2017. But with the acquisition of ARTeSYN, we were able to really add both chromatography filtration systems into what we already owned with Spectrum and that's allowed us to build out this comprehensive portfolio of systems and move into a market that's been dominated by some of the bigger players for the last 20+ years and we're doing quite well and now with the integration of analytics, we're beginning to truly differentiate ourselves with our systems portfolio.
In chromatography and analytics, it's all about how we take those technologies and start to integrate and use them with the rest of our portfolio. C Technologies been a great acquisition for us. We talked just a minute ago about integration into systems, but it's allowed us to expand into new modalities as well and that's the same case with Avitide. Avitide has got great content. We've been able to bring new ligands to market through our partnership with Purolite and we've also been able to bring new resins to market through going direct with here at Repligen and then the final piece of what we've been building out over the last four or five years is fluid management and we've done a number of deals.
When you look at it, what we've done is we've gone out and bought a bunch of components that are really needed in fluid management. But our goal is not to go sell the components and do a much better job of selling components. It's really about integrating those components into more advanced assemblies and integrating those assemblies into our systems and that, again, has gone well and it puts us in a really good position and it shows you how you can create value and when you do deals like what I just described, you end up with products like what's on this slide, right?
W hether it's ATF technology and process intensification, or OPUS columns or systems or fluid management, the goal is that how do you take a kind of wide variety of products and actually create some real value for the customers and then for shareholders and for Repligen? And so we've over the last say three or four years, we've really worked on how do we integrate these types of technologies together and I'm gonna give you a few examples of how we've done that because this is the future of where the company is going. So in the, in the area of small-scale systems, we've been able to take KrosFlo KR2i, which is a benchtop system used in filtration used in all the process development labs. At the beginning of last year, we integrated a FlowVPE technology into that system and it's done incredibly well.
All our customers, every customer in the world wants to measure drug concentration measurement. We're the only company really providing that type of solution in real time. What we've done is just provided it to customers at a benchtop level. As we go through the next 12 months, you're going to see us move to more PAT-driven GMP systems and so in the large-scale systems, what's represented here in the 6 call-outs are all the technologies we've acquired or developed and now we can integrate them into these large-scale systems. It gives you this back-end integration for our customers, so there's control over the supply chain but more importantly, we're able to add recurring consumable streams into the systems that we're selling.
Then when you think about consumables, right, what we would have spoken about for the last 5 to 7 years is we have OPUS columns and we have hollow fibers. But because of the deals we've done and the way we're thinking about integrating, we're now adding more consumables. We're putting valves, pinch valves and steam-through valves into facilities that have disposable plastic tubing, which is a consumable. We've been able to add on flow paths and assemblies to all our consumables, again, generating additional revenue for the company. Finally, the last piece of the puzzle is: how do you move into new modalities? So a very good example is the development and launch of the RS-20 system for gene therapy, which we did a little over 12 months ago. Everything that's in this system is really Repligen-developed, Repligen-made.
Couldn't have done this if we hadn't done the acquisitions that we've put in place and this type of product then puts us in a very strong competitive position in the marketplace. So once you think about the types of products you can do through M&A, then you think about r&d and in the world of R&D, you can't stand still, right? And so the last 12 months have been really busy. In the first half of last year, we launched the next-generation ATF controller. It's market-leading. It's really been a brilliant product put in the marketplace. Customers really appreciate the extra value that we've brought to them and we've been listening to the needs over the last 10 years and this product is doing quite well in the market. We also launched the first holderless flat sheet cassette system.
Cassettes and they were launched in the second half of last year. What you're gonna see in the first half of this year is the first PAT GMP systems with the FlowVPE technology fully integrated into the systems, which will now go onto the manufacturing floor. Again, a big innovation for Repligen. The last part of the strategy is around operational and commercial excellence. Clearly, over the last 18 months, 2 years, you can see how our margins have dropped off from the high 50s down to the 50% and in Q3 into the mid-40s. Clearly, there was something we needed to do, so we've been working on right-sizing and optimizing the company. We're leveraging our productivity programs that we've put in place at the company.
We're looking at optimizing our indirect COGS spend and then prioritizing OpEx, whether it's prioritizing the projects we want to do in R&D, prioritizing what we want to do with the commercial organization. But in the end, it's all around driving efficiency and simplification in our company and we've made some good progress and you'll start to see that as we go through the next 12 months. So this should all start to play out in your financials and so when you look at our revenue growth, right from the beginning of the presentation, 21% average growth. W e've compelling above-market revenue growth for the company. We've had historically attractive margins that have been north of 55%. We need to get back there over the next few years.
We've put the plan in place to do that and that's through cost discipline and that's something that we're spending definitely a lot more time in the last 12 months, putting those type of programs in place. We're generating solid cash flow and you can see, based on the convert that we did back in Q4, that we're in a really nice position with over $700 million in cash. So when you think about our long-term strategy, where M&A is a big part of what we want to do, this puts us in a nice position to be able to execute in 2024 and 2025 on some deals. I n summary, we're really well-positioned. Clearly, 2023 was a challenging year, but there's some signs of hope, right?
We've seen with the order strength in Q3, which carried through into October in q4 and we'll talk about in February where we finished the quarter. We're clearly capturing share in new modalities and it's because of the differentiated portfolio of products that we have. We've increased our focus on margin expansion and as we go through the next few years, you'll start to see our margins move back up to where they should be and in general, optimistic about the bioprocessing markets and where the markets are going to go. Again, we see 2024 as a transition year, 2025 moving back into more traditional double-digit growth for a company like Repligen. So with that, I'll stop and chat with Rachel.
Awesome. Thank you, Tony. F irst up, I just want to kind of touch on some of these 4Q trends that you've been seeing. You were one of the few players to kind of highlight an inflection in order book trends, book-to-bill above one during 3Q. Can you spend a minute talking about how did that trend throughout October, november and then December here as we kind of close out the quarter? Did you continue to see some of that strength in the book-to-bill and order rates? Any pockets of weakness to call out as well?
W e're not going to go through where we are in Q4, but I will say this that the most important part of our story in 2023 was the fact that our funnel started to strengthen and when we reported out in August, we talked about the fact that our 75% to 90% funnel was up significantly versus what we had seen in prior quarters and we expected that that would result in increased orders. So the Q3 results with book-to-bill of 1.07 and 1.15 for filtration probably wasn't too surprising given the strength of the funnel that we had.
Then in that Q3 timeframe, we also replenished the funnel and we replenished it to the point where it was up 10% versus where it started at the beginning of the quarter. While it was clearly skewed towards 50% and above opportunities, we were really encouraged about where that ended up and the and the orders stayed strong through October. We'll talk about in February where they were at the end of Q4. Again, we feel like the pharma part of the market has definitely recovered. CDMOs haven't recovered fully. When CDMOs recover, we'll see a much better story for bioprocessing in 2024.
That's helpful. Maybe just to clarify some of those comments then on the pharma trend. So has some of the strength that you saw with those larger pharma customers continued the last few months? And then did you say that CDMOs, we haven't really found a bottom yet and more specifically, how do we think about that within some of the larger Tier I type of CDMO s versus some of the smaller Tier II, Tier III?
M aybe start with the CDMO piece. The CDMO, you could take a subset of the CDMO market and you could show growth.
There are some players who are doing quite well. T he CDMOs that are probably more exposed to the small, medium biotech, they've seen more challenges than the larger CDMOs that are maybe more focused on commercial opportunities. But in general, we have seen some recovery in the CDMOs as we moved through Q3 and into early Q4, but not enough to call an inflection point. W e need to see a little bit more from the CDMO market before we say that and then on the pharma side, the pharma market has been robust since the end of Q2.
T hat's helpful. Maybe can you just spend a minute talking about your visibility in your order book right now? You mentioned that the funnel remains strong. T his is a very highly visible type of market that we play in but it hasn't been so much during 2023, given the volatility. So what's your current visibility? What is it at, at peak? And then when can we get back to that level?
I would say it's what I said a few minutes ago, which is the funnel the size of the funnel has increased by about 50% since the beginning of the year and so that gets you right up till November. So you can imagine it probably hasn't changed too much in the last sort of 6-8 weeks of the year. W e're really happy with where our funnel is and we feel like what has to happen as we go through the first half of 2024 is execution. So we have a lot of opportunities. We need to close them out. W e've made some, brought some new players onto the team, with Olivier joining back in October, so he brings a strong commercial sense.
H e's running commercial, he's running the business units and having somebody like that able to drive day-to-day sort of commercial execution, It' s going to pay off.
Helpful and then just on 2024, I appreciate you're going to give us guidance on the earnings call, but you mentioned that you expect 2024 to be a recovery year. So how should we conceptually be thinking about the pathway to recovery and how quick that inflection could be this year?
I'll be surprised if the first half of 2024 is even on a par with the first half of 2023. Most people expect and so do I, that the first half of 2024, while it will be better than the second half of last year for Repligen, it's still not going to be on par with what we saw in the first half of 2023. T he challenge is that our industry while revenue in 2022 was very strong, orders actually started to weaken. The same thing happened in 2023. So the order rate has to increase and the book-to-bills have to move above 1 for the industry to see growth.
R ight now, if you think about the last six months to a year, our industry as a whole has had less than one book-to-bill. The starting point isn't the revenue we all finished with at the end of the year. Starting point is really the orders, the size of the order book going into the year and that's where you're going to see growth from.
Perfect. That's helpful. Maybe just spend a minute on pricing and your expectations into 2024. T ook a lot of price during the peak in the COVID years. How are you expecting that to play out this year?
I f you go through the last 3 or 4 years the whole industry has been hit with significant increases on raw materials and components that we buy from our suppliers and that has been passed on to our customers. A s we move to 2023, it was pretty clear that inflation is not going to be significant in 2024. So our expectation is that while our prices will go up 2-3% on average in 2024, realized price at the end of the year is probably going to be flat. We don't expect really any increase or any contribution from price in 2024.
T hat's helpful. Maybe just on the long-term target. A t your last Analyst Day, you introduced your long-term targets of $2 billion in revenue by 2027 or 2028. That implies roughly a 20% CAGR. A lot has changed since then. C onceptually though, how should we think about that 20% CAGR as we exit this recovery period for Repligen?
I t's nice to get the $2 billion question. W e were all very bullish back in 2021 and 2022 as bioprocessing was booming.A s we get out of 2024, there's no doubt in my mind that 15%-20% type growth rates are well very achievable and 20% for sure, given the portfolio that we have and what's going to be the key here is market growth. If market growth is 5%-10%, then we can grow 5%-10% above market. If market growth is 12%, we're going to be above that 20% overall growth, because we've shown that we can grow well above market.
For me, the key also will be the progression of all the opportunities we have in the clinical funnel, where customers are using our products in clinical trials. So as those products move through and get approved, they become a tailwind for us. It's very achievable once we get through 2024.
Maybe just following up on your comment there on market growth, how are you thinking about the market growth right now? Even more on that long term as well. That's a question that we frequently get from investors trying to understand, is there structurally something that's happened and shifted in these underlying markets?
No, I don't think there's anything structurally different in the markets. I've been in this industry for quite a while. I f I go back from 2000 to 2014, 2015, typical growth in bioprocess was 8%-12%, right? And I just don't see that changing dramatically, right? I n a normal year, bioprocess growth should be in 8%-12%. In a really, really good year, it's probably up around 15%.
T hat's helpful. Maybe shifting over to some of your products then. So for proteins specifically, your 2023 guidance implies a decline of 10%-15% for the year. So can you just kind of walk through the puts and takes for proteins as we head into 2024? And then how should we think about the medium- to long-term potential of this business?
.L ast year's guidance was really a reflection of the drop-off in Cytiva volume, which has been happening over the last few years. A gain, in 2024, we'll have kind of the last drop-off in revenue, so expect that proteins will be down. We'll give a lot more guidance when we get to the end of February. But for us, really, the challenge has been replacing lost revenue that you had with new revenue and look what we do with Avitide with new ligands, is important and we've shown our ability to develop novel ligands that we can now partner with Purolite on.
Clearly, our strategy in Protein A is continue to be an OEM manufacturer for the other players and we've really placed a bet on developing innovative ligands and partnering in the Protein A world with Purolite and partnering with them for the foreseeable future.
Helpful. Maybe shifting over to fluid management then in that business. In the past, you've previously talked about your expectation to be able to contribute $200 million in revenue by 2027 for fluid management. A gain, just given how dynamic this year has been, do you think that that $200 million in revenue is still can be reached by 2027? And then what could you do to really accelerate or what could also decelerate and hurt fluid management's growth as well?
T he fluid management portfolio, w e've done a good job of building it out. W e were on a really strong trajectory until the destocking happened. I would say fluid management on the component side really suffered a lot in terms of destocking, 'cause people had purchased multi-year quantities of the component side of fluid management, whether it's clamps or it's tubing or it's valves or it's sensors. They were the typical components that everybody was buying and stockpiling in that kind of a year to two years or even more. What we've done is we've pivoted and we were always going to do this anyway, but pivoted towards integrated assemblies and integrated flow paths. So that side of the business has actually done really well, even in over the last two years.
Because of our acquisitions in 2023, where we bought a small bag business and we bought a mixing technology business, those are gonna be real catalysts for us and the hitting $200 million by 2027 is still very achievable for us.
Helpful. Maybe shifting over to Process Analytics. That business has been performed really well this year, despite some of the headwinds across the sector. So can you talk about what differentiates your Process Analytics business and then how should we think about its long-term trajectory there?
N o, it's one of those businesses that has done incredibly well through the downturn in the markets over the last 18 months. T he reason that we've been successful is, one, our products are incredibly differentiated. There really is no competition for the SoloVPE and FlowVPE technologies and we have a dedicated team. So one of the things we did when we did that deal is we realized that to make an analytics team successful, rolling that product portfolio into the broader sales force wasn't the right strategy. W e created and developed and brought on board a dedicated team, which is both sales, field applications and field service.
T hat kind of customer-centric, dedicated team has made a big difference for us and y ou have to have the right products to do that and we've been evolving, right? We've definitely added new products in over the last two or three years. A s long as we continue to evolve and to bring new products into the portfolio.. and I'd say the last piece of the puzzle is, where do you go next in the world of advanced analytics? So I like to call it advanced analytics because I want to see advanced analytics get integrated into all our unit operations, so we can do real-time measurement.
T he investment we've made in M-IR is something over the next one to five years that you're gonna see a kind of a similar return, where it's a product that solves many problems in the marketplace and we need to kind of miniaturize and be able to integrate that into our systems over the next couple of years.
Got it. That's helpful. Maybe as a follow-up, just since you were talking about some of the new products. New products have been an essential part of Repligen's strategy here and some of that top-line growth as well. So what kind of new products could we expect in 2024 and maybe 2025 as well? And then are there any particular product categories or technologies that you're particularly excited about?
I f you look at each of our franchises, there's clearly new products coming through. I n the presentation, you could see that in the first half of 2024, you will see advanced analytics getting integrated into our GMP systems. We're working on launching a mRNA-dedicated system, which will come out in the first half of the year as well and you'll see some new ligands hit the market and other products in the portfolio as we go through the year. L ook, we're gonna be launching new products. It's part of our dna and I t's what keeps us ahead.
Perfect. Then maybe shifting over to capital deployment. So you've done a few deals this year. Wanted to see if you could give us an update on how integration is going for both of those deals and then more specifically, how should we think about capital deployment going forward? Are there any other gaps in the portfolio that you're looking at from an inorganic perspective?
I f you look at the two deals we did this year, one was a small bag business. The rationale behind doing that deal was we knew in the fluid management space, we needed to get into bags. The guys at Flexa had done a really nice job in terms of developing their portfolio. We've been able to expand it and you'll see as we go through the first half of the year, you'll see kind of products that are Repligen combined with Flex, sort of integrated products that we'll bring to the market that are bag-based. So the integration's been very straightforward. It's very much an integration that's operations-based as opposed to commercial. It fits. They had a very small commercial team, so we were able to just slide them quite nicely into our commercial organization.
T hen Metenova, we did in the end of Q3 and so far that's gone really well. Look, we really are a big believer in mixing technology. They're the market, one of the market leaders for reusable mixers. We wanna take their technology and turn it into the single-use mixing portfolio. A gain, as we go through this year, probably second half of this year, you'll start to see products coming through. Culturally, really nice alignment and a really good fit with what we're doing in the world of fluid management. Capital deployment, I probably can't give you the laundry list of gaps that we have, but every single portfolio, every franchise, we have some gaps.
We just take the criteria I outlined in my presentation around trying to find companies that have great technology, number one, that's differentiated, fills a gap. Y ou'll still see us do deals. W e tend to do a deal per year, sometimes 2, sometimes 3 and you'll still see us do those type of deals as we go through the next few years.
Perfect. Very helpful. Then maybe in the last minute or so here can you just talk about what do you believe is the most underappreciated part of the Repligen story?
W hat's probably most underappreciated is the expansion of the portfolio that we have and and how deep into the bioprocessing customer base we now reach, right? People still see us as as a ATF OPUS Protein A company, but we're doing so much more than that and our customers see it, realize it and they've kind of validated that in terms of putting us into platforming us into their manufacturing processes and we see lots of phase II, phase iii and commercial wins. That's probably the most underappreciated piece is people don't quite see the depth and breadth of what we've created.
Perfect. With that, we are out of time.
Great.
T ony, thank you so much for joining us
Thanks Rachel.
Thank you for everyone joining us today.