We are seeing some really nice positive momentum at our top 10 CDMO accounts as you heard in my prepared remarks, but it’s not the long tail yet. I think the long tail of CDMOs has to recover, and that’s going to come with a healthier biotech environment, increased funding, et cetera, et cetera.
Operator: The next question comes from Paul Knight with KeyBanc.
Paul Knight: I guess I’ll give you a break, Tony. But the question is for Jason. With the EBITDA margins you’ve guided to here, I think, around 18% to 20%. What are you — what does Repligen aspire to as we think about 1 or 2 years beyond 2024? I mean, Repligen you’ve done 30% in 2022. What’s kind of the goal if I could express it like that?
Jason Garland: Yes. I think for sure, 25% really is where we’re looking to drive, but it’s kind of mid-20s in the next milestone. And then we’ll continue to see if there’s opportunity to get north of that. Again, in those — at the 30 points [indiscernible] COVID, volume profitability and margins are just — really aren’t what we see as a sustainable way to think about the mix of the business. But certainly, that mid-20s is absolutely where we’re going to get back to you.
Paul Knight: And Tony, the [indiscernible] Association thinks we might have 14 cell and approvals this year. Do you see that in customer orders? And what products do you make for this market as well?
Anthony Hunt: Maybe start — let’s start with the products in the marketplace. I would say that the drivers and new modalities for us are definitely our Filtration portfolio, products like ATF and our hollow fiber technology. Also, our systems are doing quite well, like our ARTeSYN systems and then OPUS comps. That would probably be the 3 main product lines. We are, obviously — almost every company likes to use our analytics technologies like SoloVPE. So that would probably be the fourth product that does quite well in cell and gene. In terms of 14 approvals, yes, look, if there’s more approvals this year, I think it’s going to benefit Repligen. I haven’t gone through the 14 to see which ones we have customer opportunities or were already spec-ed into the Phase II. But as I said, we have 20, 25 accounts that are scaling. So if those are part of the 14, then yes, we’ll benefit from that.
Operator: The next question comes from Rachel Vatnsdal with JPMorgan.
Rachel Vatnsdal: Perfect. A lot already been asked, and maybe I’ll just put one in around M&A. For Metenova, you’ve had that asset for a few months here. So can you talk about how integration is going there? And then any expectations for M&A and just talk about the state of the environment there for this year as well?
Anthony Hunt: Yes. Thanks, Rachel. Yes, Metenova, so far, it’s gone exactly as expected. Integration is going well. There’s a real synergy between what Metenova is doing and about the Fluid Management business that Repligen is doing. So we’ve integrated well. The sales forces are trained. We’re working very closely with their team. So expect — everything has been very positive so far. And then from future M&A, obviously, there’s nothing’s really changed. I mean, the portfolio of companies that are out there, that are available, hasn’t really changed that much over the last 12 months, and we’ll continue to be selective in terms of what we go after. And apologies for the background noise, someone’s decided to hammer on our roof.
Operator: Our next question comes from Justin Bowers with Deutsche Bank.
Justin Bowers: Just a 2-parter from me. Can you talk about some of the underlying assumptions for the return to double-digit growth into 2025 and sort of what you’re seeing that gives you the confidence in that trajectory? And then in terms of the site consolidations, at one point, would you — at what point would you have to start adding capacity as you return to your double-digit growth trajectory next year and beyond?
Anthony Hunt: Yes, maybe I’ll start with the site consolidation piece. I think we’re in great shape in terms of what we have for facilities, we’re doing a little bit of site consolidation. But in terms of capacity, we have capacity that’s going to get us out for the next 5 years. So I don’t think there’s a lot more investment than we have to do. Of course, if we did an M&A and it required a capital investment, then that probably would be the exception. In terms of kind of assumptions around getting back to double-digit growth in 2025, it’s really around broad market recovery, it’s kind of what I said earlier, broad market recovery. We are in a significant number of late-stage processes. So as those go into commercial, I think we get a nice pickup from going from Phase III into commercial.
And we’re seeing that, honestly, in 2024 for some of our product lines. So I think that’s a positive. And then, it’s the new products. Like we’ve been launching some great products over the last few years. We’re really proud of what we’ve done on the systems side. You’re going to see as we go through this year, a number of new products are going to come out on the Protein A ligand side as well. I think all of those contribute in a very positive way to the double-digit growth in 2025.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tony Hunt for any closing remarks.
Anthony Hunt: Yes. Thanks, Sabrina. Look, it’s great for everybody to join us today, obviously, right at the start of 2024. I look forward to getting back together with everybody in May and talking about the progress we’re making. So again, thanks, everybody, for joining.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Thank you.
