Conference Transcript - RGEN 2026-09-09

Speaker 1

Hi, everyone. Welcome to day two of the Wells Fargo Health Care Conference in the afternoon. We are excited to have Replogen here. We have CEO Olivier Loyo and CFO Jason Garland. Very excited to have both of you here. And so, you know, maybe the best place is to start. I think you guys have best organic growth, at least the companies that we cover, 13% in 2Q. Maybe just start there, kind of what's driving the strong growth for you guys, and maybe any kind of like puts and takes for the quarter.

Olivier Loeillot, CEO

Yeah, no, thanks for the question, Heaven. I mean, obviously very happy about how quarter two played out for us. You're right, we grew 13% organic. In fact, the real number was 14 because we lost a portion on tariff refund. So really a great quarter, which has enabled us to increase our guidance for the full year to 10.5 to 13.5, midpoint at 12% growth, which is exactly what we grew in the first half. I mean, our growth in H1 was exactly 12%. So we felt like this is setting us up for a good year of 2026. You mentioned about performance of our franchises. I mean, particularly great performance of both analytic and protein as well, which has helped us. I mean, I think protein grew more than 50, analytics more than 30. So this has helped us balancing quite a bit on the lower growth we've seen on filtration. Great performance on margin, and I'm sure you're going to have questions for Jason on that later on. So I'll pass on it. What was very encouraging for us also was to see a specific rebound of a couple of market segments that we're tracking, one being emerging biotech and the other one being new modalities. And as you all know, I mean, there have been a couple of tough years on new modalities. So to see a rebounding new modality market segment for us was really a great signal. And then finally, obviously, very happy with the progress we're making on our strategy and the acquisition, the pending acquisition of Biolife, obviously, is a big milestone for us. And we're very excited about what comes around the corner here.

Speaker 1

No, super helpful. Maybe going to that point, I mean, 12% is the midpoint of the guide. You have a couple of discrete headwinds this year. I mean, I kind of calculated to be about 400 basis points, which really gets you to about 16 underlying. I mean, is that a decent way to think about how this business is performing at a fundamental basis?

Olivier Loeillot, CEO

And then I know you're not going to talk about 27, but it is like, I mean, unless you have some of these one timers again, is that like where the industry is kind of at right now? um listen you're right i mean we we we have been piling two headwinds this year one that we we knew already a year ago which was the gene therapy program that has costed us about two points of growth in 2026 and then the other one which was totally unexpected that took place beginning of this year which we informed the world street about which is a couple of atf customer one having management of its inventories this year the other one having a delay of implementation of its manufacturing site so this has indeed added a bit of unexpected pressure to our 2026 numbers we are so glad that we're still managing to deliver the growth we do because it's a testimony indeed we have that very broad portfolio of products that we've been talking about constantly over the last several years so you're also right even i'm not talking about 27 today I mean, you know what we've been always saying. I mean, we are aiming to outpace market growth by five points. And we have such a diversified portfolio of products that if for whatever reason we get bad news on one side, we are trying and we are managing to compensate on the other side. So that's kind of the story for 27 at this stage.

Speaker 1

Gotcha. You know, and the news, and I feel like what a lot of people are trying to figure out is, you know, what all this mRNA news means for Repligen and bioprocessing companies. I know it's really challenging to, you know, kind of put numbers around it, but I mean, I think pre-biolife new modalities was 16% of sales. mRNA was kind of probably put in the low to mid-single-digit range. You know, just from a high level, is there anything about mRNA production that's particularly heavy in its use of either filtration or chromatography or kind of anything that you could, just mRNA in particular, and then really what parts of your portfolio are kind of geared towards that modality?

Olivier Loeillot, CEO

Yeah, no, mRNA is a modality we like from a lot of angle. I mean, and first of all, think about it. I mean, during COVID, billions of people around the world have been taking some mRNA vaccines. And this is what I like to call sometimes the largest clinical trial that has ever happened in the story of the world somehow, where indeed billions of people have been vaccinated. So to see that piece of news coming from the Moderna I&T project combined with Merck project is very, very, very exciting for the entire industry because for bioprocessing company, mRNA is presenting a lot of opportunities. I mean, if you look at products, as you ask, I mean, it can start with any type of raising that are being used in two steps. One for the first step, which is the DNA plasmid manufacturing, and the other one, which is for the final purification of the mRNA product. We launch, the first catalog product we launch is enabling customers to get rid of the biggest impurity you're getting in an mRNA process, which is a double-stranded RNA. So that's a resin piece. Then if you have resin, you have to pack resins. And very often those mRNA customers, they have to pack hundreds of columns because it's going into smaller type of population, batches and so on. So they don't want very often to pack these columns themselves. So they use column packing. So that's great for Opus. Then you add the filters. Then you add the fluid management because for as far as fluid management is concerned, the needs are very different than the needs you have on some other businesses like monochlorine antibody, which are mostly dealing with very large processors. The marine processors are much smaller and so on. And then finally, PAT technology. So, of course, there are a lot of opportunities for suppliers like ours across the board in terms of the portfolio here.

Speaker 1

That's great. Thank you so much. You know, another area that we get a lot of questions, BioLife acquisition, obviously biggest in the company's history. Seems attractive. I mean, high consumables mix, dominant market share. Why did you think that this was the right asset? And particularly, I guess, the questions that we get is, like, why cell therapy? And I know you've touched on it, but just to, if you can provide anything there, that'd be great.

Olivier Loeillot, CEO

Yeah, no, sure. I mean, first of all, we did a lot of homework, Evan. I can tell you we spent, like, six, seven months in total to really make sure we were making the right decision here. doing multiple market studies about cell therapy in general, understanding what the trends were, trying to overcome potential risks like the potential emergence of in vivo therapies and so on. So we did that homework first, and then we realized, well, first of all, it's a huge new modality for our customers, 25% of one product out of four in the overall funnel pipeline of pharmaceutical, biopharmaceutical drug today is a cell therapy drug. And then you add today, it's mostly CAR-T that are commercial. You start to see the emergence of allogenic drugs and later on iPSCs as well. We realize this is a very fast-growing market for the next decade for sure. And then secondly, looking at that specific asset, I mean, Biolife has done an amazing job to really differentiate itself. And as you know, we like to say 80% of our portfolio is differentiated. Their portfolio is very differentiated as well. So the fit is also very good here. I mean, on biopreservation media, they are already designing 18 commercial drugs. They are designing in more than 80%, 8-0% of any phase 2 and phase 3 drug as well. So we know, like, there is a lot of tailwinds that's going to come in the next few years from the next FDA approval across the board here. And then finally, I mean, two things. First of all, there's a little joke. I mean, we're going to hit the $1 billion US dollar number next year, which for a company like Repigen, it's a big milestone for us. I mean, we've been growing very nicely, as you all know. I don't think there are a lot of people who would have bet that Repigen would be a billion US dollar by 2027, several years ago or so. And that's a big milestone for us. And one of the reasons why is because we've got that very diversified portfolio of product, but also very diversified and market approach. I mean, we talked a lot about mRNA, we talked a lot about gene therapy in the past. We had a very small play in cell therapy. Now with this acquisition, we are going to balance our play into new modalities much more evenly between cell therapy, mRNA, and gene therapy as well. So across the board, really exciting for us, and as we mentioned, it's a creative across I mean, I tell you, I've looked at a lot of acquisition in my career, I've never seen an acquisition target that was accretive to top line growth, gross margin, and EBITDA margin as well. So we like it. And at the end of the day, pretty simple integration and a pretty low-hanging fruit as well for generating synergies here.

Jason Garland, CFO

Yeah, and when you look at those synergies, you know, we feel like they're pretty straightforward, right? So we called out about $20 million in year one, you know, most of that, 15 of that is in the OPEC side, very much tied to public company costs, leadership costs, right? You know, CEO. He's being paid pretty well.

Olivier Loeillot, CEO

Yeah.

Jason Garland, CFO

So fortunately, he'll want to find, you know, a retirement home here next. And then that leaves us with, again, a lot of straightforward synergies. On top of the leadership side, there's the redundant public company costs that come with that, board expenses, et cetera. And then the rest is on the cost of goods sold side, which really has to do primarily to start with helping them to work through some of the yield and bag issues that they've shared with. Luckily, we are a supplier of single-use bags, and so we were able to find a path with them to create benefit with that. So we feel like we've been pretty conservative with the overall modeling, both in the synergies and, you know, we didn't bake any top line synergies in, but we do expect there to be, you know, both, both in both directions, right? They, you know, they're, they're specced into several commercial drugs. We are not, right?

Speaker 1

So we'll be able to tap into the relationships they have, sell that broader portfolio that Olivier just talked about and and be able to continue to drive some good benefits so we we love the deal overall financials are great yeah I mean just something you said that just kind of struck me so the synergies going both ways revenue so if they're in a commercial drug how easy is that for them to switch to to Repligen if you're not in there already if it's commercial I think what Jason wanted to say is indeed they are designing in 18 commercial self-therapy drugs.

Olivier Loeillot, CEO

I don't think we are designing in any of these 18 with the Repligen portfolio. So what I think Jason was alluding to is that's going to open us doors for the Repligen portfolio and maybe not for those commercial drugs specifically, but more broadly for the pipeline where we might not have had those high-level contacts at those accounts that we will have now because we are supplying them a very important product for those drugs, yes.

Speaker 1

Maybe another one for Jason on margins. Like you said, really great quarter. I think up 380 basis points. You have this goal of 30% EBITDA margins by 2030. My math is kind of like over 200 basis points a year. It's a lot. So how should we think about kind of the trajectory of that? And I think all this was kind of contemplated before Polymem and BioLife. And so how should we think about that goal in light of those changes?

Jason Garland, CFO

Yeah, so you're right. It's a big step in each year. You know, we announced earlier this year a transformation office that we've been executing. So that's a way to help accelerate that. So we actually feel like some of the growth will come over the next couple of years versus all being back-ended and loaded. You know, so we do see that benefit. PolyMem was contemplated within the transformation office. But to your point, certainly the BioLife acquisition was not. At this point in time, before we close and, you know, and build out a consolidated set of financials that we'll share, we really think of that as helping to accelerate that path to the 30%. But we'll pull all that together and kind of reprofile how we see it playing out. But I think the other thing for us is that as we continue to execute that margin expansion, it also gives us more room and flexibility to reinvest, right, making sure that whether it's in, you know, more R&D spend or technology, whether we want to double down more in some commercial and sales resources, you know, to really help bolster our top line growth, that we're going to have some of that flexibility. So we're really happy with the trajectory we've had, the discipline that the team's built, and we'll be able to leverage that more broadly.

Speaker 1

Great. Very exciting. Maybe on AI, I know this is an important topic for you guys, transformation office, working on that, putting that internally. I guess I'm more interested in maybe your, in terms of your products and how that is going to be aimed or is aimed at helping your customers, you know, implement AI and do things faster, increase throughput. I think, you know, your Pat portfolio technologies and integrating that with your system seems like an obvious place. You had the NovaSign deal, next-gen TFF you've talked about. But just how important, can you talk about this and then explain how important that is, integrating AI in your portfolio in order to kind of differentiate your offering?

Olivier Loeillot, CEO

Yeah, and I think you phrased it well already in your question, Evan. I mean, it's a three-step journey, really. It starts with PAT. It's going to be emphasized by Digital Twin. and then finally it's going to conclude to AI and so we're trying to be a bit more specific here in order to use AI you need data whatever business you look at I mean you can't use AI if you don't have data the only way we can help our customers to start with is to enable them to collect that data and the data they're going to collect from two fronts one is going to be on the process development side and the other one is going to be on the manufacturing side and the only way to collect data right now is via PAT technologies I mean and And I'll give you a number that's going to probably strike you and people here. Last year, we said probably 20%, 25% of the system we were selling were coming alongside our PAT technologies. In the last three months, it went up to 80%. And it's only three months. But, I mean, for us, it's extremely encouraging because it means, like, those people who have started to embed those PAT technologies have used them and liked them. And now they say, well, I'm just not going to buy a system now without having the PAT technology alongside. So that's really the first step. And we've got six PAT technologies. Only one is in line right now. We are going to work to make sure we get a second and if not a third one in line over the next couple of years. Then this is where Digital Twin comes, which is what is Digital Twin? Digital Twin is a software that enables you to kind of try to understand what the data you're collecting means. So are you going to be better at developing a process using that tracing? Are you going to be better at running the process under these type of parameters and so on? By using these digital twin capabilities, it's giving you a first hint. And then later on, once you're going to be having a lot of data point with your PET technologies, once you're going to have used digital twin to become faster at developing your processes and so on, then you're going to start to use those very broad AI engine that will enable you to just look at the data you collected over the last 100, 200 batches you've manufactured and being able to tell you after one hour, that's going to be a good batch, that's going to be a bad batch. And then you can stop it after one hour instead of waiting for two weeks. So can you imagine if you are a CDMO, it's a big game changer? Because, I mean, for CDMO, it's all about the time you use to sell, to manufacture and sell products. You don't want to run a batch that's going to be a bad batch. So it's going to be a multi-year journey. What's going to be really important is today we sell the P&T technologies. We are going to try to sell the digital twin technology as well. And then later on, partnering with the right AI company and so on, is hopefully starting to be able to also sell the AI software to become like an extension of our customers in a way.

Speaker 1

Maybe moving to proteins. I mean, 50% growth there. Don't think we expect that to be the same going forward. But, you know, can you just talk about what you're seeing in that business? And, you know, as we think about the long-term growth opportunities there, I mean, how should we be thinking about things?

Olivier Loeillot, CEO

Yeah, no, I mean, I love all of my franchises. If there is one, I'm really proud about that, the one, because I literally, I mean, Jason and I exactly joined three years ago. And I mean, I tell you, when we came, maybe literally a few months after, we heard about our two key customers on the Protein A side who had decided to just stop buying from us completely. So it was like the most horrific scenario you could think about. And we just felt like, hey, what are we going to do? I mean, we have to just reinvent ourselves and reinvent ourselves from every angle. Meaning on the one side, doubling down on the collaboration we had with the last OEM partner we had, which is Pure Light. And then on the other side, making sure we start to have our destiny in our hands by having an engine, a real innovation engine for both ligand and resin as well. With the acquisition of Tanti, and I mean, I have to say it has worked beyond our expectation. I mean, it's just happening across the board. I mean, the collaboration with Pure Light has been great. I mean, seeing in the Ecolab quarter to results, even though Ecolab is a big company, they did mention that they are getting market share. They are getting market share on the resin side. And then on our own resin side, I mean, we are multiplying the wins across the board for both very innovative products in the new modality, but also more interestingly in some of the older franchises where people have realized there is a shop called Repigen that's capable to develop a ligand and resin for them in less than six months, which is a fraction of the time it takes to the other guys. So we've won a lot of those R&D product development deal over the last one to two years. And this starts to generate significant sales. And the best is still to come. It's probably going to still be lumpy. So back to your question about are you going to be able to have a 50% growth every quarter? The answer is no. Is the objective to grow very fast on the protein side over the next five to ten years? Absolutely. And we get so many bets across the board. So, like, I think it's going to be a fantastic story for us in the midterm here, for sure.

Speaker 1

Moving to capital equipment, things are still kind of weak there, but it sounds like there's some sign of life in the quarter. Orders are up, booked a bill above one. You've talked about a bunch of things. I mean, getting a seat at the table, you have two RFPs with maybe another one coming, onshoring. And then just fundamentally, you've talked about kind of an underinvestment on the part of the industry, probably since COVID. So where do you think we are in this? Well, obviously, we're in the bottom of the capital equipment cycle. But what does this recovery look like? Because it seems like there are a lot of different industry-specific things, but also company-specific things that have changed probably since the last cycle.

Olivier Loeillot, CEO

Hey, Evan, let's start with the good news. I mean, we won one RFP in Q1, one in Q2. We already won two in Q3. So where it's still not as fast and as big as I would have thought it would be when we enter into 2026, at least we do have a seat at the table. And not only do we have a seat at the table, we are winning some of these RFPs, which for us is obviously a great sign because we never even had a chance to win those in the past. I mean, the flip side of it is it's not happening probably as fast as all of us would have liked to see it happening. And I know I've been talking about the tap opening sooner or later very strongly. I think it's probably 5% open right now. And so even with only 5%, we start to have some good win, I mean, which are going to be mostly delivered in 27. We're starting to build a nice backlog for 27 of those hardware deals we're winning. I think the best is still to come. I mean, I think we've not seen like probably more than 5%, 10% of what's going to come over the next few years because it's going to be a combination of some of these on-sharing big projects becoming more and more in terms of number, but also the urgent need now for our CDMOs and pharma customers to really go back to the hardware upgrade cycle that they've been ignoring mostly for the last three years. And technologies are improving. I mean, back to the story on PAT. I mean, people who have been testing our PAT technologies now for the last two to three years, they probably realized, hey, you know what? Not only we need to upgrade the equipment because there is better equipment today, But on top of it, that's going to enable us now to pair it with the PET technologies that are available. So the good news is we're still at the beginning of the cycle here for sure.

Speaker 1

Right. Process analytics, another strong quarter, 30% growth. Maybe kind of digging in there, where are you seeing the most strength? Is it broad-based or are there particular products that you're seeing the most demand? I mean, you've talked about the solo VPE plus upgrade cycle. How much is that contributing? And are there other areas within the portfolio where you see opportunities for upgrade cycles?

Olivier Loeillot, CEO

I mean, it's a combination of multiple factors. I mean, you don't grow more than 20% in 25 and midpoint, I think, of our gallons, 25% in 2026 without having multiple reasons for that. I mean, the market itself is becoming better and better, and I think we've seen some of the big analytical company instruments talking about it recently quite a bit as well. So they're seeing it as well. I think, and that's a good sign, by the way, for the bigger capex spending, because at least to my own experience, very often you start to see the beginning of a new cycle with a smaller scale type of equipment, which are easier. I mean, your procurement, your finance right hand is going to release funding for small scale hardware faster than for larger scale. So that's another good sign. But it all starts with the market getting better. And then, obviously, you mentioned the upgrade cycle. I mean, one of the things we're getting more and more focused on is lifecycle management of our product. We never really launched new version of our product in the past. I mean, there was not a new version of the solo for the last 10, 12 years. So people were just delighted to see something that's much faster, much more accurate than what we had before. We are still at the beginning of the cycle of the upgrade. We have a pretty strong target in terms of what we expect the upgrade and cycle to be at. And we're going to start working on the next generation of solo, probably in the upcoming few quarters as well, so that we keep on having that lifecycle management. The last piece I would mention is we've done a great job for the analytical franchise as well to push both consumables and service sales because those recurrent sales are great, obviously. And it's not that we had a great attachment on both sides before, and slowly but surely we are focusing on that more and more. I have one last, which is 908 acquisition, which is like 15, 16 months ago now. I mean, it's fair to say the integration has taken us more time and energy than we thought initially. The great news is now everything is in full order, meaning in terms of quality, in terms of regulation and so on, that we can finally start to push for that product portfolio, and that should be a really nice tailwind for us in 27 and beyond.

Speaker 1

Yeah, they had some good technologies, so it's nice to see it end up in your hands. You know, filtration, high single-digit growth last year, mid-single-digit growth this year. You know, there's significant headwinds there, though, from Sarepta, ATF. How do we think about this business, you know, in the long term? I mean, I think, you know, historically I've kind of thought of it as like a low-digit double-digit grower, but how do we kind of get back there?

Olivier Loeillot, CEO

You know, I mean, again, when we entered into 26, I had no clue, like, this would be the least performing franchise of all. I mean, I can guarantee you. I mean, life has taught me that in my 30 years of experience. I mean, you do budget and then you deliver the year because you have to, but you never deliver it the way you think you're going to deliver it. So, and then, yeah, we just pile all of the headwind we had in the business, all came in filtration this year, Even including one which is an inorganic play when we decided to sell Polymem, which cost us a point something of growth as well. But anyway, the good news is we start to see nice rebounds on ETF in the last couple of months. But also we're tracking how many new program customer are we winning. I mean, after four months and a half in 26, we had won as many new customer slash program as we had in the first six months of 2025. So it means like we are still getting more and more customers willing to use and starting to use ATF. One of the interesting trends we've seen lately is more people using it for smaller scale type of product, which at the first glance was like, oh, wow, that's surprising and maybe we're going to get less consumable. But it also means like people really love the technology because where I thought it's probably going to be mostly focusing on products that are requiring a few hundreds of kilograms of maps every year, or maybe a metric ton. I mean, now we start to see people using it for processes that only require maybe 100 kilograms of map per year. So it shows you like people are really becoming much broader on it and so on. So that's something we were hoping to see the benefit of very soon. And I mean, it's fair to assume like where this year the three other franchises have been the one growing faster and so on. I mean, there is a good chance next year we're going to see a different setup between the four franchises. We're still very bullish on ATF. And then the other big part of the filtration franchise is our downstream system, which also have been impacted by the lack of decision-making on the capex pending side. So if Reza tap opens, there is all reasons to be optimistic about next year for filtration.

Speaker 1

Maybe just rounding it out, going to chromatography. I mean, it's been two straight very strong years. I've always thought about the differentiation there being just the breadth of the portfolio, small scale to large scale. Maybe there's more to it than that. Is there something else that we should be thinking about there?

Olivier Loeillot, CEO

Why has it been so strong? and then again I mean after two strong years I mean how should we think about the underlying growth opportunity there no I think and I know I said that a few times already people are realizing like packing a column is not a core activity for a pharma company I mean why why would you need to have and I mentioned for a marine in particular which is a perfect example why would you need to have very big team of people to pack columns where you're not sure exactly about the amount of column you're going to have to pack month one month three month 12 or whatever that's partly the case for cdmos because cdmos do that they really don't know exactly what products they are going to manufacture a quarter by quarter they want to have their pre-packed column on the shelf to be able to react very fast but on the pharma side which is where we had most of our wins over the last a couple of years they've realized they've lost the expertise as well because i mean when i started my carry i mean very often people were starting that carry packing columns and then they would do that their entire life and now I can promise you the new generation and so on I mean they're going to do column packing for for a year two years and so on then they want to do something else and recolumn packing is a real art you need experience knowledge and those from a company realize they have a lot of losses of product because people are losing expertise and that's going to benefit us grandly for the next several years and and the good news is it's only a fraction of the total column Unpacking market that is being using prepack column today.

Speaker 1

So there is still a lot of traction here for sure China Sorry, China APAC 40% in 2q. I think China was up 60% in the first half I mean is this mostly China CDMOs in South Korea?

Olivier Loeillot, CEO

Where are you seeing you know within your portfolio? the most demand and then also you sign this OEM relationship recently in the area in the region you know how does this what does this let you do that you really couldn't do before hey listen I'll be humble for once I mean we're starting from a really low point I mean if there is one business that has not been doing well at all for the company for the last five years or so it's really our business in China and then I've said it very openly I think we've lost market share to a lot of local company over the last five years so we are working on two sides right now one is to reclaim some of this market share we've lost and this is why we signed that oem deal we're starting to see a really good traction on that where we're starting to to reclaim some of our lost market share but more importantly because i'm totally convinced the china market is going to be the fastest growing biopharmaceutical market over the next decade we are starting to win in areas where we didn't have a play earlier. I mean, back to resin. I mean, interestingly enough, we get a lot of design in win with some of the resin we put on our shelf in the last two to three years for companies that are very heavy on the new modality side. So it's a mix of reclaiming market share loss and then getting market share on some of the products we didn't have on the portfolio before.

Speaker 1

Okay. And the OEM relationship?

Olivier Loeillot, CEO

Yes. No, it's progressing very well. I mean, we're on the flight to China, Jason and I, on Friday night to visit our OEM partner and discuss the next steps together. We're going to start with them manufacturing some of our filters to start with. And we've got multiple other projects that we're going to talk about together. Cool.

Speaker 1

Probably have time for one more question. Got a couple here. One, so I actually found, I think if we went back, you know, four or five months, maybe six months ago, people thought that ATF was doomed. Competitor was coming out with a new product. And now we just don't really hear about it. But it's funny. I mean, I got this from using AI when I was preparing for this. But I go and look at Danaher's product, and I see their press release, and I see your name. so you actually you know know the product very well I think it instead of ATF it uses TFF is that correct so in terms of the different technologies and I assume they're using a very similar technology with some upgrades like what is the difference between using TFF for versus ATF you know I mean and we've said that's also very openly I mean the only real competitor we have to ATF right now is TFF.

Olivier Loeillot, CEO

So when I joined three years ago, I realized we have both. So I said, why are we like maybe working a little bit too much in silos where we are so obsessed by ATF that if TFF openly comes, we don't even consider it. And we're trying to convince people to do ATF, ATF. So first of all, when I joined, there were three pharma companies that were still not using ATF. Now we are down to only one. I mean, it means two of the three that were like TFF, TFF, they've moved also to ATF in the meantime and then anytime and it's not very often the case but anytime there is a company that really consider using a TFF instead of ATF we are bidding and not only we are bidding we are winning I mean so I don't think we've missed a single process intensification deal over the last two years three years I've been here and 90% of the case 95 is ATF and then the 5-10% TFF we're winning it with our own equipment as well and so from that point of view and again I don't want to feel complacent because I tell you I'm totally worried about what might happen every day and and then pushing my team to make sure we're monitoring what's happening today we've got the luxury that we don't have any competition at all I mean it's gonna come one day for sure and we're gonna get ready we are very heavy on R&D as you know and we're already working on the next generation ATF system that we hope to launch probably in about 15 to 18 months from now so great no time left perfect timing Thank you so much for joining us.

Speaker 1

That was a great conversation. Thank you very much.