Ronald L. Chez, a Private Investor, Files an Amended 13D for Repligen

CHICAGO, Aug. 15, 2011 /PRNewswire/ -- Ronald L. Chez, a private investor, files an amended 13D for Repligen and sent the following letter to the Board of Directors:

Dear Board of Directors: Attention Karen Dawes and Walter Herlihy

As you know, I have been a Repligen investor for many years.  I have respected and valued the leadership efforts of Walter Herlihy. However, failed efforts, the financial results of the Company and the Company's market performance have caused me to consult with other key investors in Repligen, as I indicated I would in my recent SEC filing.

As a result, I have discussed Repligen with the holders of a significant percentage of the Repligen outstanding stock.  We are, and have been, long-term shareholders, and, I believe, very patient. As investors, we have attempted on many occasions to constructively engage management with our views on the Company and the opportunities available to improve the value of the Company for all shareholders. Unfortunately, despite everyone's best intent, these efforts have not delivered the results that, we or you would have anticipated, and we have a right to expect. The reality is that Repligen stock is trading at approximately the same price as it was five years ago.  After my discussions with Repligen's larger shareholders, we have a few suggestions that we believe can and should be acted on promptly by the Board to help improve market perception of Repligen and enhance the Company's value for its shareholders.

First, the Board should immediately implement a policy that requires Repligen's directors and officers to be stockholders in the company.  This will, I believe, more closely align the interests of Repligen's officers and directors with its investors.   As investors, I and other shareholders expect Repligen's officers and directors to be invested with their own 'hard' money in Repligen stock, not just options. I call on the Board to enact Compensation and Governance standards for stock ownership for itself and the officers of the Company. These standards would be separate from the many grants of options to purchase stock at some future date that are currently held. As an aside, Walter Herlihy's actual ownership of stock is consistent with my minimum expectations.  There are many existing plans dealing with stock ownership for directors and officers that can serve as a guide to the implementation of a suitable plan for the Company.

Additionally, the Board should rescind the Rights Agreement dated March 3, 2003 (the so-called 'poison pill'). Whatever the market conditions and management concerns were in early 2003 that caused the Board, at that time, to approve a poison pill those issues are not relevant now. As every investor knows, the Rights Agreement creates the impression to the market of entrenching management and the Board of Directors. Whatever the good intentions might have been in 2003, the existence of the Rights Agreement makes the Company a materially less attractive investment in today's marketplace, especially to institutional investors. The other major investors I have spoken with agree conceptually with the aforesaid.

Finally, the Board should retain a qualified investment banker to assist in evaluating the actions that are most likely to enhance shareholder value. I have had discussions with qualified investment bankers that the Board may wish to consider; as we have spent time analyzing and discussing Repligen's opportunities. I believe there needs to be a careful analysis of risk and reward regarding the highest and best use of the Company's assets. For example, the bioprocessing assets may be more effectively monetized by another enterprise with a better sales infrastructure than that which currently exists at Repligen. The fact that the Company owns bioprocessing assets should not require the Company to build overhead and organization, unless the Board determines that the use of Repligen resources for that purpose is the best path to enhance shareholder value (which I would doubt). The same critical review should apply to realizing value for RG1068.  The investors I talked with and I agree, however, with Repligen's plan to seek partners for Spinal Muscular Atrophy (RG3039) and Freidreich's Ataxia (RG2833).

I wish to personally pursue a constructive discussion directly with the Board regarding the matters discussed in this letter, including various strategic alternatives that I believe are available to the Company. I am available to meet in person or by telephone as soon as possible.

Sincerely,

Ronald L. Chez

Office: 312-944-0987

SOURCE Ronald L. Chez, Inc.

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