Seven of the top 10 best-selling drugs in the world are
antibodies, biosimilars are starting to disrupt the pharmaceutical
industry, and Big Pharma is investing billions in gene therapy. On top
of that, roughly half of the drugs in biopharma pipelines today are
biologics (antibodies, cell therapies, gene therapies, etc.). All of
that means an exceptionally attractive market opportunity for companies
like Repligen (RGEN) that sell what amounts to the picks and shovels of the biologics industry.
I
believe Repligen’s strong position in purification and filtration, as
well as emerging opportunities in areas like analytics, give the company
a good shot at a prolonged streak of 20%-plus revenue growth and 20%+
FCF margins. While the shares do trade at around 15 times forward
revenue, I’m not sure they’re as expensive as that snapshot approach to
valuation may suggest, particularly with the company gaining share in a
large market set to grow at a high-single digit rate for many years to
come.
Click this link to continue:
Repligen Gives Investors A Pure Play On Bioproduction
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