TimesSquare Capital Management, LLC on Repligen Corporation
Thesis
TimesSquare owns Repligen for its role as a supplier of essential reagents and precursors used to manufacture biological medicines, sometimes as the sole source. The announced purchase of BioLife Solutions expands its capabilities in cell therapy. Organic revenue reached the high end of guidance and management raised its full-year organic growth outlook. Large customer orders and management’s expectation of increasing customer investment over coming quarters reinforce the potential for renewed bioprocessing demand.
“At an industry conference in September, management pointed to an improving environment, recent wins of sizable customer orders”
Key risks
- Weaker bioprocessing results from a large peer had raised concerns about end-market demand.
- The expected recovery relies on biopharma customers increasing investment and order activity.