Repligen’s Strategic Acquisition of 908 Devices’ Bioprocessing Assets Boosts Buy Rating

William Blair analyst Matt Larew has maintained their bullish stance on RGEN stock, giving a Buy rating today.

Matt Larew has given his Buy rating due to a combination of factors surrounding Repligen’s recent strategic acquisition of 908 Devices’ bioprocessing assets. This acquisition enhances Repligen’s leadership position in process analytical technology, a critical area for the bioprocessing industry, which is seeing increased demand for real-time analytics tools as continuous bioprocessing and advanced modalities gain traction. The acquisition aligns well with Repligen’s strategy of acquiring promising technologies early in their adoption curve, providing a strong starting point for gross margin improvement and fitting into long-term margin targets.
Additionally, the acquisition was made at a favorable transaction multiple, slightly below the historical average for similar assets, suggesting a good value purchase. The deal is expected to be accretive to Repligen’s gross margins and contribute significantly to future revenues. With the transaction fully funded by cash on hand, Repligen maintains a robust cash position, allowing for further strategic acquisitions. The company’s shares are trading at a multiple consistent with its historical average, reinforcing the positive outlook and supporting the Buy rating.

Larew covers the Healthcare sector, focusing on stocks such as Amedisys, Repligen, and Option Care Health. According to TipRanks, Larew has an average return of -9.4% and a 40.00% success rate on recommended stocks.