This Analyst Is Bullish on Repligen's FlexBiosys Acquisition for Fluid Management Portfolio

Repligen Inc RGEN agreed to acquire FlexBiosys Inc to build its Fluid Management franchise and add a full range of single-use bioprocessing bags and assemblies.
The exact terms of the deal were not disclosed, but Repligen will acquire for cash and equity consideration.
William Blair writes that despite not closing any M&A deals in 2022, Repligen has a strong record of doing small tuck-ins to fill in gaps in the product portfolio, and FlexBiosys adds to recent fluid management deals.
Also Read: Despite Attractive End Markets, Analyst Outlines Concerns For Repligen Stock.
The analyst writes that management believes the custom nature of FlexBiosys’ bags is a point of differentiation in a market with several much larger competitors.
William Blair notes that FlexBiosys’ base business is expected to be roughly flat in 2023, given ongoing destocking headwinds, although management anticipates 25% growth in 2024 and onward.
The deal expands Repligen’s single-use fluid management offering, adds in-house manufacturing capabilities, and should enable more vertical integration and supply chain control to the broader portfolio.
The deal is expected to be accretive to adjusted EPS in 2024.
Price Action: RGEN shares closed higher by 5.46% at $179.70 on Wednesday.

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