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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