Is Repligen (RGEN) The Best Healthcare Stock to Buy Now?

We recently published Top 10 Stock Recommendations You Can’t Miss Amid Growing AI Bubble Fears. Repligen Corporation (NASDAQ:RGEN) is one of the top recommended stocks.

Dan Veru, Palisade Capital Management senior partner and CIO, recently talked about Repligen, a life sciences company involved in the development and production of materials used in the manufacture of biological drugs. Here is why the analyst likes the stock, which is up 10% over the past 12 months.

“You need a clearance event. You need something to happen to remove the uncertainties, and I think what’s happened in the last couple of days vis-à-vis drug pricing really was that clearance event. Repligen Corp (NASDAQ:RGEN) is no different than Danaher in many respects, which you and I have talked about as well. They are part of the whole ecosystem of how you make drugs and a very important component of that. The stock’s been plagued by simply uncertainty over the direction of drug pricing. Now, at least you have better clarity, and it’s more and more important as we get more that we’re going to need more drugs to come out, and they would play in that ecosystem of how new drugs are formed.”

Copyright: kadmy / 123RF Stock Photo

Prosper Stars & Stripes Fund stated the following regarding Repligen Corporation (NASDAQ:RGEN) in its Q1 2025 investor letter:

With the above factors in mind, the Composite strives to use periods of market dislocation to reinvest in some of the high-quality stocks that we monitor on our focus list for attractive entry points. One such stock is Repligen Corporation (NASDAQ:RGEN). The company is a global supplier of hardware and consumables to pharmaceutical, biotechnology, and contract drug manufacturing organizations (“CDMOs”). Repligen is a “picks & shovels” provider of essential tools to the life sciences industry; approximately 80% of the products it sells are consumables. The bioprocessing industry historically grows consistently between 8-12% per year. Repligen is seen as an innovator across key areas of the upstream and downstream value chain in drug development, and we believe approximately 80% of the company’s portfolio has little to no real competition. Since the consumables it sells typically represent less than 5% of the total cost to manufacture a biologic, Repligen enjoys strong pricing power. The life science tools (“LST”) industry experienced several headwinds over the past two years from post-COVID de-stocking and slowing sales in China. However, more recently, there have been green shoots as Repligen’s pharma and consumable orders have increased mid-to-high teens. In addition, there were near-record 64 new drug approvals in 2024. The post-COVID hangover appears to be coming to an end; we believe Repligen’s sales can accelerate to 15+% in 2025. We believe this growth would be accompanied by at least 100 basis points (“bps”) of margin expansion and strong free cash flow. Recent reports from peers including Danaher and Satorius support the view that trends are improving. Further, the desire to add domestic capacity for drug manufacturing is a medium to long term catalyst that will support growth rates. Repligen has high visibility and accelerating revenues and profits and we anticipate meaningful upside to ~$180 price based on a 10x EV/S multiple.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.