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- Repligen Inc (NASDAQ: 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.
| Feb 2022 | SVB Leerink | Maintains | Outperform | |
| Oct 2021 | SVB Leerink | Maintains | Outperform | |
| Oct 2021 | Exane BNP Paribas | Initiates Coverage On | Outperform |
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