This stock came to my attention recently. Decided to toe-dip a 3% allocation.
My core SaaS stocks stay the same of TTD, ESTC, AYX, MDB, and ZS, and I am trading around them a bit.
Been hard to find new blood, and particularly smaller companies of, ideally, $5b or less.
I was also trying to find growth in a sector that won’t perfectly match the ups/downs of the core SaaS stocks I own, which tend to be software for security, data analytics, and bus productivity.
Repligen (NASDAQ: RGEN) makes bioprocessing equipment used in manufacturing complex biologics. It has a particular focus on filtration and chromatography products.
RGEN just had ER:
Second Quarter 2019 Highlights
Revenue increased by 48% year-over-year, and 46% organically, to a record $70.7 million
GAAP income from operations increased 670 bps to 15.6% of revenue
Adjusted (non-GAAP) income from operations increased 1,220 bps to 28.4% of revenue
GAAP fully-diluted EPS increased to $0.17 compared to $0.06 for the second quarter of 2018
Adjusted (non-GAAP) fully-diluted EPS increased to $0.31 compared to $0.14 for the second quarter of 2018
ISCAL YEAR 2019 GUIDANCE:
Total revenue is projected to be in the range of $264-$268 million, an increase from our previous guidance of $235-$241 million. Our current guidance reflects overall revenue growth of 36%-38%, and organic revenue growth of 29%-31%.
(Dreamer comment: assuming some beat-n-raise from here, if they finish around 270-275m, that would be about 40% growth y/y)
Here is recent TMF article about their recent performance:
my key takeaway was that growth in gene-editing space may be key for their growth prospects
“Gene therapy contributes meaningfully to growth. The company estimates that its contribution from gene and cell therapies has doubled since 2017, but it still amounts to a relatively small total. But the company is betting on gene therapy to offer new opportunities for product development that can lower production costs and speed times.”
It has been down slightly since ER, but I think it is more just profit-taking from the recent run-up, likely due to company getting more attention thrown their way. I think I will keep it for a while. I like the gene-editing space, but not a fan of miracle drug stocks with mkt caps reliant exclusively on drug approvals, etc… I enjoyed a nice run with ILMN a couple years back, so been looking for something in biotech to get back into.