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

Core Viewpoint - Repligen Corporation (NASDAQ:RGEN) is highlighted as a top stock recommendation amid concerns over the AI bubble, with a 10% increase in stock price over the past 12 months [1] Company Overview - Repligen is a life sciences company that develops and produces materials for biological drug manufacturing, serving as a critical component in the drug production ecosystem [2][3] - Approximately 80% of Repligen's products are consumables, positioning the company as a "picks & shovels" provider in the life sciences industry [3] Market Dynamics - The bioprocessing industry has historically grown at a rate of 8-12% per year, and Repligen is recognized as an innovator in both upstream and downstream drug development processes [3] - Recent trends indicate a recovery in the life science tools industry, with Repligen experiencing mid-to-high teens growth in pharma and consumable orders [3] Financial Performance and Projections - The company is expected to see sales growth accelerate to over 15% in 2025, alongside at least 100 basis points of margin expansion and strong free cash flow [3] - Repligen's pricing power is strong, as consumables represent less than 5% of the total cost to manufacture biologics [3] Industry Context - The recent clarity in drug pricing has alleviated uncertainties that previously affected Repligen's stock performance, aligning it with broader industry trends [2] - The desire to increase domestic drug manufacturing capacity is anticipated to be a medium to long-term growth catalyst for Repligen [3][4] Valuation - The stock is projected to have meaningful upside potential, with a target price of approximately $180 based on a 10x EV/S multiple [4]