BIO - Bio-Rad: A Lackluster Picks-And-Shovels Life Science Company With A Key Investment Kicker
2024-04-14 01:23:10 ET
Summary
- Bio-Rad is a "picks and shovels" company in the life sciences industry, but lacks standout growth, margins, or returns, and that has been largely true for more than two decades.
- Recent trends in the life sciences space have been challenging, driving, double-digit declines in Bio-Rad's Life Sciences segment, and neither biopharma nor academic/government budgets look great for 2024.
- Bio-Rad's holdings in Sartorius bring significant value to the company, but Sartorius shares have sold off considerably since the bioproduction bubble popped and investor enthusiasm has faded.
- There's an interesting some-of-the-parts story here, particularly if bioproduction growth resumes after a period of capacity digestion, but it's hard to love Bio-Rad on a standalone basis.
I have a long history with Bio-Rad ( BIO ) ( BIO.B ), having covered this life sciences company long ago in my sell-side days. It has always been an odd duck in the life sciences world and remains so, with the company better thought of as a “picks and shovels” company with broad exposure to biomedical research and clinical diagnostics, but not really a high-value area of expertise that allows it to stand out on growth, margins, or returns....
Bio-Rad: A Lackluster Picks-And-Shovels Life Science Company With A Key Investment Kicker