Similar to selling picks and shovels in the California gold rush, companies that make the tools and equipment for drug development can be great investments. Repligen (NASDAQ: RGEN) is a prime example. The company makes filtration, fluid management, and other bioprocessing tools that facilitate the manufacture of biologic drugs. It’s set to report the fourth straight year of revenue growth over 30%, with the stock gaining more than 500% over that span.
Even after those gains, there is at least one reason investors may still want to add shares to their portfolios.