Why Repligen Corporation Shares Jumped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Repligen (NASDAQ: RGEN  ) , a life sciences company that develops consumable products used in the process of manufacturing biological drugs, jumped as much as 12% after announcing an asset purchase agreement with BioMarin Pharmaceutical  (NASDAQ: BMRN  ) for its histone deacetylase inhibitor (HDACi) portfolio.

So what: According to Repligen's press release, it will out-license its HDACi portfolio for an up-front payment of $2 million with the potential to earn up to $160 million in future milestone payments related to the development, approval, and sale of compounds in this product portfolio. Specifically, Repligen's HDACi portfolio offers promise in treating Friedreich's ataxia, a rare genetic condition that affects the central nervous system, as well as other neurological disorders.

Now what: The deal looks like a win-win for both companies involved, with BioMarin looking to continue its domination of the rare disease arena and Repligen looking to unload non-core focused businesses, such as its HDACi program, so it can instead focus on expanding its bioprocessing business. With Repligen already profitable, it has very little to lose in its agreement with BioMarin, so shareholders certainly have a reason to be excited in my view.

Repligen may be jumping today, but it could have a hard time keeping pace with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 19, 2014, at 5:41 AM, gs1217 wrote:

    A profitable company will usually go up. This company has a strong record of increased value for investors, and has a tangible manufactured product.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2805032, ~/Articles/ArticleHandler.aspx, 8/28/2015 4:10:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:00 PM
RGEN $34.38 Up +0.59 +1.75%
Repligen Corp CAPS Rating: ****
BMRN $130.89 Up +2.79 +2.18%
BioMarin Pharmaceu… CAPS Rating: ****