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Medpace: Underestimated Profiter Of The Biopharma Trend

Dec. 01, 2021 7:27 AM ETMedpace Holdings, Inc. (MEDP)7 Comments
Philipp Stuelcken profile picture
Philipp Stuelcken


  • Medpace supports the biopharmaceutical industry with state of the art research methods to accelerate the approval of drugs.
  • The CRO market is highly competitive, but the CEO specializes in a niche that allows almost predictable sales for the upcoming years.
  • The company is profitable with EBIT margins around 18% and continues to post strong organic growth rates over 20%.
  • Valuation remains reasonable despite recent capital gains due to growth perspectives and profitability.

Wissenschaftler mit Ausrüstung Besitz Werkzeuge während wissenschaftliches Experiment Wissenschaft Konzept

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Investment Thesis

An investment in a biopharmaceutical company can be promising because of high growth rates, outstanding profitability and great returns in case of success. On the other hand, there are also significant risks. Many small companies in this

This article was written by

Philipp Stuelcken profile picture
Full-time Investor since 2015. I analyze companies with long-term prospects, primarily from a fundamental perspective. I primarily invest in fast growing companies of healthcare and technology sectors but also take some deep value plays. In the long term I aim for a return of at least 10% p.a. with my portfolio. Fan of Peter Lynch and his unique way of looking at the stock markets.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MEDP, BMY, VRTX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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