Meehan’s Biopharma Update: Strong Backdrop for Tools & the CDMOs

Earlier this week, Nephron’s Jack Meehan issued a comprehensive update on the biopharma end market. Overall, the leading indicators he tracks suggest there is a lot to be bullish about for end market growth – especially for large molecule investment.

There has been a lot of market consternation over the durability of COVID-19 tailwinds, which he thinks has distracted from the bigger picture that biopharma end market funding has been robust. He sees a strong pipeline of biologics coming through the funnel, and thinks Catalent’s performance through the pandemic has strengthened their position in the CDMO industry. On COVID-19, he is comfortable with the outlook given government demand for vaccines and contracts which extend through 2022.  He sees tactical opportunities following recent underperformance vs the broader market and biopharma services peers in the CRO industry.

In the report, Meehan updated thoughts for key players Catalent (CTLT), Avantor (AVTR), Danaher (DHR), and Thermo Fisher (TMO) as well.  On Friday, Meehan teams up with Nephron’s Eric Percher for a call with clients exploring their recent reports on biopharma end market growth and the outlook for specialty pharmacy growth 2021-2025, respectively.  For more information on their work, email