Jon aka Borlaug: A Deep Dive on Life Sciences and Bioprocessing

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Jan 27, 2025

Dive into the life sciences landscape with Jon aka Borlaug as he breaks down bioprocessing, CRO/CDMOs, and diagnostics. Discover why life science companies are rebounding post-COVID and why bioprocessing stands out as a robust business model. Explore the evolution from stainless steel bioreactors to cost-effective single-use systems and the impact of outsourcing in pharmaceutical manufacturing. Finally, get insights on exciting growth opportunities, particularly with innovative therapies and the intersection of AI in clinical processes.

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INSIGHT

Bioprocessing's Appeal

Jon prefers bioprocessing due to its secular drug production and hidden cyclicality within the broader space's cycle.
This sector offers predictable revenues tied to drug volumes, not prices, giving it pricing power.

INSIGHT

Bioprocessing Dynamics

Bioprocessing companies supply equipment for biologic drug production, with secular growth drivers.
Regulatory capture ensures lock-in, as drug developers must specify equipment early on, benefiting bioprocessing companies.

INSIGHT

COVID's Impact on Bioprocessing

COVID caused a surge in bioprocessing demand, but also led to over-ordering and a CapEx cycle.
A stocking event and capital equipment hangover prolonged the downturn, impacting recovery expectations.

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In this episode, co-hosts Elliot Turner and John Mihaljevic welcome Jon aka Borlaug for a deep dive on the life science space, covering the bioprocessors, CRO/CDMOs, and the diagnostics companies. Jon helps demystify this fascinating industry for generalists and offers sharp insights for specialists alike. We go in depth on why life science companies have suffered post-COVID and how better days await. Jon shares why bioprocessing is one of the best business models in the world. Stay until the end when he shares his favorite bioprocessing idea.

For more on the space, follow Jon on Twitter https://x.com/Borlaug_ and sign up for his substack https://borlaug.substack.com

Enjoy this conversation!

The primary purpose of this podcast is to educate and inform. The views, information, or opinions expressed by hosts or guests are their own. Neither this show, nor any of its content should be construed as investment advice or as a recommendation to buy or sell any particular security. Security specific information shared on this podcast should not be relied upon as a basis for your own investment decisions -- be sure to do your own research. The podcast hosts and participants may have a position in the securities mentioned, personally, through sub accounts and/or through separate funds and may change their holdings at any time.

About the Co-Hosts:

Elliot Turner is a co-founder and Managing Partner, CIO at RGA Investment Advisors, LLC. RGA Investment Advisors runs a long-term, low turnover, growth at a reasonable price investment strategy seeking out global opportunities. Elliot focuses on discovering and analyzing long-term, high quality investment opportunities and strategic portfolio management. Prior to joining RGA, Elliot managed portfolios at at AustinWeston Asset Management LLC, Chimera Securities and T3 Capital. Elliot holds the Chartered Financial Analyst (CFA) designation as well as a Juris Doctor from Brooklyn Law School.. He also holds a Bachelor of Arts degree from Emory University where he double majored in Political Science and Philosophy.

John Mihaljevic leads MOI Global and serves as managing editor of The Manual of Ideas. He managed a private partnership, Mihaljevic Partners LP, from 2005-2016. John is a winner of the Value Investors Club’s prize for best investment idea. He is a trained capital allocator, having studied under Yale University Chief Investment Officer David Swensen and served as Research Assistant to Nobel Laureate James Tobin. John holds a BA in Economics, summa cum laude, from Yale and is a CFA charterholder.