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3 Reasons to own $SRTOY
Twelfth day of my "3 reasons to own" series, today with a fast-growing German/French biotech supplier, Sartorius Stedim. Sartorius Stedim is a subsidiary of the German Sartorius AG and does the BioProcessSolutions business (accounting for 80% of revenue for the mother).

1st reason: Sartorius is a successful serial acquirer the have set the following strict M&A Criteria
  • Complementary products or technologies
  • Either among the Top 3 or USP
  • Management capacity and cultural fit
  • Fair valuation, reach Groups profitability level in 2-3 years

2nd reason: Being a supplier for a fast-growing industry with a lot of risk makes Sartorius an attractive investment for me. Biotech is a fascinating industry, but I'd never invest in an individual pharma/biotech company. I just see the risk/reward in spending bilions of dollars on research and go through the 5+ year process of getting through all 3 phases of drug approval too risky. Sartorius is a leader in a lot of these processes and profits regarless who wins. Similar too my other investments $VEEV and $DHR.
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3rd reason: Most of Sartorius revenue are single use products, which serve as a subscription model. Recurring revenue is always preferable, making revenues a lot more predictable.
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Unlike the name would suggest, single-use products are actually also better for the environment in many ways.
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I hope you enjoyed this post about a not too well known company.

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