On Tuesday, Repligen Corporation (NASDAQ:RGEN) purchased 908 Devices Inc.’s (NASDAQ:MASS) desktop portfolio of four devices for bioprocessing process analytical technology (PAT) applications.
The purchase consideration is a payment of $70 million in cash. 908 Devices remains focused on the growth of its newly expanded handheld device portfolio for health and safety applications.
Adding these desktop assets complements and strengthens Repligen’s differentiated PAT portfolio, providing its biopharmaceutical and CDMO customers with insights to optimize development processes and improve manufacturing efficiencies.
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Products acquired from 908 Devices include MAVERICK and MAVEN for real-time monitoring and control of critical bioprocess parameters; REBEL, an at-line cell culture media analyzer; and ZipChip, a high-resolution sample separation device used to characterize product quality attributes.
Concurrently, 908 Devices reported fourth-quarter sales of $18.82 million, up 31% year over year, beating the consensus of $16.4 million. The increase was driven by a 22% increase in handheld revenue and a 56% increase in desktop revenue.
The installed base grew 23% year-over-year to 3,504 devices, with 219 handheld devices and 32 desktop devices placed during the fourth quarter. In 2024, Desktop revenue increased 10% to $13.2 million.
Guidance: 908 Devices expects 2025 revenues of $53 million--$55 million, up 11%--15%, excluding $1 million in revenue in the first quarter before divestiture. The company expects further acceleration above 20% in 2026.
The company now expects to achieve Adjusted EBITDA positivity by Q4 2025 and cash flow positivity in 2026, driven by improved gross margins, which are projected to reach the mid-to-high 50% range in 2025, with further expansion anticipated in 2026 following manufacturing consolidation.
Additionally, the divestiture streamlines operations, reducing headcount by approximately 33% and eliminating $20 million in annual operating losses.
William Blair writes, “We largely view the company’s divestiture of its desktop portfolio as a positive from an operational standpoint…”
Analyst Matt Larew says Repligen was already establishing a leadership position with products like KrosFlo, and the 908 portfolio will strengthen that position.
As more companies adopt continuous bioprocessing and advanced technologies become more widely used, demand for real-time and in-line analytics tools is expected to grow faster than the overall market. This acquisition aligns with Repligen’s strategy of acquiring promising technologies early at a reasonable cost while maintaining strong profit margins. It should also ease recent concerns about the types of assets Repligen is pursuing.
The analyst maintains an Outperform rating for Repligen and 908 Devices.
Price Action: MASS stock is up 71.7% at $3.40 at the last check Tuesday.
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