| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27995.85 | 74 |
| Intrinsic value (DCF) | 11405.60 | -29 |
| Graham-Dodd Method | 20872.18 | 30 |
| Graham Formula | 407.03 | -97 |
Eurofins-Cerep SA (ALECR.PA) is a leading provider of drug discovery services to pharmaceutical and biotechnology companies globally. Headquartered in Vienne, France, the company specializes in high-throughput screening, in vitro safety profiling, lead optimization, ADME (Absorption, Distribution, Metabolism, Excretion) profiling, and in vivo pharmacokinetics (PK) studies. Formerly known as Cerep SA, the company rebranded in 2014 after becoming part of the Eurofins Scientific network, enhancing its capabilities in preclinical research. Operating in the Medical Diagnostics & Research sector, Eurofins-Cerep plays a critical role in accelerating drug development by offering assay design, compound management, and comprehensive in vitro and in vivo testing services. With a strong presence in Europe and beyond, the company serves as a key partner for biopharma firms seeking efficient, scalable solutions for early-stage drug discovery. Its integration within Eurofins Scientific provides access to a broader range of analytical testing services, reinforcing its competitive edge in the contract research organization (CRO) market.
Eurofins-Cerep SA presents a niche investment opportunity within the growing CRO sector, benefiting from increasing pharmaceutical R&D outsourcing. The company's strong profitability (net income of €7.15M in the latest period) and minimal debt (€328K) suggest a stable financial position. However, its small market cap (~€103.9M) and lack of dividend payouts may limit appeal to income-focused investors. The low beta (0.444) indicates lower volatility relative to the market, which could attract conservative investors. Key risks include dependence on the broader biopharma R&D spending cycle and potential margin pressures from larger CRO competitors. The company's integration within Eurofins Scientific provides synergies but may also limit standalone growth opportunities.
Eurofins-Cerep operates in the highly competitive preclinical CRO market, where differentiation comes from specialized service offerings and scientific expertise. Its competitive advantage lies in its focus on high-throughput screening and ADME profiling—critical early-stage services for drug discovery. Being part of Eurofins Scientific (ERF.PA) provides access to a global network of laboratories and cross-selling opportunities, though it remains a smaller player compared to full-service CRO giants. The company's asset-light model (evidenced by low capex) allows flexibility in scaling operations. However, its regional focus in Europe may limit growth compared to U.S.-centric competitors. The lack of clinical trial services (a key revenue driver for larger CROs) narrows its addressable market but allows deeper specialization in preclinical work. Pricing pressure from low-cost Asian CROs and the dominance of integrated players like LabCorp and IQVIA in the broader market pose challenges. Eurofins-Cerep's differentiation strategy relies on high-quality data, rapid turnaround times, and customized solutions for niche therapeutic areas.