Portfolio Manager Insights

Bioprocessing stocks set for a rebound?

Demand for bioprocessing equipment is on the rise as biotechnology companies tighten their focus on complex drugs and cell and gene therapies, says Fidelity’s Eddie Yoon.

By: Eddie Yoon
Updated: 3/9/2026
  • After a challenging few years for the segment, Fidelity Portfolio Manager Eddie Yoon has started seeing business improvement among the makers of bioprocessing equipment such as bioreactors, fluid bags and cell-culture media, with demand for these “picks and shovels” of drug development driven by biotechnology companies’ aggressive pursuit of complex drugs, such as monoclonal antibodies, and cell and gene therapies.
  • “I interpret the recent increases in orders as a ‘green shoot’ for bioprocessing tools, providing an early sign that business conditions are improving and supporting my optimism about the category’s potential,” says Yoon, who manages Fidelity® Select Medical Technology and Devices Portfolio. 
  • In helming the industry-focused equity strategy since 2007, Yoon invests in secular-growth areas across the broad health care sector, with a particular focus on med tech and devices, favoring companies he believes have strong management teams that prioritize return on invested capital.
  • The upturn for bioprocessing is a welcome reversal after a COVID-related boom gave way to a post-pandemic bust, according to Yoon, who says his bullish outlook seems to be supported by an uptick in capital expenditures by biotechs, as well as nearshoring.
  • “The stocks of bioprocessing firms fundamentally appeal to me given their relatively stable business models and the multiple long-term tailwinds,” Yoon explains. This includes the need for these tools to develop increasingly complex treatments and the heavy regulation of the industry, which can be a barrier to entry for new competitors, he notes.
  • He also sees a tailwind for bioprocessing in the Most-Favored-Nation principle, specifically the current administration’s aim to tie the cost of prescription drugs in the U.S. to their lowest price in other developed countries.
  • Seeking to capitalize, Yoon recently increased the fund’s exposure to the life sciences & tools subindustry, which includes positions in several bioprocessing firms.
  • He’s notably positive on Danaher, Thermo Fisher Scientific and Repligen, all of which were among the fund’s top holdings as of January 31, 2026, representing about 25% of assets.
 
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