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Drug Development Inputs & Services Stocks Q2 Recap: Benchmarking Medpace (NASDAQ:MEDP)

By Petr Huřťák | October 05, 2025, 11:32 PM

MEDP Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at drug development inputs & services stocks, starting with Medpace (NASDAQ:MEDP).

Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity.

The 8 drug development inputs & services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%.

Luckily, drug development inputs & services stocks have performed well with share prices up 23.1% on average since the latest earnings results.

Medpace (NASDAQ:MEDP)

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Medpace reported revenues of $603.3 million, up 14.2% year on year. This print exceeded analysts’ expectations by 11.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ organic revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Medpace Total Revenue

Medpace achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 72.5% since reporting and currently trades at $533.

We think Medpace is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q2: West Pharmaceutical Services (NYSE:WST)

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

West Pharmaceutical Services reported revenues of $766.5 million, up 9.2% year on year, outperforming analysts’ expectations by 5.6%. The business had a stunning quarter with a solid beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance exceeding analysts’ expectations.

West Pharmaceutical Services Total Revenue

The market seems happy with the results as the stock is up 19.9% since reporting. It currently trades at $272.56.

Is now the time to buy West Pharmaceutical Services? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Azenta (NASDAQ:AZTA)

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Azenta reported revenues of $143.9 million, flat year on year, falling short of analysts’ expectations by 3.8%. It was a softer quarter, leaving some shareholders looking for more.

Azenta delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $32.45.

Read our full analysis of Azenta’s results here.

UFP Technologies (NASDAQ:UFPT)

With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ:UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.

UFP Technologies reported revenues of $151.2 million, up 37.2% year on year. This number met analysts’ expectations. It was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates.

UFP Technologies delivered the fastest revenue growth among its peers. The stock is down 13.6% since reporting and currently trades at $195.50.

Read our full, actionable report on UFP Technologies here, it’s free for active Edge members.

Repligen (NASDAQ:RGEN)

With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ:RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.

Repligen reported revenues of $182.4 million, up 14.8% year on year. This result beat analysts’ expectations by 4.1%. It was a strong quarter as it also put up full-year revenue guidance beating analysts’ expectations and an impressive beat of analysts’ organic revenue estimates.

The stock is up 24.4% since reporting and currently trades at $148.85.

Read our full, actionable report on Repligen here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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