Medpace Accelerates Capital Returns with an Additional $1 Billion Share Repurchase – Buyback Wednesdays

For this month’s Buyback Wednesdays article, we decided to focus on a company that has had the founder at the helm for over three decades. We wrote about the company in an Insider Weekends post in July 2022 when the CEO purchased shares and then made it a spotlight idea in our August 2022 Special Situations Newsletter. A few weeks ago that company, Medpace Holdings (MEDP), announced a significant buyback of $1 billion (11% of its market cap) alongside reporting strong Q1 results.

Pharmaceutical companies have been increasingly outsourcing non-core functions to focus on key areas like drug discovery and development. By partnering with Contract Research Organizations (CROs) like Medpace, they gain access to specialized expertise needed for clinical trials and regulatory navigation, improving efficiency and reducing R&D costs.

CROs offer end-to-end services, from concept development to FDA approval, eliminating the need for drug sponsors to maintain in-house teams for these functions. Many CROs are also expanding their capabilities to include regulatory consulting, biostatistics, pharmacovigilance, and real-world evidence generation, enabling them to support clients across the entire drug development lifecycle.

We’re revisiting Medpace now to assess the impact of new trends like AI and tariffs on its growth.

Medpace Holdings, Inc. (MEDP): $288.77

Market Cap: $8.64B

EV: $8.35B

Key Insights

• Medpace has been led by its founder-CEO for over 30 years, providing consistent leadership.
• Medpace’s strong balance sheet, high profitability, and regular share repurchases translate into a stock that often trades at a premium.
• The company has shown steady revenue and earnings growth over the years, growing revenue and earnings at a 3-year CAGR of 21.13% and 27.72%, respectively.

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