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Bioprocessing stocks set for a rebound?

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 (FSMEX).

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.

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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 (DHR), Thermo Fisher Scientific (TMO) and Repligen (RGEN), all of which were among the fund’s top holdings as of January 31, 2026, representing about 25% of assets.

For specific fund information, including full holdings, please click on the fund trading symbol above.

Eddie Yoon
Eddie Yoon
Portfolio Manager

Eddie Yoon is a sector leader and portfolio manager in the Equity division at Fidelity Investments.

In this role, Mr. Yoon is responsible for the coverage of health care equipment and supplies stocks and serves as the health care sector leader. Additionally, he manages several funds including Fidelity Advisor Health Care Fund, Fidelity and Fidelity Advisor Stock Selector Mid Cap Fund, Fidelity and Fidelity Advisor All Cap Fund, Fidelity Select Health Care Portfolio, Fidelity Select Medical Technology and Devices Portfolio, Fidelity Advisor Health Care SMA, and Fidelity Disruptive Medicine ETF.

Prior to joining Fidelity in 2006, Mr. Yoon worked on the health care team at JPMorgan Asset Management. He has been in the financial industry since 2002.

Mr. Yoon earned his Bachelor of Arts in business economics from Brown University.

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