New York-listed Avantor Inc was among the underperformers in our portfolio for the four-month period, with a 18.0% loss. The company is a leading global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. Avantor also supplies chemicals for vaccine development and manufacturing, including solutions that support Covid-19 vaccines.
The case for investing in the company is its lucrative business model and position as a key player in the value chain. Avantor’s business model is centred around high recurring revenues and strong and consistent cashflow generation. Its dynamic products and services are used in virtually every stage of the most important research & development and production activities of the industries they have a presence in. Given its global scale, along with customised solutions for clients and through its e-commerce platform, Avantor’s position as a key player in the value chain further reinforces its competitive advantage.