Gerresheimer’s focus on high-value solutions, sustainable growth

'Formula G’ strategy paying off

With the jointly developed solution, Gerresheimer’s physical primary packaging is provided with a trusted “key”, enabling access to its digital twin. Primary packaging, such as syringes or vials, “travel” through the whole supply chain, from production to the point of care, connecting and collecting information that will be linked to their unique ID. Photo Gerresheimer

At its Capital Markets Day, generating sustainable value, Gerresheimer AG – a provider of healthcare & beauty solutions and drug delivery systems for pharma, biotech, and cosmetics – reaffirmed its growth agenda and increased its revenue and adjusted EBITDA guidance. The company continues to execute consistently its ‘formula G’ strategy while actively managing global, external challenges. 

Gerresheimer has achieved important milestones on its transition towards becoming an innovation leader, solution provider, and system integrator. We continuously improved our competitiveness with a focus on customer centricity, innovation, and operational excellence,” said Dietmar Siemssen, CEO of Gerresheimer AG. “Our ‘formula G’ strategy process is paying off and generating sustainable growth across all divisions. With new orders for high-value solutions and medical devices, we reinforced our leading positions in attractive markets. We continue to shift the portfolio from volume to value and expand our margins.” 

High-value solutions

Attractive growth projects, including new biologics orders in both high-value solutions and contract manufacturing, are fueling Gerresheimer’s transformation into a solution provider and underlining its position as a strategic partner of choice for the global pharma and biotech industries. Gerresheimer’s expertise and strong track record are enabling the company to accelerate sustainable, profitable growth by consistently increasing the revenue share of biologics solutions and injectables. In particular, “ready-to-fill” solutions in syringes and vials are driving growth in high-value solutions while medical devices such as auto-injection devices and pens are boosting growth in the area of contract manufacturing. 

Gerresheimer’s syringe segment offers a broad portfolio of innovative solutions such as baked-on siliconized syringes, silicone-free systems, dual-chamber syringes, or the Gx  InnoSafe solution. The company offers a broad range of products and services together with optimal technical solutions. While doubling its syringes capacity by FY 2027, Gerresheimer expects to triple its revenues in this area. 

Ready-to-fill (RTF) vs glass vials  

Gerresheimer is a market leader for vials with a market share of more than 30%. There is a disproportionate growth potential in high-value vials and cartridges. On the back of the successful market conversion in syringes, shifting from bulk towards ready-to-fill of 95% percent over the last decade, the new industry standard EZ-fill smart supports the repetition of this success story for vials and cartridges.  

Medical devices

Gerresheimer is well-established in the market for medical devices such as inhalers, pens, and auto-injection devices. With an increasing incidence of chronic diseases such as Diabetes 2 and obesity, the obesity treatment market is expected to grow disproportionately. More than 650 million people worldwide suffer from obesity, representing a total potential treatment market value of about US$ 50 bn. Gerresheimer will cover GLP-1 obesity treatment with specific solutions across wide areas of the portfolio. The order book for medical devices is growing significantly, and Gerresheimer recently won two large contracts that will consistently increase its profitable organic growth. 

Unlocking data

Digitalization in healthcare is another emerging market that will improve healthcare outcomes and reduce healthcare costs. Gerresheimer pursues this new business segment with a clear focus on customer-centricity in data-driven business models. The company is connecting healthcare data between patients and doctors to improve therapy compliance and outcome. Leveraging strategic partnerships, Gerresheimer expands its expertise to deliver a broad and integrated solutions portfolio. 

Sustainability goals

Sustainability is one of the main pillars of Gerresheimer’s strategy and is an integral part of the company’s business model. The consistent execution of the sustainability strategy, together with strong market positions enable Gerresheimer to thrive in a  challenging environment. The recent EcoVadis gold award is proving to be a valuable catalyst for new business relationships and contributes directly to the strong growth in sales.

Guidance and financials 

With the consistent implementation of its ‘formula G’ strategy process, Gerresheimer continues to generate sustainable and profitable growth and is delivering on its financial targets. Gerresheimer acted early to push forward its refinancing strategy. The company issued 300m Euros of new promissory loans in November, which were again significantly oversubscribed. With that, Gerresheimer secured the refinancing of upcoming maturities until the end of 2024 and fully funded its investment program.  

On the basis of its robust financial position, strong order books, and the successful  implementation of its investments, the company increases its outlook as follows: 

Guidance for FY 2023 (For group level, FXN): 

  • Organic revenue growth: at least 10% 
  • Organic adjusted EBITDA growth: at least 10% 
  • Adjusted EPS growth: low single digit. 

Mid-Term Guidance (For group level, FXN): 

  • Organic revenue growth: at least 10%  
  • Organic adjusted EBITDA margin: of 23-25 %  
  • Adjusted EPS growth: at least 10 %

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