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The Business 

Gerresheimer develops designs and produces primary packaging material made out of glass and plastics. Focus is on specialized niche applications, mainly for the pharmaceutical industry such as prefilled syringes, inhalers or vials. The company is structured into three main divisions:

Plastics & Devices: complex and customer-specific products for simple and safe drug delivery as well as diagnostics and medical technology products.

Primary Packaging Glass: packaging made of glass for medicines and cosmetics and on a smaller scale glass container for the food and beverages industry.

Advanced Technologies: the development and manufacture of intelligent drug delivery systems, digital and electronical, often to allow self-administration of medication.

The division Advanced Technologies was recently founded in 2018, whereas the former division Life Science Research was sold in 2016.

Source: Company Data

Overview by business

Plastics & Devices

The plastics and devices segment comprises operations across the field of drug delivery products as well as diagnostic and medical technology products. As one of the few vertically integrated suppliers, Gerresheimer spans every link in the value chain to ensure tailored service for the customers.

Source: Company Data

Gerresheimer supplies national and regional pharmacy chains, supermarkets and wholesalers with products for simple and safe drug delivery (including but not limited to inhalers, prefillable syringes and insulin pens), diagnostic and medical technology (such as skin-prick aids or test systems for laboratory and molecular diagnostics) and pharmaceutical plastic containers for liquid and solid medication (eye droppers or nasal spray vials) that if necessary come with closure and safety systems. Gerresheimer’s Plastics & Devices division showed growth in the past. Since 2015, sales grew on average by 3.28% yoy (CAGR 2015-2019), however have been stagnating in the last three years.

Source: Company Data

The drug delivery devices are the main revenue and growth driver in this segment, this comprises insulin pens, inhalers and prefillable syringes. The company will retain its European focus and expects further growth in the next financial year in this section. In terms of margins, the Plastics & Devices division has been able to post the highest adjusted EBITDA margins of the entire group. In fact, average adjusted EBITDA margins have been in the range of some 26%, also reflecting the strong demand for Gerresheimer’s products.

 

Primary Packaging Glass

Within the Primary Packaging Glass division Gerresheimer offers a wide range of glass packaging such as bottles, vials and jars for medicines, cosmetics and beverages. They cover almost the entire range of necessary packaging in the pharmaceutical sector with high-quality products, this includes for example injection, infusion and transfusion bottles, dropper bottles and syrup bottles.

Source: Company Data

The pharmaceutical packaging is made of tubular and molded flint and amber glass (specialty products are also made with borosilicate glass), whereas the cosmetic industry mostly requests vials and glass containers for perfumes and skin-care products. Those are generally made of clear, opal or coloured glass where there is a wide variety of processes for glass finishing and surface treatment employed. The products for the beverage industry combine the aforementioned glass variations to produce packaging for liquid foods or spirit miniatures. All glass can be supplied in customized shapes. Nonetheless, main customer group comes from a pharmaceutical background. However, the demands in the cosmetic business have grown stronger in the last years.

The Primary Packaging Glass division (representing nearly half (~45%) of total group’s sales) saw a slight decrease in recent years of -0.6% yoy (CAGR 2015-2019). However, sales have been up by 1.3% yoy in the last three years (CAGR 2017-2019).

In terms of margins, the Primary Packaging Glass division has been able to post the second highest adjusted EBITDA margins with the average adjusted EBITDA margins in the range of approximately 20%. The company will continue to invest in automation and expansion the global capacity and product portfolio in the future, with main focus on the pharmaceutical and cosmetics industry.

Advanced Technologies

This division is part of Gerresheimer since its foundation in mid 2018 after acquiring the Swiss tech company Sensile Medical to develop and manufacture intelligent drug delivery systems. The portfolio currently includes patented micro pumps to help patients self-administer medication for Parkinsons’s or heart failure as well as the development of a platform for smart inhalation measurement systems. This division is an innovation driver for the company, with very fast changing dynamics.

Source: Company Data

Due to its relatively new instantiation to the company the calculation of key figures such as division growth and EBITDA performance are not meaningful.

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