Insulin pens & Brazil buy drive Gerresheimer growth
A 37 per cent increase in plastic systems’ revenue drove a strong quarter at Gerresheimer. Growth at the plastics systems unit more than offset flat sales at other units to help Gerresheimer record a double-digit revenue increase.
“With a strong burst of growth in the third quarter we gained ground and further developed our strong market position. Our medical plastics systems business did extremely well”, Uwe Rohrhoff, CEO of Gerresheimer, said.
Sales at the tubular and modular glass divisions were flat, roughly matching the trend seen in earlier quarters, but Gerresheimer has fixed capacity constraints at the RTF syringe business. Productivity at the RTF unit was low, limiting the impact of improved capacity use, but overall growth was strong.
In response Gerresheimer has upped its revenue growth guidance by a percentage point. Full year sales growth of seven to eight per cent is now predicted and Gerresheimer is confident industry trends are favourable to its business.
Adaptation & acquisition
Integrating Brazil-based Vedat, which Gerresheimer bought for €78.2m ($104.4m) in March, contributed to plastic systems growth and the company has further plans for acquisitions and emerging markets.
“In future, the emerging markets and manufacturers of generic drugs, and manufacturers of patent-free active ingredients, will drive future growth in the pharmaceutical sector”, Gerresheimer said.
The rise of generics and emerging markets will increase the number of drugs sold. Gerresheimer expects sales of primary packaging and drug delivery systems to grow on the uptick in drug volumes.
In adapting to the new environment Gerresheimer has made takeovers, such as Vedat, and this strategy will continue. “Acquisitions, after careful consideration of opportunities and risks, will continue to play an important role in the future”, Gerresheimer said.
Shares in Gerresheimer were up 7.3 per centat the time of publication.