Sub-theme: Medical devices and equipment
Gerresheimer is a leading supplier of glass and plastic packaging products as well as medical devices for the pharma industry. It also serves clients from the cosmetics and food & beverage industries. Its broad range of products and solutions includes pharmaceutical packaging and products for the safe, simple administration of medicines: Insulin pens, inhalers, micro pumps, prefillable syringes, injection vials, ampoules, bottles and containers for liquid and solid medicines with closure and safety systems as well as packaging for the cosmetics industry.
Impact Score: 14%
Some of the injectables and biologics enabled by Gerresheimer’s products, including GLP-1s, are highly impactful as some of them address previously incurable diseases or diseases which lead to a huge global burden. We believe that there is significant interest in developing these new therapies and strong demand for these therapies. We further believe that these therapies could be transformational for global health and wellbeing. Gerresheimer is well positioned to benefit from the strong growth of the injectables and biologics markets based on pharmaceutical companies’ development pipeline, which should lead to sales growth higher than the overall healthcare sector.
Fundamental Quality: 72%
Gerresheimer operates in a mix of high growth markets, as well as some more commoditised markets. It is generally well-positioned in the markets where it operates, with relatively few competitors. We believe Gerresheimer has the potential to accelerate its revenue and earnings growth by selling an increasing number of High Value Solutions. These are devices that include advanced therapy delivery mechanisms, which are typically priced at a better profit margin than other, less complex products. The key risks we are cognisant of include high customer concentration, and historically poor communication with investors. We note that the new Investor Relations team, and changes in the Board, appear to be driving improvements in the area of governance and communication.
- GHG emissions: Disclosure and targets
- Corporate governance
- Board independence
- Product end-of-life
- Plastic waste from single-use packaging
- Generation of greenhouse gases from operations
- Operations use large amounts of water and chemicals for sterilisation