SCHOTT establishes stand-alone company to promote business growth
SCHOTT has legally established a stand-alone company for its pharma business to advance its growth strategy. As part of the carve-out, the pharma business will now operate under the new name SCHOTT Pharma AG & Co. KGaA.
Key highlights:
- SCHOTT has established a stand-alone company for its pharma business to advance its growth strategy, namely SCHOTT Pharma AG & Co. KGaA.
- The group’s pharma division reached double-digit figures to EUR 650 million for the 2021 fiscal year, enabling the growth strategy.
- SCHOTT's division is operating as a stand-alone company, however, the carve-out is expected be completed by the end of year.
"By creating a separate legal entity for our pharma business, we are generating new opportunities to expedite our profitable growth," says SCHOTT CEO, Dr. Frank Heinricht. "At the same time, this step enables us to explore new financing options, including a possible IPO for SCHOTT Pharma," adds CFO, Dr. Jens Schulte.
"Pharma will remain an integral part of SCHOTT in the future. With this move, we are creating more room for organic and inorganic growth and further potential investments towards becoming climate neutral by 2030," Heinricht continues.
Pharma drug containment and system solutions, just as drug manufacturing, is subject to the strictest regulations. Working in a dynamic market with high barriers to entry, SCHOTT Pharma is optimally positioned to develop new opportunities. The portfolio ranges from high-quality vials to glass and polymer syringes to cartridges and ampoules.
The company produces around 13 billion products yearly to serve modern drug categories such as mRNA-based drugs and biopharmaceuticals. Approximately every minute, over 25,000 people around the world receive an injection with medication filled in a SCHOTT Pharma product.
"In recent years, our sales in the pharma division have increased continuously, with the latest figure growing double-digit to EUR 650 million for the 2021 fiscal year – although the share of sales related to COVID-19 was only about 3%," says Schulte.
The company is investing a three-digit million Euro figure to meet worldwide demand. A new production facility for prefillable polymer syringes has started operations in Germany, and a new plant for glass syringes is currently under construction in Hungary. The company broke ground on new production buildings in China and is planning to triple its capacity for high-quality sterile vials in the USA. The SCHOTT Group’s pharma division is operating as a stand-alone company, however, the carve-out is expected be completed by the end of year.