Stevanato raises full year guidance after COVID-19 booster
Stevanato Group is a provider of drug containment, drug delivery, and diagnostic solutions to the life sciences industry, particularly specialising in syringes, cartridge, and vial systems.
It was the company’s position in this area that saw it agree to provide 100 million glass vials to the Coalition for Epidemic Preparedness (CEPI) last year.
As revealed in its third quarter financials, the demand due to the on-going pandemic has not fallen away. The company’s revenue increased by 37% to €214.5m ($245.7m) and adjusted net profit increased by 39% to €26.4m. The announcement noted that approximately 16% of third quarter revenue was attributable to COVID-19.
During its Q3 earnings presentation, Stevanato noted that the pandemic still ‘remains a tailwind’ for the company, as it works with customers in single dose syringes and multi-dose vial formats. It also stated that antiviral pills against COVID-19 would not disrupt vaccination, but would instead ‘supplement’ the vaccination effort.
A spokesperson for the company told BioPharma-Reporter, “We have seen increased demand for our drug containment solutions and remain engaged with the majority of players in the COVID vaccine space as they assess future requirements for the on-going vaccination efforts including boosters.”
The spokesperson added that the company currently supplies syringes and vials to 90% of the companies marketing COVID-19 vaccines.
Based on the performance in Q3 and the previous quarters, Stevanato raised its full-year revenue guidance to €825m to €835m, up from previous guidance of €820m to €830m.
Pandemic and the supply chain
As well as providing a revenue windfall, in a Q3 investor call, the CEO of the company, Franco Moro, acknowledged that it had introduced some ‘temporary pressure’ to the business. This included an increase in logistical costs, which he referred to as a ‘near-term challenge.’
In regard to supply chain issues that could affect the group, however, Moro downplayed any disruption.
“To date, we have not experienced significant supply chain issues, but we have taken precautionary steps to increase the amount of raw materials on hand. And in some cases, we are keeping more inventory available,” he stated.
Facility in the pipeline
Last month, Stevanato began construction on a US-based manufacturing facility in Fisher, Indiana. The company expects the site to be operational in 2023 and it will invest $145m to build and equip the plant, which will cover 370,000-square-feet.
The facility will produce EZ-Fill syringes and vials for the North American market, while it also plans to use the location as a centre for after-sales support, which will involve offering technical support, as well as maintenance for visual inspection, assembly and packaging equipment.
The spokesperson explained that the EZ-Fill solutions are driving growth at the company because “they reduce time to market, lower their overall cost of ownership and reduce supply chain risk.”
The expanded presence in Indiana will add to the company’s existing manufacturing facility in California and its technology excellence centre in Boston.