By Patrick Wingrove
(Reuters) – Gerresheimer CEO Dietmar Siemssen mentioned he expects about 4% of the corporate’s income progress per yr from offers to produce makers of medicine for weight reduction and diabetes with vials, cartridges, syringes and autoinjectors.
The German firm reported in February that it expects to develop a mean of 10% per yr. Almost half of that may come from its affiliation with medication within the GLP-1 class, the CEO informed Reuters. Novo Nordisk (NYSE:)’s in style weight problems drug Wegovy and Eli Lilly (NYSE:)’s in demand Zepbound are GLP-1 medication.
Siemssen mentioned he expects gross sales associated to GLP-1 medicines to surpass 100 million euros this yr and to achieve not less than 350 million euros ($379 million) inside the subsequent three years, based mostly on precise contracts and orders.
“We’re simply in the beginning of the ramp up in the direction of the whole marketplace for (these medication), and the largest progress you will notice from 2025 to 2027,” he mentioned.
Two analysts contacted by Reuters mentioned they anticipate Wegovy on common to usher in gross sales of about $8.6 billion this yr and $12.86 billion in 2025. They forecast gross sales of Zepbound to be round $4 billion this yr and $10.8 billion subsequent yr.
Initially developed for sort 2 diabetes, GLP-1s additionally scale back meals cravings and trigger the abdomen to empty extra slowly.
Analysts see the weight-loss drug market reaching not less than $100 billion by the top of the last decade, as customers flock to Wegovy and Zepbound, which have been proven to cut back weight by as a lot as 20%, and different medicines in growth.
JPMorgan in a report final yr mentioned Gerresheimer makes injection pens to manage the medication for Novo and Lilly. Gerresheimer confirmed that its dual-chamber syringe can be utilized by Novo Nordisk for its experimental weight problems drug cagrisema, in accordance with a Jefferies word from this month.
Gerresheimer is already producing merchandise for GLP-1 medication in Germany and is ramping up a plant in Mexico that will even be used to provide them, Siemssen mentioned.
“The Mexican plant won’t solely host GLP-1 merchandise, however can be our key facility for the North American markets,” he mentioned.
The corporate manufactures pens which might be used for GLP-1 medication in addition to different medicines within the Czech Republic, South America, and the U.S., and can produce them in China sooner or later, the CEO mentioned.
The corporate additionally will begin producing merchandise that could possibly be used for GLP-1 medication out of a brand new facility within the U.S. within the fall of 2025, he added.
Brazil is the one South American nation by which Gerresheimer manufactures, in accordance with the corporate web site.
Gerresheimer recorded 1.99 billion euros ($2.15 billion) in gross sales final yr and mentioned it expects income progress of 5%-10% this yr and 10%-15% in 2025.
Not less than two of its rivals, together with weight problems drug cartridge provider Schott Pharma (ETR:), are forecast to develop by greater than 9% this yr.
The primary firms producing elements for self-injectable medication embrace West Prescribed drugs, Ypsomed and Gerresheimer, in accordance with a Bernstein analysis report revealed in August.
Ypsomed in September mentioned it has signed a long-term provide cope with Novo Nordisk for autoinjectors.
