MeadWestvaco Corp. (MWV - Analyst Report) has introduced Shellpak Renew, the latest design in the Shellpak adherence packaging family. It will be launched at more than 3,600 Walmart pharmacies and is currently being used in nearly 2,000 other retail pharmacies across the U.S.
Shellpak Renew is a ready-to-dispense, recyclable package made of tear-resistant paperboard, Natralock. It has a calendarized blister package that helps in patients’ adherence. Its color-coded labels support pharmacy efficiency.
Moreover, Shellpak Renew has a child-resistant push button and its easy-slide blister makes easier for seniors to handle the package efficiently. Shellpak Renew, which is modeled on MeadWestvaco’s original Shellpak and developed on the feedback from pharmacists and patients, comes in a smaller size that requires less shelf space.
According to research findings, nearly half of all the patients in the U.S. today do not take their medicines as prescribed. This attitude ultimately results in worsening of diseases, leading to increased hospitalizations and even death among patients. The study reveals that the annual cost of non-adherence in the U.S. is estimated to be $290 billion, representing 13% of total health care expenditure.
Shellpak Renew helps in making medications easier for patients besides improving their adherence to medications. Therefore, the pharmacists can now spend more time counseling the patients.
MeadWestvaco intends to foray into the fields of adherence packaging to establish a wider client base. Recently, the company has acquired AARDEX Group, the leader in measuring patients’ adherence to medications. With this acquisition, the company’s portfolio expanded to offer a complete range of packaging, data analysis and service solution that help in addressing the problem of non-adherence to medications among patients.
MeadWestvaco has been implementing various policies to strengthen its position in the global packaging market along with combating the challenging market conditions. We believe that the introduction of Shellpak Renew will help the company in strengthening its position in the packaging market catering to the needs of a wider customer base.
However, MeadWestvaco faces intense competition in each of its businesses, in both domestic and international markets. It faces tough competition from companies like International Paper (IP - Analyst Report) and Weyerhaeuser Co. (WY - Analyst Report).
Currently, MeadWestvaco retains a short-term Zacks #3 Rank (Hold). We have a long-term Neutral recommendation on the stock.