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AptarGroup Acquires 2 Companies to Expand Pharma Services

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AptarGroup, Inc. (ATR - Free Report) has acquired two leading pharmaceutical services companies, Nanopharm Ltd. and Gateway Analytical LLC, for a combined value of $50 million. These acquisitions are in sync with AptarGroup’s strategy to broaden its portfolio of services to pharmaceutical and biotech customers, in order to accelerate product developments.

Notably, both acquisitions provide value-added and differentiated testing, development and analytical services for all stages of drug development and commercialization. The expanded services platform enables AptarGroup’s pharma segment to support customers’ complex drug formulations and delivery requirements.

Located in Newport, the U.K., Nanopharm is a leading provider of orally-inhaled and nasal drug product development services. Its specialized contract research services complement AptarGroup Pharma’s existing range of analytical and product development services, and are aligned to its nasal and inhaled products portfolio. Moreover, Nanopharm focuses on seamless translation of pre-clinical development to clinical manufacture.

Gibsonia, PA-based Gateway Analytical provides particulate detection and analytical services to customers developing injectable medicines. Its specialized analytical services complement AptarGroup Pharma segment’s current range of analytical and testing services in the competitive pharmaceutical space.

Additionally, AptarGroup’s strategic investments will further strengthen its Pharma business and drive long-term growth by expanding service offerings. The expertise of both companies complements AptarGroup’s existing range of analytical services as well as brings additional value to customers.

Coming to the price performance, AptarGroup’s shares have gained 31.7% over the past year, outperforming the industry’s growth of 3.0%.

AptarGroup is well placed to gain from the latest innovative product launches. In the Pharma segment, the Bidose Nasal Spray Device has been recently approved by the U.S. FDA for breakthrough therapy in the field of depression. This vital system is a prime less, intuitive and easy to use device with 360-degree functionality and precise spray characteristic delivering two shots of medicine within a single device. This is the first FDA approval and U.S. launch of a prescription drug using AptarGroup’s patented Bidose Nasal Spray delivery system.

AptarGroup remains committed to business expansion through acquisitions to broaden the scope of its technologies, geographic presence and product offerings. In sync with this, the company acquired CSP Technologies, a leader in active packaging technology based on proprietary material science expertise.
Last May, the company acquired 100% of the common stock of Reboul, a French manufacturer specializing in stamping, decorating and assembling metal and plastic packaging for the cosmetics and luxury markets. Moreover, the company has acquired several companies, including Stelmi, Mega Airless, and made a minority investment in Kali Care, Inc., over the past few years. This apart, in 2018, it also expanded its partnership with Propeller Health and made a strategic equity investment in the company. These acquisitions are likely to propel the company’s growth in the days ahead.

In late 2017, AptarGroup commenced a business-transformation plan to drive its top line, boost operational excellence, enhance approach to innovation and improve organizational effectiveness. The company is on track with its business transformation which primarily focuses on the Beauty + Home segment.

Zacks Rank & Other Key Picks

AptarGroup currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector are Chart Industries, Inc. (GTLS - Free Report) , Lawson Products, Inc. and Harsco Corporation (HSC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chart Industries has an estimated earnings growth rate of 52.9% for the ongoing year. The company’s shares have gained 10.1%, in the past year.

Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 45.5% in a year’s time.

Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have gained 6.5%, over the past year.

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