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AptarGroup (ATR) Eyeing Voluntis to Expand in Digital Therapeutics

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AptarGroup, Inc. ATR is in discussions to acquire Voluntis in a bid to expand its digital therapeutic solutions and digital health services across various chronic conditions and diseases.

Digital therapeutics (DTx) help patients and caregivers treat or prevent diseases through evidence-based interventions supported by high quality software solutions. DTx is used independently or in connection with medications, devices and other therapies to enhance patient care and health outcomes.

Voluntis’ Theraxium platform helps patients manage their treatment with assistance from healthcare providers. This platform provides real-time decision support for an extensive range of chronic diseases, while enabling healthcare providers to remotely monitor the patient’s treatment process and the development of the disease.

This buyout will provide AptarGroup an immediate access to an established proprietary platform and algorithms, which will enhance digital solutions for biotech and pharmaceutical customers as well as other healthcare investors. The company will be able to serve patients and healthcare professionals with a varied range of effective tools to improve clinical outcomes by combining digital therapeutics with AptarGroup’s existing digital health portfolio of connected devices.

This strategic investment will help expand AptarGroup’s digital healthcare offerings and drive innovation in the healthcare space. Per the anticipated deal, Aptar will buy 64.6% of Voluntis share at €8.70 per share for €50.8 million ($61.5 million). The company plans to fund this deal with its existing cash in hand. After the deal’s closure, the transaction is likely to have a dilutive impact on the company’s adjusted earnings per share in the range of 1 cent per share to 2 cents per share for 2022.

AptarGroup’s innovative solutions and services serve a wide range of end markets, comprising pharmaceutical, beauty, personal care, home, food and beverage. Its Pharma segment has been witnessing higher sales to the injectables and active material science solution markets owing to solid demand for vaccine components and active material science solutions.

The Pharma segment’s active material science technology was selected to protect two new at-home COVID-19 tests that have received Emergency Use Authorization from the FDA. In the prescription drug market, the company’s unidose powder device is being used in a pivotal trial of intranasal powder-based Naloxone by Nasus Pharma. Also, a new nasal spray treatment for allergic rhinitis features AptarGroup’s nasal spray device. In the injectables market, the company continues to support various COVID-19 vaccine distributions across all regions.

Price Performance

The company’s shares have gained 35.2% over the past year compared with the industry’s growth of 43.8%.

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Zacks Rank & Stocks to Consider

AptarGroup currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industrial products sector are Tennant Company TNC, Encore Wire Corp. WIRE and Arconic Corp. ARNC. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.

Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.

Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.

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