West Pharmaceutical's (WST) New Launch to Expand Portfolio
West Pharmaceutical Services, Inc. WST recently announced the receipt of the FDA’s 510(k) clearance and the subsequent launch of its Vial2Bag Advanced 13mm admixture device. The admixture device is indicated for adolescent and adult patients only.
The latest regulatory clearance and launch is expected to significantly expand West Pharmaceutical’s administration systems portfolio with a new smaller-size needle-free admixture device for immediate use IV (intravenous) drug transfer to maximize the benefits of point-of-care nursing. The administration systems are part of the company’s Proprietary Products segment.
Significance of the Launch
The addition of the Vial2Bag Advanced 13mm admixture device will likely complement West Pharmaceutical’s existing Vial2Bag Advanced 20mm admixture device. The two products are expected to provide options for the reconstitution and transfer of a drug using either a 13mm or 20mm vial and an IV bag before administration to the patient. The device is needle-free and has a dual channel design to provide dedicated fluid pathways into and out of the IV bag and a vial spike design for connection to the drug vial.
Per West Pharmaceutical’s management, the 13mm product, a key addition to its portfolio, will likely address the critical need for more drug preparation and delivery options at the point of care.
Industry Prospects
Per a report by Data Bridge Market Research, the global injectable drug delivery market was valued at $17.13 billion in 2021 and is anticipated to reach $46.84 billion by 2029 at a CAGR of 13.4%. Factors like the increasing incidence of chronic diseases, the rising number of elderly population and technological advancements are likely to drive the market.
Given the market potential, the latest announcement is expected to significantly strengthen West Pharmaceutical’s business worldwide.
Another Notable Development
In October, West Pharmaceutical announced its third-quarter 2023 results, wherein it registered a solid uptick in its net sales and organic net sales. Its bottom-line performance was also solid. The company's Proprietary Products segment’s net sales and organic net sales growth were also robust.
The segment’s high-value product (HVP) organic net sales growth was led by customer demand for HVP components such as FluroTec, Daikyo and Envision and HVP devices such as self-injection systems and administration systems.
Price Performance
The stock has gained 49.3% over the past year compared with the industry’s 10.9% rise and the S&P 500's 16.1% growth.
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Zacks Rank & Key Picks
Currently, West Pharmaceutical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 44.4% compared with the industry’s 5.7% rise in the past year.
DexCom, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, with an average of 36.4%.
DexCom’s shares have gained 1.2% against the industry’s 3.3% decline in the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 24.7% against the industry’s 3.3% decline in the past year.
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DaVita Inc. (DVA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
