Schott has legally established a stand-alone company for its pharma business to advance its growth strategy.
The pharma business will operate under the new name Schott Pharma AG & Co. KGaA as of August 1st.
As a pioneer in pharma drug containment and system solutions, the international technology group’s pharma division has grown faster than the market in recent years.
Dr Frank Heinricht, Schott CEO, said: "By creating a separate legal entity for our pharma business, we are generating new opportunities to expedite our profitable growth."
"At the same time, this step enables us to explore new financing options, including a possible IPO for Schott Pharma," added CFO Dr Jens Schulte.
"Pharma will remain an integral part of Schott in the future. With this move, we are creating more room for organic and inorganic growth and further potential investments towards becoming climate neutral by 2030," Heinricht continued.
Schott’s portfolio ranges from high-quality vials to glass and polymer syringes to cartridges and ampoules. The company produces approximately 13 billion products yearly to serve drug categories such as mRNA-based drugs and biopharmaceuticals.
Every minute, over 25,000 (approximately) people around the world receive an injection with medication filled in a Schott Pharma product.
"In recent years, our sales in the pharma division have increased continuously, with the latest figure growing double-digit to €650 million for the 2021 fiscal year – although the share of sales related to COVID-19 was only about 3%," said Dr Schulte.
The company is investing €450 million to meet worldwide demand. A new production facility for pre-fillable polymer syringes has started operations in Germany, and a new plant for glass syringes is currently under construction in Hungary.
The company broke ground on new production buildings in China and is planning to triple its capacity for high-quality sterile vials in the USA.
The carve-out is expected be completed by the end of year.