Barclays' Rating Changes#
Barclays has upgraded Ypsomed to an "overweight" rating, indicating a positive outlook, while downgrading Gerresheimer to "underweight," suggesting a less favorable view. The firm has set price targets of CHF 343 for Ypsomed and €19 for Gerresheimer. This shift highlights Barclays' preference for device manufacturers in Europe’s injectable drug packaging market.
Growth in Injectable Drug Packaging#
The drug containment solutions (DCS) and devices market is projected to reach €8.8 billion by 2025, with an expected annual growth rate of 9% through 2030. Notably, the auto-injector segment, valued at €1.3 billion, is anticipated to grow by 18%, while pre-filled syringes are expected to increase by 8% during the same period.
Ypsomed's Market Position#
Ypsomed holds a leading position in pen injectors and ranks second in auto-injectors, capturing about 20% of the auto-injector market. Barclays forecasts a 16% growth in Ypsomed's revenue and a 14% increase in earnings before interest and taxes (EBIT) for its Delivery Solutions unit from FY26 to FY30, excluding contributions from Sanofi. The company has strong contracts, with over 90% denominated in Swiss francs and inflation adjustments to protect profit margins.
Concerns for Gerresheimer#
Barclays downgraded Gerresheimer due to concerns about its market position and an ongoing accounting investigation by BaFin. The company has a high debt level, with a leverage ratio of 4.8 times following its acquisition of Bormioli for €800 million. The stock is trading at a low price-to-earnings ratio of 8.9 times for 2026, and less than 10% of its revenue comes from higher-value products like pre-filled syringes. Barclays estimates that divesting certain assets could reduce leverage significantly, although a potential rights issue might dilute earnings per share.