The Mainz-based special glass manufacturer Schott is in the starting blocks with the planned IPO of its pharmaceutical division. “The Board of Directors of Schott AG will discuss this with us and the consultants in a timely manner and will make a decision in the spring,” said Andreas Reisse, CEO of Schott Pharma, the German Press Agency.
The necessary legal requirements have been created. “The main issue with an IPO is timing.” At the beginning of 2023, the mood on the stock market was significantly more positive than last year. 2022 was considered a difficult year for IPOs because of the Ukraine war, the rapid increase in inflation and the rise in key interest rates.
Schott Pharma manufactures syringes made of glass and special plastic, ampoules and vials for the medical sector. Unlike the pharmaceutical company Biontech, which has its headquarters only a few kilometers away from Schott, Schott Pharma would not be listed in New York but in Frankfurt/Main. “That makes sense for Schott as a German company with its headquarters in Mainz,” emphasized the 61-year-old.
The stock market plans are receiving a strong tailwind from the latest business figures. In the report presented for the first time as an independent division, Schott Pharma reported sales growth of 27 percent to EUR 821 million in the past financial year, according to preliminary figures. The operating result even increased by 33 percent to 219 million euros, as can be seen from the figures available to the dpa on Thursday.
Important US market in focus
According to Schott Pharma, it is benefiting above all from the strong growth in the market for drugs that are administered by injection. In the important US market, more than half of all newly approved drugs are injectable products. “We are growing faster than the market and expect it to stay that way,” said Reisse. The market segment relevant to the company is growing by seven to eight percent per year.
The mother Schott AG has announced that it wants to keep at least 70 percent of its daughter. “We want to remain part of Schott,” stressed Reisse. “A strong mother in the background is good for us.” The spin-off brings a little more freedom and dynamism to Schott Pharma. “And we have better access to the capital market and to financing options than under the Schott AG foundation model.”
Around 4700 employees worldwide
Schott AG is wholly owned by the Carl Zeiss Foundation, based in Heidenheim in Baden-Württemberg and Jena in Thuringia. Schott spun off its pharmaceutical business last August. Around 4,700 people work for Schott Pharma worldwide. In Germany, the company has, in addition to its headquarters in Mainz, an important production site in Müllheim in Baden.
According to Schott-Pharma, it is now financing its growth entirely from its own resources. “The better access to the capital market through the IPO will be of particular interest if we consider an acquisition,” said Reisse. You don’t have a specific company in mind at the moment, but you always monitor the market. “And once there’s a good opportunity, we’re ready.”
