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West Signs Agreement to Sell the Manufacturing and Supply Rights for SmartDose® 3.5mL On-Body Delivery System to AbbVie

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EXTON, Pa., Jan. 12, 2026 /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a global l...

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AI Summary

AbbVie has agreed to purchase the SmartDose 3.5mL On-Body Delivery System from West for $112.5 million, expected to close in mid-2026. This acquisition could provide AbbVie with innovative delivery technology, potentially enhancing future revenues, as SmartDose may contribute 4% of West's revenue in 2025.

Sentiment Rationale

The acquisition of SmartDose potentially enhances ABBV's capabilities and pipeline, reminiscent of other strategic acquisitions that led to stock price appreciation in the pharma space.

Trading Thesis

ABBV is a buy on this strategic acquisition for long-term growth potential.

Market-Moving

  • Investors may see increased confidence in AbbVie's drug delivery developments.
  • Potential future revenues from SmartDose could enhance ABBV's pipeline.
  • Mid-2026 closure may set a positive precedent for similar acquisitions.

Key Facts

  • AbbVie acquires SmartDose® 3.5mL for $112.5 million.
  • Closing expected in mid-2026, subject to conditions.
  • SmartDose anticipated to generate 4% of West's 2025 revenue.
  • West continues development of other SmartDose products.
  • Future payments possible based on milestone achievements.

Companies Mentioned

  • West Pharmaceutical Services, Inc. (WST): Selling SmartDose to ABBV; strong performer in injectable solutions.
  • AbbVie Inc. (ABBV): Strategically enhancing product offerings with SmartDose acquisition.

Corporate Developments

This development falls under Corporate Developments, as it signifies AbbVie's expansion in the injectable drug delivery market, positioning it for competitive advantage in future therapeutic applications.

West Pharmaceutical Services Sells SmartDose® 3.5mL Delivery System Rights to AbbVie

West Pharmaceutical Services, Inc. (NYSE: WST), a prominent innovator in injectable drug administration solutions, has formally announced its agreement to sell all manufacturing and supply rights for the SmartDose® 3.5mL On-Body Delivery System to AbbVie (NYSE: ABBV). The deal, valued at $112.5 million, is expected to finalize in mid-2026, subject to certain closing conditions and adjustments.

Transaction Overview and Implications

The definitive agreement outlines West's commitment to ensuring a seamless transition of the SmartDose® 3.5mL On-Body Delivery System, which includes the execution of ongoing critical projects. This transition may also include future project payments based on milestone achievements prior to the closure of the deal.

As Eric M. Green, President, Chief Executive Officer, and Chair of the Board, stated: "West pioneered the innovation of the on-body delivery device technology for complex injectable medicines, which has improved the lives of people around the world." He emphasized that the decision to transition SmartDose 3.5mL to AbbVie aligns with their strategy to enhance patient-centric solutions while supporting their development pipeline.

Financial Forecast and Revenue Impact

The revenues from the SmartDose 3.5mL On-Body Delivery System are projected to account for approximately 4 percent of West's total revenues in fiscal year 2025. West anticipates providing additional insights into this forecast during their fourth quarter 2025 earnings call in February, which will coincide with guidance for 2026.

  • Transaction Value: $112.5 million
  • Project Completion: Expected mid-2026
  • Revenue Contribution (2025): 4 percent of total revenues

Continued Development of SmartDose Technology

Despite this transaction, West will maintain the development and manufacturing of other SmartDose variants, including the SmartDose® 10mL On-Body Delivery System, which targets the growing demand for larger volume adaptive technologies.

About West Pharmaceutical Services

West Pharmaceutical Services, headquartered in Exton, Pennsylvania, stands as a leader in providing innovative, high-quality injectable solutions and services. With over 10,000 employees and 25 manufacturing facilities worldwide, West is committed to ensuring the safe and effective delivery of life-saving medicines. In fiscal year 2024, the company reported $2.89 billion in net sales and is included in the Standard & Poor's 500 index.

For more information, visit www.westpharma.com.

Forward-Looking Statements

This communication contains forward-looking statements as defined by federal securities laws, projecting expected timelines and potential outcomes related to the transaction with AbbVie. However, these statements are subject to various risks and uncertainties, including regulatory approval delays and the inability to realize projected benefits, which could cause actual results to differ materially. For further details and risks, please refer to West's Annual Report on Form 10-K for the year ended December 31, 2024.

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