Boosted by COVID-19, Stevanato seeks $100M IPO to invest in biologics and vaccine delivery

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The New York Stock Exchange (Pixabay)

Stevanato has filed to raise up to $100 million in an IPO. The offering is intended to equip Stevanato to invest in its biologics and vaccine delivery capabilities after a year in which COVID-19 caused sales to soar.

Stevanato, an Italian manufacturer of vials, syringes and drug delivery systems, is one of the many relatively low-profile companies that have made it possible to rapidly make and administer more than 2 billion doses of COVID-19 vaccines. Stevanato estimates it supplies glass vials and syringes to around 90% of currently marketed vaccine programs. The contracts contributed to a 23% jump in sales last year.

With the bump from COVID-19 continuing in the first quarter, when sales rose 41%, Stevanato is now seeking funding from public investors. The plan is to list on the New York Stock Exchange to secure money to support expansion plans.

Stevanato plans to use the money to expand the manufacturing facilities around its headquarters in Italy while also setting up plants in Indiana and China “with a strong focus on biologics and vaccines.” Strategic acquisitions that broaden Stevanato’s offering are also on the cards.

Like other companies that are supporting the response to COVID-19, Stevanato faces uncertainty about the persistence and magnitude of additional sales tied to the pandemic. Stevanato noted the uncertainty in its IPO filing but also sees reasons to think COVID-19 will provide a lasting tailwind to its business.  

“We anticipate that demand for syringes, vials and related products and services will remain elevated as the COVID-19 vaccine and treatment roll-out continues globally and, more generally, as epidemic preparedness, including through new vaccination programs and booster shots, becomes a greater priority going forward,” the company wrote. 

Stevanato is looking to drug delivery systems to support the growth. The company has a portfolio that features a pen injector, an auto-injector, an inhaler and a wearable delivery system. In recent years, the company has invested in the portfolio and development of new systems as it competes with SHL Medical, Ypsomed Selfcare Solutions, West Pharma and Becton Dickinson for the market.