Glass maker Schott's pharma business sets out on its own. Will an IPO follow?

After a period of speedy growth, Schott’s pharma business is setting out on its own.

Monday, the packaging specialist and technology group revealed it has formally set up a standalone company for its drug packaging unit, which will immediately commence operations under the Schott Pharma banner. By separating the company, "we are generating new opportunities to expedite our profitable growth," Schott CEO Frank Heinricht said in a statement.

While Schott’s pharma division is now operating as a standalone company as of Aug. 1, 2022, the carve-out isn’t expected to be complete until the end of the year, Schott said. Schott's pharma business previously operated inside of the global specialty glass maker.

Wasting no time, meanwhile, Schott is already weighing whether to take the pharma carve-out public. The move "enables us to explore new financing options, including a possible IPO for SCHOTT Pharma,” Schott’s chief financial officer, Jens Schulte, Ph.D., added in the company’s release.

Already, Schott says it cranks out some 13 billion pharma packaging units each year. Last year, the company's pharma division netted 650 million euros ($666 million).

Separate from its pharma carve-out, Schott says it’s investing to meet global demand for its packaging solutions. Schott recently kicked off operations at a new production facility for prefillable polymer syringes in Germany. At the same time, construction has kicked off at a new plant for glass syringes in Hungary, the company said.

Elsewhere, Schott recently started work on new production buildings in China and is planning to “triple its capacity for high-quality sterile vials” in the U.S.