West Pharmaceutical Services WST recently completed the sale and transfer of the manufacturing and supply rights for its SmartDose 3.5mL On-Body Delivery System and associated facilities to AbbVie ABBV. The transaction follows the $112.5 million sale agreement with AbbVie announced in January, subject to working capital and other adjustments.
Per management, West Pharmaceutical's pioneering work in on-body delivery technology has improved the lives of people worldwide. Following a portfolio review, the company decided to transfer the SmartDose 3.5mL product to AbbVie to focus on customer development pipeline and advance patient-centered, large-volume on-body delivery solutions that drive durable and profitable growth.
Likely Trend of WST Stock Following the News
Shares of WST have lost 3.1% since the announcement on July 1. Year to date, the stock has gained 28.5% against the industry’s 1.2% decline. The S&P 500 has risen 9.5% in the same timeframe.
The completion of the transaction is likely to support West Pharmaceutical's long-term growth strategy by allowing the company to concentrate resources on higher-growth drug delivery technologies. The divestiture streamlines WST’s product portfolio while reinforcing its commitment to developing innovative solutions for larger-volume injectable medicines.
WST currently has a market capitalization of $25.16 billion.
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More on the News
At the time of the announcement, the SmartDose 3.5mL platform was expected to contribute approximately 4% of West Pharmaceutical's fiscal 2025 revenues, making it a relatively small part of the company's overall business. The completion of the sale allows West Pharmaceutical to move forward with a more focused portfolio centered on its core drug delivery business.
Following the transaction, the company will continue developing and manufacturing its other SmartDose platforms, including the SmartDose 10mL On-Body Delivery System designed for larger-volume drug delivery.
Industry Prospects Favoring the Market
Going by data provided by Fortune Business Insights, the on-body drug delivery devices market is anticipated to be valued at $486.43 million in 2026 and is expected to witness a CAGR of 6.9% through 2034.
Factors like the growing demand for on-body drug delivery devices, increasing use of biologic drugs and biosimilars, rising prevalence of chronic diseases, greater adoption of self-administered subcutaneous therapies and a shift toward home-based healthcare are driving the market’s growth.
Other News
In June, West Pharmaceutical appointed Michel Lagarde as president, CEO and a member of its board of directors, effective Aug. 31, 2026, succeeding retiring president, CEO and board chair Eric M. Green. As part of the leadership transition, lead independent director Robert F. Friel will assume the role of board chair.
In March, West Pharmaceutical expanded its Dublin facility with a new 165,000 square foot building, significantly boosting its contract manufacturing capacity. The move is aimed at supporting rising global demand for high-volume injectable therapies, particularly in fast-growing areas like diabetes and obesity.
West Pharmaceutical Services, Inc. Price
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WST’s Zacks Rank & Other Key Picks
Currently, WST carries a Zacks Rank #2 (Buy).
Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG and Pacific Biosciences of California PACB.
Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 core earnings per share of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical has a long-term estimated growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Pacific Biosciences of California, carrying a Zacks Rank #2 at present, reported a first-quarter 2026 adjusted loss per share of 12 cents, which came narrower than the Zacks Consensus Estimate by 29.4%. Revenues of $37.2 million missed the Zacks Consensus Estimate by 9.3%.
Pacific Biosciences of California has an estimated earnings growth rate of 22.6% for 2026. PACB’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 29.8%.
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West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).