Is Embecta Back on Track After a Tough Year?Is Embecta Back on Track After a Tough Year?
A medtech analyst shares why Embecta is now heading in the right direction.
January 16, 2025
.png?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
Some medtech analysts believe that Embecta, a spinoff from Becton Dickinson & Co., could be on the path to turning its fortunes around.
The diabetes care company has had a tough time lately and nearly two months ago announced it was implementing a restructuring plan and shuttering its insulin patch program.
BTIG analysts met with the Parisippany, NJ-based company’s CEO Devdatt Kurdikar, CFO Jake Elguicze, and Head of Investor Relations, Pravesh Khandelwal during an investor breakfast, to discuss the company’s plans during an investor breakfast held earlier this week.
In a research note, BTIG analyst Marie Thibault wrote, “We believe that Embecta is heading in the right direction...”
She added, “The company remains on track to complete the restructuring program, which includes the discontinuation of the insulin patch pump program, in the first half of FY25. R&D savings associated with the program (~$60-$65M annually) along with reduced separation-related activities will enable Embecta to repay debt more quickly, with the goal to reduce its net leverage ratio to ~3x by the end of FY25 (from 3.7x at the end of FY24).
In 2024, the road was bumpy for Embecta, a firm that won Readers’ Choice for 2022 Company of the Year and was featured on Episode 38 of Season 1 of Let’s Talk Medtech.
In July, the Financial Times reported the company hired advisors from Centerview Partners to assess a potential sale.
According to the article, Embecta's "lackluster" stock performance, low market value, and similarity to other companies that have recently attracted buyout interest could make it a good acquisition candidate.
About the Author
You May Also Like