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.

Omar Ford

January 16, 2025

1 Min Read
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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.

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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

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

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