AptarGroup (ATR) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic priorities and leadership focus

• Commitment to delivering on 2026 targets while preparing for long-term growth, with a strong focus on the Pharma segment as the primary growth engine.

• Ongoing listening tour to reengage with customers and teams, ensuring resource allocation and CapEx are directed to high-return opportunities.

• Emphasis on building value beyond products, offering integrated solutions, services, and digital support to become a trusted collaborator across business categories.

• Leveraging expertise from pharma to support transitions in beauty and consumer healthcare, especially as boundaries blur between skincare and healthcare.

Business model, portfolio, and market positioning

• Not a traditional packaging company; offers proprietary drug delivery devices, active material science, and a broad range of technical and regulatory services.

• Pharma EBITDA margins consistently in the 32%-36% range, reflecting a differentiated technology platform.

• Deep involvement in drug development programs, supporting customers from formulation through regulatory approval, especially in respiratory, ophthalmic, and dermal applications.

• Long-standing relationships and competitive advantages in beauty, food, and beverage, solving complex dispensing challenges.

Growth, innovation, and pipeline

• Pharma segment has grown at a 9% CAGR over nine years, with recent volatility due to emergency medicine inventory adjustments, notably impacting 2026 by $65 million.

• Excluding emergency medicine, pharma grew 8% in Q2, with injectables up 9% and consumer healthcare up 15%. Long-term 7%-11% growth target remains unchanged.

• Innovation and pipeline conversion are key to accelerating growth, as seen in partnerships with major brands and new product launches.

• Expansion into new therapeutic areas (cardio, neuro, biologics) and delivery routes (nose-to-brain, pulmonary) supports margin stability and growth.

• Active research collaborations, such as with Massachusetts General Hospital, to advance nose-to-brain drug delivery science.