Stevanato Group (STVN) Morgan Stanley 24th Annual Global Healthcare Conference summary

Business performance and growth drivers

• 2026 performance is in line with expectations, with double-digit constant currency growth in the BDS segment and strong demand for high-value products, especially syringes and EZ-fill cartridges.

• High-value products now represent 46%-47% of revenue, with ongoing investments to expand capacity in prefilled syringes, Alba syringes, and EZ-fill cartridges to meet rising demand, particularly from biologics.

• Gross profit margins for high-value products range from 40%-70%, significantly higher than bulk configurations, supporting ongoing margin expansion; adjusted EBITDA is planned to expand by 170 basis points in 2026.

• Ramp-up of new plants in Fishers and Latina is ongoing, with full ramp-up expected by 2028, contributing to future profitability improvements.

• The Deora Fixed-Dose Pen was launched in June, complementing the Alina variable-dose pen and Aidaptus Autoinjector, with regulatory approvals expanding in Europe.

GLP-1 and biologics market trends

• GLP-1s now account for 22%-23% of revenue, with durable growth expected as new assets and biosimilars enter the market, especially in APAC.

• Multi-year agreements with originators and biosimilar entrants provide strong visibility and flexibility in meeting customer needs across syringes, cartridges, and dual-chamber formats.

• Only a small percentage of the population currently uses GLP-1s, indicating significant long-term expansion potential over the next 5-15 years.

• Biologics growth accelerated to 30% in Q2, now representing 42% of total revenue, with strong momentum in prefillable syringes, monoclonal antibodies, ADCs, and mRNA applications.

Engineering segment and strategic integration

• Engineering revenue is expected to decline slightly in 2026 but with improved profitability; focus has shifted to core technologies in assembly, packaging, and visual inspection.

• Margin pressures from legacy projects in Denmark are easing as the business refocuses on core strengths, aiming to return to historical gross profit margins of 20%-21%.

• Strategic integration between engineering and BDS segments enables rapid capacity expansion and product innovation, such as transforming idle vial lines into cartridge lines within 12 months.