Sartorius Stedim

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Sartorius Stedim – facilitating complex drug development

Sartorius Stedim is a leading global provider of innovative equipment for pharmaceutical and biotechnology industries, facilitating drug development and manufacturing processes.

Their comprehensive range of products and services covers the entire drug development journey, from conception to delivery. 

By 2050, 22% of the global population will be over 60.* These demographic trends mean we face a growing healthcare cost challenge – and this is driving the need for drug innovation and development efficiencies to meet future demand. 

This is exacerbated by, what we classify as “21st century diseases” in our thematic framework. This theme covers the rise in lifestyle-related diseases like obesity and type 2 diabetes, those from living longer (Alzheimer’s and dementia) or a combination of both, leading to an increased prominence of cancers. 

The average development cost of a single drug has now reached an astronomical $2.3 billion the result of increased regulation and the sheer complexity of drugs. 

Personalised treatment – playing a vital role

Much of this spend is focused in exciting new areas that we call “Bespoke Healthcare”.  This includes new treatments that can be personalised, like gene-therapies and biopharmaceuticals.

Biopharmaceuticals only bind to very specific cell receptors so are much more targeted than other drugs which can enhance efficacy of drug deployment and reduce negative side effects. They open up new treatment options for patients with severe or rare diseases and are particularly promising candidates in the fight against cancer.  They have been growing in importance, so much so that in 2020 six of the ten bestselling drugs worldwide were biologics (Biopharmaceuticals)*.

So, in an era where precision and efficiency are crucial in healthcare, Sartorius Stedim plays a vital role. The company’s solutions help pharmaceutical companies to bring life-saving medications to market faster, safer, and more sustainably.

Lowering costs and reducing waste

Key to Sartorius Stedim’s offerings is single-use technology - this can streamline manufacturing, lower cost, reduce contamination risks, and enhances operational flexibility. Although single-use, it actually improves alignment with sustainability goals by reducing waste – the equipment uses less energy and requires less cleaning – using 75% less water in some cases than alternative methods.**

And because the areas Sartorius Stedim cover are typically considered “mission critical” regulated workflows, their customers tend not to switch between competitors, which contributes to its strong pricing power.

Innovating and serving the entire market

Sartorius Stedim serves the entire industry, so is well-positioned to benefit from the growth potential of the entire end market, which we estimate to be around 12% per year. It avoids, however, direct exposure to the regulatory and pipeline risks that pharmaceutical companies face when developing new drugs today.

Our fundamental analysis forecasts strong revenue and earnings growth over the next five years. Additionally, we judge that the recent acquisition of PolyPlus, an advanced biologic cell and gene therapy producer, will help to accelerate growth potential over the long term.

With a strong legacy of expertise and advanced innovation, Sartorius Stedim has created a niche at the forefront of pharmaceutical manufacturing - and is helping to shape the future of healthcare globally. And that is a reason why it’s a high-conviction holding in Martin Currie Global Portfolio Trust.

* Source: World Health Organisation, October 2022

** Source: Sartorius Stedim, Insight, June 2024