The contract, details of which are being kept confidential, will see the Consort Medical division create the device on behalf of an unnamed ‘major pharmaceutical’ company, which aims to bring it to market in 2015.
Bespak development director Nick Higgins told in-Pharmatechnologist.com the deal, which covers prototype development and production, is part of an effort to expand beyond the UK firm’s core metered dose and dry powder inhaler businesses.
“Our strategy is to become more broadly involved in the drug delivery technology market,” Higgins explained, adding that the firm would also seek contracts based on an occular delivery device platform it has developed.
He also said that Bespak aims to expand the autoinjector device business it gained when it bought The Medical Company in 2009.
This echoed the comments of company CEO Jon Glenn who said: “With programmes in autoinjectors, Point of Care diagnostics and now nasal applications, Bespak is developing a broad suite of products in new growth markets, de-risking the portfolio.”
Analyst response
Jefferies & Co equity analyst Stephan Gasteyger agreed with Higgins' assessment of the new deal, suggesting in a note to investors that it "confirms Consort's strategy in exploring more opportunities in drug delivery such as nasal or ocular administration, as discussed during the company's meeting in June.”
Gasteyger also described Bespak’s parent company as “one of the most attractive stocks in our sector.”
This was reiterated in a note issued by Gasteyer's colleague Ingeborg Øie from Jefferies International who said Concert is “on track to expand [its] drug delivery franchise and to improve [its] growth profile.”
Lala Gregorek from Edison Investment Research was similarly positive suggesting the deal “further diversifies Consort’s portfolio and leverages its core design, high and high volume precision manufacturing capabilities in a new medical device area.”
Gregorek cited Consort’s innovation centre as a key factor in the nasal device contract and predicted that the facility would be instrumental in further diversifying the company’s revenue base.
These comments, coupled with the ‘strong start’ Consort has made in its respiratory, valve and device services segments this year, suggest the firm is on track to regained the ground lost with the failure of Pfizer’s inhaled insulin drug Exubera in 2007.