Primary Packaging Space on HOLD: GXI D/G

Research evidence excerpt

Primary Packaging Space on HOLD: GXI D/G

EPS by c.1%, increasing PT to €17.3, Retain HOLD.

GXI Results Timing Slippage Creates ST Pressure: Despite the recent share price

appreciation, and the support from the board and creditors, we are cautious on GXI, with

execution risk around the Bormioli Pharma acquisition representing a persistent overhang. The

transaction was positioned as strategically and financially accretive, recent operational delays

in ramping capacity across the broader portfolio highlight the challenges in delivering on these

targets. We see a risk that the realisation of synergies is slower and hence more costly than

initially envisaged, rendering the acquisition dilutive to the valuation multiple, particularly if end-

market demand remains subdued. Downgrade to HOLD PT €26.8.

Injectables at Scale, GXI/1SXP R-X: As seen in our Global Packaging Note, injectable

approvals remain structurally supportive for primary packaging, with ~75–80% being

biologics. Ongoing product innovation continues to drive increasing formulation and storage

complexity, favouring higher-specification containers. However, following the post-CY23

approval surge, approval numbers have normalised, shifting investment focus away from

approval-led volume growth toward mix, format migration, and operational constraints. Christopher Richardson, ACA * | Equity

Analyst

The data shows a clear migration from vials toward pre-filled syringes and, by extension, +44 (0)20 7029 8675 | chris.richardson@jefferies.com

cartridges. This dynamic is supportive for STVN and 1SXP, as the shift from vials to cartridges James Vane-Tempest * | Equity Analyst

delivers a favourable mix effect at lower unit volumes as demand shifts from core vials to 44 (0) 20 7029 8275 | jvane-tempest@jefferies.com