West Signs Agreement to Sell the Manufacturing and Supply Rights for SmartDose® 3.5mL On-Body Delivery System to AbbVie
Rhea-AI Summary
West (NYSE: WST) agreed to sell all manufacturing and supply rights for the SmartDose 3.5mL On-Body Delivery System and associated facilities to AbbVie (NYSE: ABBV) for $112.5 million at close, subject to working capital and other adjustments.
The definitive agreement is subject to closing conditions and is expected to close in mid-2026. West will continue commercial supply and execute ongoing project commitments prior to close, which may include milestone-based payments before closing.
SmartDose 3.5mL revenues represented approximately 4% of fiscal 2025 revenue. West said it will provide more details when it issues 2026 guidance on its Q4 2025 earnings call in February. The company will continue development and manufacture of other SmartDose products, including the SmartDose 10mL system.
Positive
- Cash consideration of $112.5M at close
- Transaction narrows portfolio to focus on core injectables
- Continued manufacture of other SmartDose products including 10mL
Negative
- SmartDose 3.5mL represented ~4% of FY2025 revenue
- Sale subject to working‑capital adjustments and closing conditions
- Expected close not until mid‑2026, delaying cash realization
News Market Reaction
On the day this news was published, WST declined 0.95%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WST was modestly positive pre-announcement (+0.11%). Peers like BAX (+0.81%), SOLV (+0.36%), and COO (+0.38%) also showed small gains, while RMD was slightly negative (-0.18%). No peers appeared in the momentum scanner, supporting a stock-specific rather than sector-driven setup.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 12 | Investor conference | Neutral | -1.8% | Announcement of participation at J.P. Morgan Healthcare Conference webcast. |
| Dec 10 | Dividend declaration | Neutral | +0.3% | Regular quarterly dividend of $0.22 per share declared with set pay date. |
| Oct 27 | Product launch | Positive | -3.5% | Launch of Synchrony Prefillable Syringe System ahead of January 2026 availability. |
| Oct 24 | Investor conferences | Neutral | -3.2% | Schedule of four investor conference presentations with webcast access. |
| Oct 23 | Earnings results | Positive | +10.9% | Q3 2025 beat with raised 2025 guidance and improved free cash flow. |
Recent history shows a strong positive reaction to Q3 2025 earnings and raised guidance, while product launch and conference announcements saw negative reactions, indicating selective responsiveness to clearly financial catalysts.
Over the last few months, West reported stronger Q3 2025 results on Oct 23, 2025, with higher net sales and raised full-year guidance, which coincided with a +10.92% move. A Synchrony™ Prefillable Syringe System launch on Oct 27, 2025 saw a -3.45% reaction, and multiple investor conference appearances in late 2025 were followed by modest declines. A quarterly dividend declared on Dec 10, 2025 had little price impact. Against this backdrop, the SmartDose® 3.5mL rights sale represents another portfolio-focused business update.
Market Pulse Summary
This announcement details West’s agreement to sell manufacturing and supply rights for the SmartDose® 3.5mL On-Body Delivery System and related facilities to AbbVie for $112.5 million. The product is expected to represent about 4% of fiscal 2025 revenues, while West retains other SmartDose versions, including the 10mL system. Investors may track how 2026 guidance quantifies the impact, progress on milestone-related payments before closing, and growth from remaining delivery platforms.
Key Terms
on-body delivery system technical
AI-generated analysis. Not financial advice.
West is committed to the continued commercial supply of SmartDose® 3.5mL On‑Body Delivery System along with the execution of ongoing critical project execution commitments prior to close, which includes the potential for future project payments on achievement of milestones prior to closing.
"West pioneered the innovation of the on-body delivery device technology for complex injectable medicines, which has improved the lives of people around the world," said Eric M. Green, President, Chief Executive Officer and Chair of the Board. "As part of our portfolio review, we have determined it is best to transition the SmartDose 3.5mL product to AbbVie. This decision aligns with our ongoing commitment to our customer development pipeline and patient-centric approach for large dose on-body delivery devices to drive durable and profitable growth."
SmartDose 3.5mL On-Body Delivery System revenues are anticipated to be approximately 4 percent of revenues in fiscal year 2025. The company expects to provide additional details when it gives 2026 guidance on its fourth quarter 2025 earnings call in February. West will continue to develop and manufacture all other versions of SmartDose, including SmartDose® 10mL On-Body Delivery System, adaptive technology for larger volumes.
About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life-saving and life-enhancing medicines for patients. With over 10,000 team members across 50 sites including 25 manufacturing facilities worldwide, West helps support our customers by delivering over 41 billion components and devices each year.
Headquartered in
All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements within the meaning of federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may include such words as "expected," "anticipated" and other similar terminology. These statements are based on management's current expectations, estimates, and include, but are not limited to, statements in this press release regarding the anticipated timing of closing of the sale of the SmartDose 3.5mL manufacturing and supply rights to AbbVie, the expected proceeds from the transaction, the anticipated revenues from the SmartDose 3.5mL On-Body Delivery System for fiscal year 2025, and other future events. These forward-looking statements are subject to risks, uncertainties and other factors that are in some cases beyond our control. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to: the ability to obtain required regulatory approvals; the satisfaction of closing conditions on a timely basis; and failure to realize the anticipated benefits of the transaction. For a description of certain additional factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended December 31, 2024, including the section captioned "Item 1A, Risk Factors" and other filings with the United States Securities and Exchange Commission, including any updates to the risk factors in the Company's quarterly reports on Form 10-Q and current reports on Form 8-K.
The forward-looking statements included in this communication are made only as of the date hereof. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE West Pharmaceutical Services, Inc.
FAQ
How much is West receiving for SmartDose 3.5mL from AbbVie (WST sale)?
When is the AbbVie acquisition of SmartDose 3.5mL expected to close (WST)?
What revenue impact does the SmartDose 3.5mL sale have on West (NYSE: WST)?
Will West still support SmartDose products after the sale of 3.5mL?
When will West provide financial details related to the SmartDose 3.5mL transaction?
