Stevanato Group (STVN)

Stevanato Group is a great way to play the rise of biologics and the numbers support this. Over the last 4 years, biologics grew from 21% to 41% of revenue. This coincides with the strong growth in GLP1 drugs, which account for 19-20% of STVN revenue, but it’s not just GLP1s. 60% of global injectable pipeline in clinical stages are biologics, so we can assume future medication hitting mass production to be predominantly biologics.

STVN benefits from rising volumes, not rising medication cost, so biosimilars and competing products are a tailwind for them. As GLP1 drugs evolve and improve, STVN will continue to benefit. The big threat here is the narrative that oral GLP1 will take share from injectables, but so far this is not happening and I don’t believe it will in the future. Experts also have a consensus that injectables are the superior treatment method (once a week instead of daily intake, higher efficiency and lower side effects) and that oral will expand the TAM rather than cannibalize it.