July 12, 2018 / 7:22 AM / in 3 months

Gerresheimer buys Swiss firm Sensile Medical for up to 350 mln euros

* Will make upfront payment of 175 mln euros

* Maximum price of 350 mln euros depends on meeting milestones

* Narrows year sales guidance range to 1.38-1.4 bln euros

BERLIN, July 12 (Reuters) - German drugs packaging maker Gerresheimer has agreed to buy Swiss firm Sensile Medical for up to 350 million euros ($409 million) to expand in the field of digital drug delivery devices.

Gerresheimer also narrowed its revenue guidance and now expects full-year sales to rise to between 1.38 billion and 1.4 billion euros on expectations of a stronger second half of the year, helping to send its shares 9.4 percent higher.

It had previously guided for revenues to at least match last year’s figure of 1.35 billion or rise to 1.4 billion euros at constant exchange rates.

Gerresheimer will make an upfront payment of 175 million euros to Sensile Medical and could pay a maximum price of 350 million euros depending on certain milestones being reached, it said in a statement.

The German firm said the deal will enable it to offer its customers devices with digital and electronic capabilities to administer drugs.

Sensile Medical makes drug devices for diabetics and patients with heart complaints and Parkinson’s disease and other illnesses and collaborates with pharmaceutical firms such as Sanofi.

It describes itself www.sensile-medical.com as a leader in micro pump technology to administer drugs and work out doses.

Second-quarter revenues fell 2 percent to 332.6 million euros mainly due to a weaker U.S. dollar.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) declined to 71.1 million against 75.8 million in the prior-year quarter.

The company said it had won two new major contracts to make inhalers and prefillable syringes but lost a smaller order for inhalers as a result of restructuring at a Swiss plant.

It said the capital investments needed to fulfil these orders would burden its adjusted EBITDA margin by 1 percentage point in 2019 and 2020. The orders will help increase sales and profit margins by 2 percentage points in 2021 and 2022, it said. ($1 = 0.8562 euros) (Reporting by Caroline Copley Editing by Keith Weir)

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