Gerresheimer’s Fragile Rally: New Technology Partnership Masks Deep Accounting Wounds

Gerresheimer partners with Milliken on moisture barrier tech but faces accounting probes, Centor sale, and shareholder lawsuits as stock remains down 56% YoY.

Gerresheimer is heading to the Interpack trade fair in Düsseldorf with a fresh collaboration in its pocket, but the pharmaceutical packaging group’s financial calendar remains a minefield. The company unveiled a partnership with US specialty chemicals firm Milliken & Company, centered on the LeneX™ UltraGuard® additive system, which promises to improve moisture barriers in HDPE packaging by up to 40 percent — a critical feature for humidity-sensitive drugs. Bormioli Pharma, a Gerresheimer subsidiary, has already deployed the technology for a global pharmaceutical client.

Yet for all the operational momentum, the balance sheet continues to cast a long shadow. The stock has staged a remarkable recovery from its 52-week low of €15.57, now trading at €26.06 — a 67 percent surge from the February trough. On a 12-month basis, however, the shares remain down more than 56 percent, and the rally’s foundations are anything but solid.

Centor Sale and Factory Closure Reshape the Business

The company is pressing ahead with the divestiture of its US subsidiary Centor Inc., which specializes in packaging systems for prescription drugs and generates above-average margins. Morgan Stanley has been mandated as advisor, and a double-digit number of potential buyers are already in the process. Gerresheimer aims to close the transaction this year. Centor’s book value stands at €292 million — a sale would provide balance sheet relief but further dent profitability.

Morgan Stanley’s dual role has drawn scrutiny. The investment bank is advising on the sale while simultaneously reducing its own stake in Gerresheimer, trimming its holding to 4.74 percent at the end of April. Market observers have flagged a clear conflict of interest.

Meanwhile, the closure of the Chicago Heights glass plant is proceeding. Some 172 employees are affected, with the separation date set for September 30. Production will shift to facilities in Italy and India.

Regulatory Heat Intensifies on Multiple Fronts

The accounting scandal that erupted last year continues to widen. The audit oversight body APAS has launched an investigation into KPMG, which had issued an unqualified audit opinion for the 2024 financial statements despite systematic revenue recognition errors.

The BaFin is expanding its probe, focusing on incorrect useful-life assumptions and unrecognized impairments in the Advanced Technologies segment — involving nearly €200 million. Leasing liabilities of around €65.5 million are also under review.

Shareholder resistance is crystallizing. The DSW investor protection association is preparing legal action against former CEOs Dietmar Siemssen and Bernd Metzner. An external expert report will clarify responsibilities, and a litigation funder is already on standby, according to DSW managing director Marc Tüngler.

The Audited Accounts Hold the Key

The absence of audited 2025 financial statements has paralyzed Gerresheimer’s reporting calendar. The company postponed its first-quarter results and annual general meeting, with new dates still pending. The audited accounts are now expected in June 2026, followed by the half-year report on July 14.

For the current year, management forecasts revenue of €2.3 billion to €2.4 billion and an adjusted EBITDA margin of 18 to 19 percent. These targets are explicitly conditional on a positive outcome from the BaFin review.

The stock’s recent rally — up nearly 38 percent over the past month and now trading above its 50-day moving average — has attracted bargain hunters. But the recovery remains precarious. While Deka Investment has been adding to its position, short sellers continue to bet on further declines. The SDAX index expulsion in April forced index funds into unlimited selling.

June will be decisive. If Gerresheimer delivers the audited accounts as promised, investors will finally have a reliable data foundation for the first time in months. Clean numbers could give the current rally genuine legs. Any new accounting gaps, however, would likely bring the recovery to an abrupt halt.