Gerresheimer Shares Plunge Amid Accounting Turmoil and Asset Sale

Gerresheimer sells profitable Centor Inc. to stabilize finances as BaFin expands its accounting probe, triggering SDAX exit and major share volatility.

The accounting crisis at pharmaceutical packaging specialist Gerresheimer is escalating. In a bid to stabilize its precarious financial position, the company has initiated the sale of its profitable US subsidiary, Centor Inc. This move comes as Germany's financial regulator, BaFin, broadens its probe and shareholder groups prepare legal action against former executives.

Strategic Dilemma: Offloading a Profitable Unit

Facing severe financial strain, Gerresheimer's management has turned to Morgan Stanley to facilitate the sale of Centor Inc., with the transaction targeted for completion this year. This decision presents a significant strategic challenge. The US unit is recognized for generating above-average profit margins, and its divestment is expected to further erode the overall profitability of the group.

Compounding the situation, the company is required to record non-cash impairment charges ranging from €220 million to €240 million for the 2025 fiscal year. These write-downs primarily relate to technology projects at Sensile Medical AG and a US glass plant scheduled for closure by the end of 2026.

Regulatory Scrutiny Intensifies and Index Exit Looms

BaFin has significantly expanded its examination of the company's financial statements. Initially focused on prematurely recognized revenues, the investigation now encompasses the accounting of €65.5 million in lease liabilities and capitalized development costs. Authorities have expressed particular concern over the risk assessment related to the acquisition of Bormioli Pharma, which was still classified as low in the 2025 half-year report.

Due to ongoing audits by two separate accounting firms, Gerresheimer has postponed the publication of its 2025 annual figures until approximately June 2026. This delay will trigger the company's automatic removal from the SDAX index. The exclusion forces index-tracking funds to divest their holdings, creating additional selling pressure on the market.

Wild Price Swings Attract Contrarian Investors

The torrent of negative developments has fueled extreme volatility in the company's share price. After suffering heavy losses in preceding sessions, the stock surged a remarkable 17.77% this past Friday, closing at €20.94. Despite this rebound, the shares have lost nearly 73% of their value over a twelve-month period.

In a notable shift, some institutional investors, including the CastleKnight Master Fund and Deka Investment, are establishing new positions at current price levels. The pivotal moment for these investments will be June 2026. Only with the delivery of the audited financial statements will the full extent of the accounting issues and the company's remaining financial flexibility become clear, providing a firm foundation for future valuation.