Our Strategy

Our strategy for sustainable growth.

Group Strategy

In 2008, the Group defined its strategy in three elements:

1. Organic revenue growth from:

  • New developments in core respiratory business
  • Diversification into adjacent markets and territories
  • Increasing revenue by capturing more of the value chain

2. Investment in activities in adjacent/ complementary technologies/markets

3. Operating leverage from growth, and ongoing cost efficiency

Since then it has realised significant achievement of these goals:

1. Organic Revenue:

  • Launch of Integrated Dose Counter on Teva's QNASL, and the Chiesi NEXThaler. Development and launch of the King Video Laryngoscope
  • Development of two Auto-Injector development programmes, and significant new Auto-Injector IP development from the Innovation team. Securing two Nasal development programmes
  • Securing commercial drug handling on the Nicoventures and one of the Nasal programmes

2. Investment in the Medical House, and Atlas Genetics.

Following the divestment of King Systems, this core strategy is unchanged, though now more tightly focused on the drug delivery and Life Sciences services market. Our strategy is primarily organic growth, to be supplemented with relevant and value enhancing inorganic opportunities as they become available.

3. Operating leverage and cost efficiency:

Bespak margins have grown and the King Systems business was consolidated to improve its operating margins.

Group strategy model

Bespak Strategy

Specific to the Bespak business, its strategy is to operate a mixed model producing both its own proprietary products, and the contract manufacture of customers' products, based on its know-how and regulatory expertise.

In terms of customers, Bespak will sell new products into current and new divisions of existing customers building on its strong relationships, whilst also cultivating relationships with new customers in order to deliver diversified growth.

Bespak will continue to diversify its revenue portfolio by growing its product offering in respiratory and non-respiratory markets. It will also grow by moving up the value chain: from its core expertise of design for manufacture, moulding and assembly through to filling the devices with drug and releasing to the end market via QP (Qualified Person) release.

Our core competences in the high volume, high quality regulated respiratory market are readily transferrable to our chosen adjacent sectors: Auto-Injectors, Nasal, Nicotine Delivery and point-of-care (POC) Diagnostics. Our strategic intent is to build on these strong foundations whilst adding new skills to meet new challenges, including drug handling, final device assembly, pharmaceutical packaging and QP release to the end market.

Diversification strategy

Respiratory

In respiratory, we will continue to increase our share both through the development of new products and through selling into new and developing geographical markets. We will maintain our competitive position by continuing to leverage Continuous Improvement (CI) activities as products move into the mature stage of their product life cycle.

Auto-Injectors

Our strategy for the auto-injector sector is focused on the commercialisation of the existing pipeline in conjunction with the development of further IP and the exploitation of "Innovation on Demand" opportunities through our growing Innovation team based in Cambridge. We will continue to move up the value chain by offering assembly and drug handling and will continue to look for additional, selective acquisitions.

Nasal

Our strategy for the nasal market is focused on the delivery of our existing development programmes plus further exploitation of our growing IP portfolio via a number of "Innovation on Demand" opportunities.

Nicotine Delivery

Our approach to the Nicotine Delivery sector is to successfully industrialise & commercialise the Nicoventures device, and then to increase the value add content, and exploit wider geographic opportunities as the business and market develops.

POC Diagnostics

The POC Diagnostic strategy is focused on the commercialisation of the Atlas device as a first stage penetration of the market. Following a successful outcome to this programme we will leverage our development, manufacturing and regulatory know-how in order to grow our market share, possibly in conjunction with selective acquisitions.

In conclusion, Bespak's strategy is to continue to grow by exploiting its current and emerging competencies, in both existing and adjacent market sectors, in a mixed model of proprietary IP protected products and contract manufacturing, whilst harnessing more of the value chain to include drug handling and final QP release to the market.