West Pharmaceutical Services has agreed to sell the manufacturing and supply rights for its SmartDose® 3.5 mL On‑Body Delivery System, along with the associated production facilities, to AbbVie for a total consideration of $112.5 million, subject to working‑capital adjustments. The transaction is expected to close in mid‑2026.
The 3.5 mL line represented roughly 4 % of West’s revenue in fiscal year 2025 and has been described as margin‑dilutive because its high manufacturing costs and limited pricing power erode overall profitability. By divesting this product, West frees capital and operational focus for its high‑margin elastomer and Crystal Zenith components, which drive the majority of its profit‑margin expansion strategy.
AbbVie’s acquisition expands its drug‑delivery device manufacturing footprint. The company plans to invest more than $175 million in the acquired facility and hire about 200 employees, a move that fits within AbbVie’s broader $10 billion U.S. manufacturing investment plan for the next decade.
West will continue to supply other SmartDose versions, notably the 10 mL On‑Body Delivery System, while the 3.5 mL line is fully transitioned to AbbVie. CEO Eric M. Green said the sale was part of a portfolio review that aligns with West’s patient‑centric approach to large‑dose on‑body delivery devices and its commitment to durable, profitable growth.
On the day of the announcement, West’s shares closed down 1.26 % and AbbVie’s shares slipped 0.05 %. Analysts noted that the transaction supports West’s margin‑expansion strategy and provides AbbVie with additional manufacturing capacity and workforce to support its expanding drug‑delivery portfolio.
The sale is expected to improve West’s profitability by removing a margin‑dilutive product line and providing capital that can be redeployed into core, high‑margin businesses. For AbbVie, the acquisition strengthens its manufacturing capabilities and workforce, positioning the company to meet growing demand for drug‑delivery devices in its therapeutic areas.
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