Back to top

Image: Bigstock

Corning (GLW) Expands Vial Manufacturing With New India Unit

Read MoreHide Full Article

Corning Incorporated (GLW - Free Report) has inked a joint venture agreement with SGD Pharma to develop a new glass tubing facility in India. The collaboration is likely to expand pharmaceutical manufacturing capability in the subcontinent to facilitate faster and more efficient delivery of vital medicines. In addition, the collaboration will help SGD Pharma to adopt Corning’s Velocity Vial technology platform for the seamless transition to improved drug filling quality and performance standards.

Leveraging proprietary technology, Corning’s Velocity Vials – borosilicate vials with patented uniform coating – improve manufacturing efficiency and lower production costs. Compared to traditional borosilicate packaging, Velocity Vials offer a 20-50% improvement in efficiency, up to a 96% reduction in glass particulates and a 3x reduction in the likelihood of damage that leads to cracks and breaks.

The Velocity Vial technology platform offers easy access to pharma and biotech companies into Corning’s game-changing pharmaceutical packaging technology. It helps them enhance vial quality, improve filling-line productivity and accelerate the global delivery of injectable medicine. On the other hand, strategic partnerships with pharma firms enable Corning to extend its manufacturing footprint, localize its supply chains and support the purchase of Velocity Vials through a network of selling partners.

SGD Pharma is the latest to join a growing network of leading pharma manufacturers adopting Corning’s cutting-edge coating technology. The manufacturing of Velocity Vials at SGD Pharma’s facility in Vemula, India, is expected to begin in 2024, while pharmaceutical tubing production is likely to commence in 2025.

Notwithstanding challenging macroeconomic conditions, Corning expects to witness 6-8% compound annual sales growth and 12-15% compound annual earnings per share growth through 2023 while investing $10-$12 billion in research, development & engineering, capital, and mergers and acquisitions. It plans to expand its operating margin and return on invested capital and deliver $8-$10 billion to shareholders, including an annual dividend per share increase of at least 10%. To achieve its goals, the company expects to add an incremental $3-$4 billion in annual sales and improve profitability by the end of 2023.

The stock has lost 7.5% over the past year against the industry’s rise of 16.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Corning currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Picks

InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%. It has a long-term earnings growth expectation of 13.9%.

It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.

Akamai Technologies, Inc. (AKAM - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%.

Akamai is a global provider of a content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.

Turtle Beach Corporation (HEAR - Free Report) , carrying a Zacks Rank #2, is another key pick. It develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices under the Turtle Beach brand.

Turtle Beach is well positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing. It has a long-term earnings growth expectation of 16%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in