Embecta slashed its U.S. forecast after losing share at a major retailer and facing softer insulin pen demand amid pricing challenges.
Embecta (NASDAQ:EMBC) lowered its U.S. outlook following a difficult quarter marked by share loss at a key retailer, weaker insulin pen prescriptions, and inventory adjustments. CEO Devdatt Kurdikar cited price pressure as the primary driver of the retailer loss, though competition remained stable.
The company is assessing whether the softness is temporary or structural, with potential headwinds from GLP-1 drug affordability, insurance subsidy changes, and retail channel shifts. Some patients may be shifting to lower-cost cash-pay or online options rather than discontinuing insulin use.
Despite the setback, Embecta expects $100 million in free cash flow this year and plans to use it for debt reduction and share buybacks. The company is diversifying through new devices, a growing GLP-1 business-to-business channel, and the pending Owen Mumford acquisition.