Overview
Shares of Gerresheimer tumbled sharply on Thursday following an announcement that Germany's financial regulator, BaFin, has broadened its review of the medical-products manufacturer's financial reporting. By 09:37 GMT the stock had fallen roughly 14% in Germany. The company is already under pressure after a 42% decline year to date and a larger 61% drop recorded in 2025.
Regulatory expansion and scope
BaFin said it is expanding its review of Gerresheimer's 2024 financial statements to probe a range of potential accounting issues. The expanded review explicitly includes questions about possibly misstated lease liabilities and whether the company failed to recognize impairments in assets held within the Advanced Technologies unit. In addition to widening the 2024 review, the regulator opened a separate audit into Gerresheimer's 2025 half-year (1H25) report.
The new 1H25 audit raises concerns that disclosures around risk may be outdated, that impairment charges could be missing and that bill-and-hold revenue may have been misstated - a revenue recognition practice where sales are recorded before goods are physically delivered to customers.
Market reaction and company position
Market participants reacted quickly to the news, driving the near-term share price drop. Gerresheimer has said it "will continue to cooperate fully with BaFin in the context of the audits in order to clarify the facts transparently." The regulator's probe follows an initial review launched last year into potential premature revenue recognition from certain customer contracts.
Corporate context
The company is concurrently conducting internal checks of its accounting practices, managing a weaker financial outlook and handling recent changes in its leadership team. Former CEO Dietmar Siemssen has left the business, and former CFO Bernd Metzner stepped down earlier. Gerresheimer also postponed publication of its fiscal 2024 (FY24) results, which had been scheduled for February 26, citing the ongoing probes.
Analyst note
"New 1H25 audit (under former mgt) comes amid errors in 1) risk assessment, 2) impairment losses, 3) bill & hold," UBS analysts said in a note.
Implications for stakeholders
The expanded regulatory scrutiny and the delay to the FY24 results create additional uncertainty for investors, customers and counterparties dependent on transparent financial reporting. The company's stated cooperation with BaFin indicates it will engage in the audit processes while internal reviews proceed.
Key points
- BaFin has widened its review of Gerresheimer's 2024 accounts and opened a new audit of the company's 1H25 report.
- The regulator's concerns include misstated lease liabilities, missing impairment charges, outdated risk disclosures and potentially misstated bill-and-hold revenue.
- Gerresheimer has postponed its FY24 results and said it will cooperate fully with BaFin; recent leadership departures have coincided with these developments.
Risks and uncertainties
- Continued regulatory audits may sustain volatility in Gerresheimer's share price and prolong investor uncertainty - impacting the healthcare and medical products sector.
- Potential recognition issues around lease liabilities, impairments and bill-and-hold revenue could lead to revisions of previously reported financial results if substantive errors are confirmed - affecting market trust in reported earnings.
- Postponement of FY24 results and leadership turnover add short-term operational and disclosure risk while internal and external audits proceed.