How Engine Capital’s Push for Board Changes Could Shape Avantor's (AVTR) Leadership and Cost Strategy

• On August 12, 2025, Engine Capital publicly called for Avantor to either implement deep cost reductions and restructure its management or pursue a sale, recommending a board revamp with new directors specializing in healthcare distribution.
• This activist push comes as Avantor has already reduced its debt by US$1.5 billion over the past 18 months and sold its clinical services unit for US$650 million last year, signaling significant recent efforts to strengthen its financial position.
• We'll explore how the activist call for board and management changes could prompt a reassessment of Avantor's cost structure and leadership direction.

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Avantor Investment Narrative Recap

To be an Avantor shareholder today, you need to believe that the company’s long-term potential in biopharma, innovation, and operational efficiencies outweighs current industry headwinds and margin pressures. The recent activist campaign by Engine Capital may accelerate changes to Avantor’s management and board, but unless it triggers a rapid strategic shift, it may not materially impact the key short-term catalyst: a clear return to organic revenue growth, nor does it immediately change the main risk from ongoing pricing and demand challenges in bioprocessing.

The appointment of Emmanuel Ligner as CEO, effective August 18, 2025, is especially relevant given the activist calls for management overhaul. This leadership transition could influence both the direction of potential cost-cutting initiatives and Avantor’s ability to execute on its multi-year transformation plans, all amid continued margin and revenue headwinds.

By contrast, investors should be aware that…

Read the full narrative on Avantor (it's free!)

Avantor's forecast points to $7.2 billion in revenue and $461.3 million in earnings by 2028. This outlook is based on an annual revenue growth rate of 2.5% and an earnings decrease of $226.1 million from current earnings of $687.4 million.

Uncover how Avantor's forecasts yield a $14.12 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted three fair value estimates for Avantor, ranging from US$14.12 to US$46.76 per share. While opinions vary widely, the prevailing risk of competitive pressures forcing ongoing price concessions could limit upside if margin recovery remains challenged.

Explore 3 other fair value estimates on Avantor - why the stock might be worth just $14.12!

Build Your Own Avantor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avantor research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Avantor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avantor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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