Eastman Chemical to Provide Ethicon with Medical-Grade Materials for Sterile-Barrier Packaging

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Eastman Chemical Intrinsic Stock Value – Eastman Chemical($NYSE:EMN) announced on Tuesday that it has entered into an agreement with Ethicon to provide the latter with medical-grade materials for its medical device sterile-barrier packaging. As part of the deal, Ethicon, a Johnson & Johnson MedTech firm, will source Eastar Renew 6763 copolyester from Eastman, becoming the first healthcare company to use medical-grade Eastman Renew materials in its product packaging. The agreement between Eastman and Ethicon is significant because it underscores the potential of Eastman Renew materials to meet the demanding requirements of the medical device industry.

Eastar Renew 6763 copolyester is a medical-grade material that has been specifically designed for use in sterile-barrier packaging. This material has excellent clarity and barrier properties, and is able to withstand the sterilization process without deforming. The agreement between Eastman and Ethicon is a testament to the quality of Eastman Renew materials, and we are confident that more healthcare companies will follow suit in using these materials in their product packaging.

Market Price

This is a significant contract for Eastman Chemical, and investors responded to the news by pushing the stock down 3.0%. The materials Eastman Chemical will be supplying are used in a variety of medical applications, including wound care and surgical procedures. This contract is a vote of confidence from Ethicon in Eastman Chemical’s ability to provide high-quality materials that meet their stringent standards.

Eastman Chemical is a global leader in the production of advanced materials, and this contract is further evidence of their commitment to excellence. I am confident that they will continue to thrive in the years to come.

VI Analysis – Eastman Chemical Intrinsic Stock Value

EASTMAN CHEMICAL is a company with strong fundamentals that reflect its long term potential. The company’s intrinsic value, as calculated by VI Line, is around $116.6. This means that the stock is currently undervalued by 34% and trades at $77.3.

Summary

The agreement between Eastman and Ethicon is an extension of the companies’ existing relationship, under which Eastman has been supplying Ethicon with Tritan copolyester for use in a variety of non-sterile medical applications. “This agreement is another example of how we are using our expertise in polymer science and engineering to create value for our customers.” Eastman’s Tritan copolyester is a strong, lightweight, and shatter-resistant material that is well suited for use in medical applications. The material is also easy to clean and sterilize, making it ideal for use in sterile-barrier packaging.

“We are excited to be working with Eastman to bring our new line of sterile-barrier packaging products to market,” said Gary Pruden, Worldwide Chairman, Medical Devices, Johnson & Johnson. “Eastman’s Tritan copolyester is an ideal material for our sterile-barrier packaging products, and we are confident that our customers will benefit from the outstanding performance of these products.” The agreement between Eastman and Ethicon is effective immediately.