West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Wachovia Securities Healthcare Conference (January 2008)
20 slides from West Pharmaceutical Services's conference presentation, Jan 30, 2008
Slide 1: Wachovia Securities Healthcare Conference
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Wachovia Securities Healthcare Conference Boston, MA January 30, 2
Slide 2: Forward-looking statements
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation contain some forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Excha
Slide 3: Company Overview
Founded in 1923 HQ in Lionville, PA Company Overview
Slide 4: Who we are
Who we are World’s premier manufacturer of components and systems for injectable drug delivery Closure systems and prefillable syringe components Components for disposable systems Devices and device sub-assemblies Safety and administration systems Estimated 2007 sales > $1.0 Billion Market cap $1.4
Slide 5: Diverse, Stable Customer Base
Diverse, Stable Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 6: Key Developments - 2007
Key Developments - 2007 Daikyo sales and technology agreements extended to 2017 Raised $161.5 million, 4% convertible junior sub debenture Announced stock buy-back of up to 1 million shares Pfizer exited Exubera ® CMS reimbursement changed for ESA drugs Tech Group restructuring announced China land
Slide 7: Strong Sales Growth
$107 $227 $227 ($ millions) Strong Sales Growth Core Business Acquisitions
Slide 8: Global Revenue Breakdown
Global Revenue Breakdown Based on 2007 estimate of approx $1 billion South America: $36 million (4%) North America: $505 million (50%) Europe: $421 million (42%) Asia/Pacific: $38 million (4%)
Slide 9: Market Dynamics Support Continued Growth
Market Dynamics Support Continued Growth Aging population creates an increasing number of patients with chronic illnesses such as diabetes and cancer Biologic drugs (2006 Market: $56B*) continue to grow Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR pr
Slide 10: Four Strategic Growth Platforms
Advanced Injection Systems Injectable Container Solutions Prefillable Syringe Systems Safety + Administration Systems Four Strategic Growth Platforms
Slide 11: West's Competitive Advantage
West’s Competitive Advantage Unmatched experience/expertise: drug - material interface Ability to source components from multiple locations globally Protected IP: West’s components and systems Regulatory barrier to entry: NDA and ANDA filing must include reference to all packaging/components in cont
Slide 12: Growth Platform – Injectable Container Solutions
Growth Platform 1 – Injectable Container Solutions West FluroTec ® Components Seal - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size – $1.5 BN CAGR – 4% Source: Company estimate for vial systems only West Spectra™ Seals
Slide 13: Growth Platform – Safety and Administration Systems
Growth Platform 2 – Safety and Administration Systems Vial2Bag™ Mix2Vial™ MixJect™ Total Market – $1.5 BN CAGR – 11% Source: Greystone Associates and Company estimate Project Orion
Slide 14: Market Dynamics Support West's Continued Growth
Market Dynamics Support West’s Continued Growth Increasing number of patients with chronic illnesses such as diabetes and cancer Increasing demand for biologics 2006 Market: $56B* Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR projected through 2010)*
Slide 15: Convergence of Primary Containers and Delivery Systems
Convergence of Primary Containers and Delivery Systems Auto Injectors with Cartridges Traditional Injection System Components for Pen System Applications
Slide 16: Growth Platform - Prefillable Syringe Systems
Growth Platform 3 - Prefillable Syringe Systems FluroTec ® Plungers Needle Shields – Tip Caps Daikyo Crystal Zenith ® 1mL LL Prefillable Syringe Daikyo Crystal Zenith ® Staked Needle Syringe Estimated Market Size – $900 MM CAGR – 8% Source: Company estimates
Slide 17: Growth Platform 4 - Advanced Injection Systems
West Advanced Injection System Platform 2 Staked Needle Prefillable Syringe Growth Platform 4 - Advanced Injection Systems Plunger Primary Drug Container Lined Seal Platform 3 1mL Flanged Cartridge Estimated Market Size - $210MM CAGR – 8% Source: Greystone Associates and Company estimates
Slide 18: 2008 Management Operating Priorities
Grow revenues and earnings despite reduced sales of certain products Fundamental growth will offset lost revenue associated with Exubera, ESA drugs, etc. Market segmentation and therapeutic category management Lean operations Sales mix shift toward higher value products Generate Tech Group performan
Slide 19: Summary
Summary Fundamental business drivers remain unchanged Opportunities for growth remain very attractive West’s competitive advantages uniquely position the Company to capitalize on growth drivers in key market segments Solid balance sheet Seasoned, experienced management team - Incentives closely tied
Slide 20: Donald E. Morel, Jr., Ph.D.
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Wachovia Securities Healthcare Conference Boston, MA January 30, 2
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