West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS 21st Global Healthcare Services Conference (February 2011)
32 slides from West Pharmaceutical Services's conference presentation, Feb 8, 2011
Slide 1: West Pharmaceutical Services Overview
WEST PHARMACEUTICAL SERVICES OVERVIEW Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com UBS 21 st Global Healthcare Services Conference New York, NY February 8, 2011
Slide 2: Safe Harbor Statement
This presentation contains “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995, that are based on management’s beliefs and assumptions, current expectations, estimates and forecasts. Statements that are not historical facts, including stateme
Slide 3: Globally diversified manufacturer of healthcare and consumer products
West is a globally diversified manufacturer of products consumed in the healthcare and consumer markets. Every day over 80 million components manufactured by West, and our partner Daikyo, are used to enhance the quality of healthcare worldwide.
Slide 4: A Diverse, Stable Customer Base
Pharmaceutical/Biotech Generic Medical Device A Diverse, Stable Customer Base
Slide 5: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 6: 2010 Segment Reorganization
Packaging Systems Delivery Systems Development Primary Package Administration 2010 Segment Reorganization • Established leadership • High market share • Stable growth rate • Proprietary devices • Contract manufacturing • High projected growth rate
Slide 7: Pharmaceutical Packaging Systems
Pharmaceutical Packaging Systems West MixJect ® and Vial2Bag ® Prefilled Glass Cartridge and Pen Glass Vials and Syringes
Slide 8: Delivery Systems
Delivery Systems West ConfiDose ® Auto-injector System West Electronic Patch-injector Daikyo Crystal Zenith ® is a registered trademark of Daikyo, Seiko, Ltd.
Slide 9: 2010 Issues
2010 Issues • General Operating Challenges: – Pharma M&A continued – Impact of healthcare reform uncertainty – Currency volatility; commodity price fluctuations – Changes in customer order patterns and inventory policies – Operations restructuring announced in Q4 – Non-recurring 2009 H1N1 Sales • No
Slide 10: 2011 Market Trends
2011 Market Trends • Asymmetric global economic recovery – Europe, US, Japan remain sluggish – China, India, Brazil stronger – Continuing Fx, commodity price volatility • More demanding regulatory environment – Bydureon – Benlysta – Changes to approved indications (Avastin) • Broader trends in Pharm
Slide 11: What will Drive Future Growth?
• Pharmaceutical Packaging Segment – Demographics and increasing prevalence of chronic disease – Biologics – Growth in Emerging Markets – Increased access to Healthcare – Escalating quality expectations: “Zero Defects” • Delivery Systems Segment – Demand for combination products that promote safety,
Slide 12: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 Therapeutic Category Growth Drivers
Slide 13: Growth Strategy
• Packaging Systems Segment – Grow incremental value per unit – Geographic expansion - capacity investments in Asia – Improved operating efficiency: lean operations – Strategic acquisitions and partnerships • Delivery Systems Segment – Commercialize CZ opportunities – Develop new platform opportunit
Slide 14: Value Proposition
Value Proposition Proprietary Products Revenue and Margin Opportunity Disposable Device Components Westar ® RS Mix2Vial ® Westar ® RU Standard Components Consumer Products Packaging Delivery
Slide 15: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 16: Drivers for Pharma Industry Life Cycle Management
Drivers for Pharma Industry Life Cycle Management • To maximize the value of the drug development program – Extend the value of the molecule as an asset • Delivery systems as drug formulation life cycle management – Generate more revenue per dose • To expand or retain market share in a competitive e
Slide 17: Pharma Industry Drug Life Cycle Management
Phase I Phase II Phase III Post-Market Life Cycle Management Pharma Industry Drug Life Cycle Management 8 - 10 years 2 - 3 years 2 - 3 years Regulatory Approval Discovery
Slide 18: Ready Pack System
Ready Pack ™ System Utilizes West’s proprietary FluroTec ® technology FluroTec ® technology is licensed from Daikyo Seiko, Ltd.
Slide 19: RU Vials
CZ ® RU Vials RU Seals Glass NovaPure ™ Utilizes West’s proprietary FluroTec ® technology Daikyo Resin CZ ® Utilizes Daikyo’s proprietary Crystal Zenith technology FluroTec ® technology is licensed from Daikyo Seiko, Ltd. Daikyo Crystal Zenith ® is a registered trademark of Daikyo, Seiko, Ltd.
Slide 20: Mix2Vial
Mix2Vial ® Utilizes Medimop’s proprietary technologies Vial Adapters Utilizes Medimop’s proprietary technologies Ready Pack ™ System Utilizes West’s proprietary FluroTec ® technology FluroTec ® technology is licensed from Daikyo Seiko, Ltd.
Slide 21: Luer Lock Glass Syringe
Luer Lock Glass Syringe PFS Plungers Utilizes West’s proprietary FluroTec ® technology Westar ® RU Plungers in Port Bag Utilizes West’s proprietary FluroTec ® technology RU CZ ® Insert Needle Syringe Utilizes Daikyo’s proprietary Crystal Zenith® technology FluroTec ® technology is licensed from Daik
Slide 22: Syringe with NovaGuard
Syringe with NovaGuard ™ Passive Safety Needle Utilizes West’s proprietary technology ConfiDose ™ Auto Injector Utilizes West’s proprietary technology
Slide 23: Concerns With Glass Syringes
Concerns With Glass Syringes • Interaction with sensitive biologics • Protein aggregation (silicone oil) • Residual chemicals (tungsten, glue) • Glass flakes • Breakage • In process • Within auto-injector systems • Recent FDA recalls • Dimensional variation • Breakage in auto-injector systems • Desi
Slide 24: Glass syringe and vial recalls
Epogen Amgen *September 24, 2010 *Glass flakes sana ots Methotrexate Glucagen Novo Sandoz *October 28, 2010 November 1 2010 +Broken/cracked vials *Glass flakes That (iar Enbrel Sureclick Amgen sJanuary 18,2010 *Broken/cracked syringes
Slide 25: Electronic Patch Injector System
Electronic Patch Injector System • Controlled, subcutaneous, micro- infusion delivery of high volumes and high viscosity drugs • Prefilled cartridge, no need for user filling • Based on Daikyo CZ cartridge • Compact • Hidden needle for safety • Single push-button operation • Fully programmable
Slide 26: Prototype Electronic Patch Injector Operation
Programmed by PDA or PC Dose may be customized Attached and activated by patient Prototype Electronic Patch Injector Operation
Slide 27: Custom Delivery Device Utilizing Daikyo CZ Resin
Custom Delivery Device Utilizing Daikyo CZ ® Resin Utilizes Daikyo’s proprietary Crystal Zenith technology Daikyo Crystal Zenith ® is a registered trademark of Daikyo, Seiko, Ltd.
Slide 28: West's Strategy Drives Revenue Growth in Excess of Unit Growth
General trend for level of device features and functionality West’s Strategy Drives Revenue Growth in Excess of Unit Growth Lyo Mixing Station Launched 1998 Lyo Vial Adapter Launched in 2003 Prefilled Syringe Launched in 2004 US Sales by Device for 2007* (One year after Autoinjector launch) * Data s
Slide 29: Long-Term Growth Opportunity
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems Long-Term Growth Opportunity Strategic Planning Goals: • Projected 2014 sales of $0.6 billion • Projected 2014 Operating margin: > 20% $1.5 billion market for components with unit grow
Slide 30: Our Long-Term Focus
Our Long-Term Focus • Pharmaceutical Packaging Systems – Organic growth (on average) of 3-5% per year – Margin expansion through operating efficiency, product mix – Capital investments targeted at enhanced quality and value • Pharmaceutical Delivery Systems – Deliver the potential of Daikyo CZ produ
Slide 31: Summary
Summary • Well positioned – Substantial market share – Proprietary technology – Diversified customer base – Global footprint • Stability with growth potential – Strength in new product pipeline – Preferred products for biologics • The financial strength to invest – Reliable operating cash flow – Bal
Slide 32: West Pharmaceutical Services
WEST PHARMACEUTICAL SERVICES Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com
West Pharmaceutical Services — UBS 21st Global Healthcare Services Conference (February 2011) on 6ix