West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Specialty Pharmaceuticals Conference 2009
31 slides from West Pharmaceutical Services's conference presentation, Jun 2, 2009
Slide 1: UBS Global Specialty Pharmaceuticals 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 UBS Global Specialty Pharmaceuticals Conference June 3, 2009 Londo
Slide 2: Forward Looking Statements
This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management’s beliefs and assumptions, current expectations, estimates and forecast
Slide 3: Who We Are
Who We Are • Founded in 1923 • Global Headquarters near Philadelphia • Market capitalization $1.2 billion • World’s premier manufacturer of components and systems for injectable drug delivery – Closure systems and prefillable syringe components – Components for disposable systems – Devices and devic
Slide 4: West's Competitive Advantage
West’s Competitive Advantage • Global manufacturing footprint • Unmatched experience/expertise: drug - material interface – Global regulatory and technical support • Protected IP: Proprietary materials and technology • Regulatory barrier to entry: US NDA and ANDA filing must include reference to all
Slide 5: Diverse, Stable Customer Base
Diverse, Stable Customer Base
Slide 6: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 7: Overview
Exubera is a registered trademark of Pfizer, Inc. Overview • A challenging year – Exubera, ESA packaging, diagnostic component lost sales impact – Commodity, currency market instability – Global economic downturn • Strong growth in core component sales • Tech restructuring completed • China plant co
Slide 8: Outlook for 2009 and Beyond
Outlook for 2009 and Beyond • Global pharma remains under substantial pressure • Global growth projected at 2.5-5% (down from 5-7%) • North America down 1-2% • Europe 0-1% • Emerging economies 5-7% (India, China, Brazil) • US election and government plans for health care • Pharmaceutical Industry ch
Slide 9: Our Growth Opportunities
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems Development Primary Package Administration Our Growth Opportunities
Slide 10: Market Dynamics Support Future Growth
Autoimmune Disease Vaccines Oncology Diabetes Market Dynamics Support Future Growth • Increasing number of patients with chronic illnesses • Many of these are treated with biologic drugs • Biologic drugs demand ultra- clean delivery systems • Point of care shift: Hospital to specialty clinic to home
Slide 11: 2007's Biotech Blockbusters
Total Total 2007’s 22 Biotech Blockbusters Enbrel (Amgen/Wyeth) Aranesp (Amgen) Remicade (J&J/SP) Rituxan (Roche) Neulasta (Amgen) Erypo/Procrit (J&J) Herceptin (Roche) Epogen (Amgen) Avastin (Roche) Humira (Abbott) Lantus (Sanofi-Aventis) Avonex (Biogen Idec) Neorecormon (Roche) Gardasil (Merck) Re
Slide 12: 17% Increase in Projected Insulin Dependent Diabetics
Millions of insulin dependents worldwide Compare to 246 million diabetics worldwide Year Source: Company estimate 2005-2010 17% Increase in Projected Number For Insulin Dependent Diabetics
Slide 13: Our Growth Strategy
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems • Build market share in multi- component systems for drug administration • Expand proprietary product portfolio
Slide 14: Primary Drug Packaging
West FluroTec ® Components Seal - - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size - $1.5 billion CAGR - - 4% Source: Company estimate for vial systems only West Spectra™ Seals Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd. FluroTec and Crystal Zenith technologies
Slide 15: Core Strategy - Adding Incremental Value per Unit
Uncoated 4432/50 V35 $50 $200 4432/50 S2 FluroTec ® Westar RS $250 4432/50 S2 FluroTec ® Westar RS B2-40 Port Bag $300 4432/50 S2 FluroTec ® Westar ® RS B2-40 (1000 packs) $465 4432/50 Sterile S2 W (RU) Ready Pack (1000 packs) $2,900 RU Ready Pack System (small volume sourcing only) $3,500 $360
Slide 16: West NovaPure
West NovaPure™ • Item-specific subvisible particle specification • Residual moisture specification for lyophilization stoppers • Helps meet Quality by Design initiatives • Designed to mitigate risks associated with drug packaging
Slide 17: Delivering Innovative Solutions
_—— Delivering Innovative Solutions
Slide 18: Our Growth Strategy
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems • Build market share in multi- component systems for drug administration • Expand proprietary product portfolio
Slide 19: Delivery Systems - Key Programs
Vial2Bag™ Mix2Vial ® MixJect ® NovaGuard™ Safety Needle Device ConfiDose ® Auto-injector Daikyo Crystal Zenith ® Delivery Systems - Key Programs
Slide 20: Packaging & Delivery Systems for Large Molecules Key Driver
Packaging & Delivery Systems for Large Molecules Key Driver • Currently all large molecule drugs are delivered by injection • West components are preferred and used for the top selling biotech therapeutics • Used predominantly to treat chronic diseases – Diabetes – Cancer – Auto-immune • Fastest gro
Slide 21: Critical Stability Issues for Biotechnology Drugs
Critical Stability Issues for Biotechnology Drugs • Aggregation – Silicone, tungsten, glue, mfg. processing • Adsorption - vials and syringes – Impacts potency of large molecules • Immunogenicity/Neurogenicity • Polysorbate 20 and – Detergents used for mitigating aggregation – Highly unpredictable •
Slide 22: Daikyo Crystal Zenith vs. Glass
Higher extent of aggregation in glass compared to CZ Daikyo Crystal Zenith Glass Daikyo Crystal Zenith ® vs. Glass (Demonstrated employing a model antibody in solution)
Slide 23: Total Life Cycle Containment
First-in-Human Containers Bulk Containers Inserted Needle Syringes • Stored frozen in Phase • Ideal cleanliness • Low adsorption properties • Ideal for auto-injectors • No tungsten, glue or silicone • Ease of handling Daikyo Crystal Zenith ® and Flurotec ® are registered trademarks of Daikyo Seiko,
Slide 24: Five-Year Forecasted Growth Opportunity
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems $2 billion combined markets for safety, prefilled and autoinjectors: • Unit growth 6-12%, varies depending on se
Slide 25: First Quarter Results
Net Sales $242.4 $270.7 Gross Margin 28.6% 30.8% R&D $4.3 $5.4 SG&A $42.9 $40.1 Operating Profit (Non-GAAP) * $21.9 $37.8 Net Income (Non-GAAP) * $14.1 $24.9 Diluted EPS (Non-GAAP) * $0.42 $0.72 *2009 operating profit, net income and diluted EPS excludes a ($0.01) per share impact of Tech restructur
Slide 26: Asset Management
($M) 3/31/09 12/31/08 3/31/08 Cash $62.7 $87.2 $93.6 Accounts Receivable $137.2 $128.6 $151.9 Days Sales Outstanding (DSO) 50.9 44.8 51.1 Inventory $120.0 $115.7 $119.3 Days Inventory Outstanding (DIO) 44.6 40.3 40.1 Asset Management
Slide 27: Capital Management
($M) 3/31/09 12/31/08 Total Debt $387.9 $386.0 Total Equity $488.6 $487.1 Net Debt to Total Capital 40.0% 38.0% Capital Expenditures: YTD Spending $17.8 Full Year Forecast / Actual $128.7 $131.8 Capital Management
Slide 28: Maintaining Our Long-term Focus
Maintaining Our Long-term Focus • The fundamentals are what matter – Superior quality and service win – The Global Quality Initiative is critical • Margin improvement - lean manufacturing, OEE • Continue investment for the future – Innovation – Capacity and emerging markets – IT – Technology & produ
Slide 29: Summary
Injectable Container Solutions Advanced Injection Systems Prefillable Syringe Systems Safety and Administration Systems Summary • Market leader • Proprietary technology • Regulatory expertise • Customer base • Global footprint • Partnerships – Daikyo – Mexico • New product pipeline • Financial posit
Slide 30: Each
Each and every day, more than 80 million West products are used to enhance the quality of healthcare around the world.
Slide 31: UBS Global Specialty Pharmaceuticals 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 UBS Global Specialty Pharmaceuticals Conference June 3, 2009 Londo
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