West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS 2012 Global Life Sciences Conference
31 slides from West Pharmaceutical Services's conference presentation, Sep 19, 2012
Slide 1: West Pharmaceutical Services, Inc. - UBS 2012 Global Life Sciences Conference
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2012 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements inc
Slide 3: West Snapshot
A globally diverse manufacturer of products used primarily in containing and administering small-volume parenteral drugs Strong competitive position Diversified customer base Proprietary technology Global footprint Significant barriers to entry Stability with growth potential Proprietary Products Ge
Slide 4: A Diverse, Stable Customer Base
A Diverse, Stable Customer Base (representative healthcare customers) PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE *
Slide 5: The West Transition
The West Transition Founded in Philadelphia (1923) and listed on NYSE since 1980 Initiated strategic transformation in 2001 to become a leading global supplier of value-added pharmaceutical packaging systems and components * ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 2001 $392 M 2011 $1.2 B Kinston recover
Slide 6: Business Segments
Business Segments $857 $337 2011 Revenues ($ millions) Delivery Systems Contract manufacturing base Multi-material Project management Automated assembly Regulated products Capabilities + IP = proprietary delivery devices Proprietary devices are expected to drive growth Packaging Systems Established
Slide 7: First-Half 2012 Overview
First-Half 2012 Overview Sales Grew 6.3% (10.2% at constant currency) High-value product growth and price were key components Backlog growing, longer-lead times, customer inventory building Adjusted EPS(1) at $1.62 vs. $1.22 prior year Pharmaceutical Packaging and Device markets: Customer’s new prod
Slide 8: Summary Results
Summary Results $ millions, except per-share data These are Non-GAAP measurements. For an explanation and reconciliation of these items, see “Cautionary Statement” (Slide 2) and “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 28-30). *
Slide 9: Selected Factors Expected to Impact Second-Half 2012 and Comparisons
Selected Factors Expected to Impact Second-Half 2012 and Comparisons See “Cautionary Statement” on slide 2. This is not an exclusive list of risks. Stronger US dollar impact on reported sales, profits from international operations vs. first half and prior year Pricing changes vs. prior year smaller
Slide 10: What will drive growth?
Company: Demographics, increasing prevalence of chronic disease, increasing use of biologics to treat those diseases, better access to healthcare What will drive growth? Growth in emerging markets Escalating regulatory and quality demands Adding plants: China, India Expanding Westar® and Envision® c
Slide 11: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% Generics >10% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 Therapeutic Category Growth Drivers *
Slide 12: Packaging Segment Overview
Packaging Segment Overview 2011 Revenue ($ millions) Packaging Systems Market leader Strong recurring revenue base Global manufacturing Steady growth in base Future growth will be driven by: added value per unit sold; geographic expansion; and growth in key therapeutic segments $857 *
Slide 13: Pharmaceutical Packaging Systems
Pharmaceutical Packaging Systems Packaging Components for Small Volume Parenterals Plungers, Tip caps, Needle shields for Glass Syringes Plungers, lined seals for Glass Cartridges for Pens Closure Systems for Glass Vials Primary packaging components (those that touch the drug) are typically propriet
Slide 14: Providing Solutions to a Changing Market
Providing Solutions to a Changing Market *
Slide 15: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems *
Slide 16: Asia-Pacific Region Operations Strategy
Asia-Pacific Region Operations Strategy Singapore: High-value Product Focus A-P market & special items R&D hub & technical center China IV Plastic: Global supply China Elastomer: China Market, Efficiency focus India Elastomers for: Domestic standard products & local support for multi-nationals Stand
Slide 17: Delivery Systems Segment Overview
Delivery Systems Segment Overview $337 Contract manufacturing base Customer owned IP Project management Automated assembly Regulated products Proprietary Product Development West owned IP Multiple use platforms Focus on unmet needs for biologics 2011 Revenue ($ millions) *
Slide 18: Portfolio Expansion to Meet Market Needs
Acquisition of The Tech Group: Acquisition of Medimop: Administration Systems Licensing of NovaGuard™: Safety System Acquisition of PharmaPen: Auto-injector Daikyo CZ Insert Needle License: Prefillable Syringe Systems Acquisition of Plastef: Prefillable Syringe Safety Acquisition of LaModel: Electro
Slide 19: Pharma Industry Drug Life-Cycle Management
Pharma Industry Drug Life-Cycle Management Phase I Phase II Phase III Post-Market Life Cycle Management 8 - 10 years 2 - 3 years 2 - 3 years Regulatory Approval Discovery *
Slide 20: Glass Syringe Risk Areas
Tungsten residue Breakage Silicone oil variability Auto-injector failure Cosmetic defects Particles FDA RECALL Potential Glass Syringe Risk Areas *
Slide 21: Daikyo CZ Solution with Daikyo Flurotec Barrier Film
Daikyo CZ Solution with Daikyo Flurotec® Barrier Film Reduces: drug exposure to extractables risk of protein aggregation caused by silicone oil in the drug product returns and in-process clean-ups caused by broken glass risk of delamination and glass-particulate contamination Consistent piston relea
Slide 22: Daikyo Crystal Zenith Competitive Advantage
Orange color indicates Flurotec® film coverage Complete coverage with inert film on drug contact surfaces Flurotec Film Patent Protection from Daikyo Seiko Trade Secret Molding / Processing Silicone-Free System Daikyo Crystal Zenith Syringe Barrel Custom Formulated Resin exclusive to Daikyo Seiko IP
Slide 23: Products Approved in Daikyo Crystal Zenith
Products Approved in Daikyo Crystal Zenith hyaluronic acid MRI contrast media bone cement 6 Contrast Media 5 MRI 2 Hyaluronic Acid 1 Calcitonin 1 Proton Pump Inhibitor fluconazole oncology anticoagulant 2 oncology 1 acyclovir hyaluronic acid 3 oncology API Container Japan MHLW Europe EMEA US FDA Cal
Slide 24: SmartDose Electronic Patch Injector Technology Platform
SmartDose® Electronic Patch Injector Technology Platform Programmed by PDA or PC Dose may be customized Applied and activated by patient Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs Prefilled cartridge, no need for user filling Based on Daikyo CZ cartrid
Slide 25: Effect of Increasing Proprietary Device Sales
Revenue per-unit Consumer product manufacturing Medical device manufacturing Mix2Vial® CZ vials CZ Syringes Effect of Increasing Proprietary Device Sales Contract Manufacturing Proprietary Devices Products Gross Margin % Auto-injector platform technology Electronic patch injector technology *
Slide 26: Our Long-Term Focus
Our Long-Term Focus Pharmaceutical Packaging Systems Organic growth of 3-5% per year Margin expansion from efficiency, product mix Capital investments target enhanced quality and value Pharmaceutical Delivery Systems Deliver the potential of Daikyo CZ products Stronger mix of healthcare-consumable c
Slide 27: Summary
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems Strong first half Established market leader Stability with growth potential New products well positioned to meet future market needs The financial strength to invest Summary *
Slide 28: Non-GAAP Financial Measures
* Non-GAAP Financial Measures(1) Six Months Ended June 30, 2012 and 2011 (in millions, except per share data) See “Notes to Non-GAAP Financial Measures” (Slides 29-30) and “Cautionary Statement” (Slide 2) for an explanation and reconciliation of these items. As Reported June 30, 2012 Restructuring,
Slide 29: Notes to Non-GAAP Financial Measures
* NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. (continued on following slide) These presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with gen
Slide 30: Notes to Non-GAAP Financial Measures (continued)
* NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. (continued from prior slide) value of one of our product lines no longer exceeded the carrying value of the related assembly equipment and intangible asset. The remaining charge
Slide 31: West Pharmaceutical Services, Inc.
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2012 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
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