West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Barclays Global Healthcare Conference 2014
25 slides from West Pharmaceutical Services's conference presentation, Mar 13, 2014
Slide 1: West Pharmaceutical Services, Barclays Global Healthcare Conference
1 West Pharmaceutical Services, Inc. Barclays Global Healthcare Conference Miami, FL March 13, 2014
Slide 2: Safe Harbor Statement
2 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 i
Slide 3: West's Story
3 West’s Story Historic foundations for growth Growth drivers Outlook
Slide 4: Partnering with customers from their beginnings
Partnering with our pharmaceutical, device and biotechnology customers from their beginnings, we’ve grown… …to become the preeminent supplier of products used in containing and administering small-volume parenteral drugs
Slide 5: The West Transition
5 The West Transition 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 ’12 2002 $412.8 M* 2013 $1.37 B Kinston recovery Sale of CCI Sale of Drug Delivery Tech Group, Medim
Slide 6: A Diverse, Stable Customer Base
6 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers) Industry-leading market shares in Europe and North America
Slide 7: Business Segments
7 Business Segments 2013 Revenues (millions) Contract manufacturing for: • Rx injection systems • Diagnostics, medical/surgical • Consumer Proprietary products: • Drug reconstitution and fluid transfer • Needle safety •Daikyo Crystal Zenith® products • Drug administration devices • Primary packa
Slide 8: Competitive Advantages
8 Competitive Advantages Pharmaceutical Packaging Category leader in mature end-markets “Designed-in” primary packaging barrier to entry Strong IP base - materials/process/manufacturing technology (HVPs) Global capabilities for global customers Key partnerships – Daikyo Seiko, West Mexico
Slide 9: Injectable Drug Growth: More, better, different
9 Injectable Drug Growth: More, better, different Persistent growth of injectable therapeutics: • Insulins • Biologics and specialty drugs • Orphan drugs • Generics and biosimilars Increasing industry and regulatory standards: • Quality • Safety Changing point-of-care: • Patient focused - Ease
Slide 10: Our Growth Initiatives 2014-2018
10 Our Growth Initiatives 2014-2018 Daikyo Crystal Zenith® is a registered trademark of Daikyo Seiko, Ltd. *Average Selling Price Packaging Systems Delivery Systems High-value products: modest unit growth, increasing ASP* and margin Geographic expansion: China, India sourcing and end-markets O
Slide 11: High-Value Product Sales, Margin Growth
11 High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2009-2013 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2013 sales
Slide 12: Geographic Expansion: Asia-Pacific
12 Geographic Expansion: Asia-Pacific Singapore (existing): 1. High-value Product Focus 2. Asia-Pacific market & special items 3. R&D hub & technical center China IV Plastic (existing): Global supply China Elastomer (existing): China market, Efficiency focus India Metal (2014): 1. Asia-Pacific marke
Slide 13: Our Growth Initiatives 2014-2018
13 Our Growth Initiatives 2014-2018 Daikyo Crystal Zenith® is a registered trademark of Daikyo Seiko, Ltd. *Average Selling Price Packaging Systems Delivery Systems High-value products: modest unit growth, increasing ASP* and margin Geographic expansion: China, India sourcing and end-markets O
Slide 14: Proprietary Product Sales, Margin Growth
Proprietary Product Sales, Margin Growth Pharmaceutical Delivery Systems 2009-2013 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2013 sales SmartDose® Mix2Vial® éris Daikyo Crystal Zenith® 14
Slide 15: Evolving with the Marketplace
15 Evolving with the Marketplace Since 2005, we have expanded our offering by adding innovative technologies and solutions through acquisition, licensing, strategic partnerships and internal development. Acquired The Tech Group Acquired Medimop Administration Systems 2005 Licensed NovaGuard™ Safety
Slide 16: Strategic Focus: Integrating Primary Container and Device Components
16 Strategic Focus: Integrating Primary Container and Device Components Elements of the delivery system Integrated delivery system • CZ® syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • Éris & NovaGuard safety + glass • Molded systems • SmartDose® + CZ® cartridge • ConfiDose
Slide 17: Daikyo CZ Solution with Daikyo FluroTec Barrier Film
17 Daikyo CZ Solution with Daikyo FluroTec® Barrier Film Reduces: • Drug exposure to extractables • Can reduce risk of protein aggregation caused by silicone oil • In-process breakage and product returns caused by broken glass • Risk of delamination and glass-particulate contamination • Associated
Slide 18: Daikyo Crystal Zenith Product Approvals
18 Daikyo Crystal Zenith Product Approvals 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 19: SmartDose Electronic Patch Injector Technology Platform
19 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 C
Slide 20: Long-term Outlook
20 Long-term Outlook No fundamental change in long-term growth strategies and drivers: Revenue outlook: • High-value packaging growth expected to continue • Commercial uptake of proprietary delivery systems products • Geographic expansion Profitability: • Product mix continue to improve • Produc
Slide 21: 2013 Summary Results
21 2013 Summary Results $ millions, except earnings per-share (EPS) data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 24- 25), “Cautionary Statement” (Slide 2) for an explanation and reconciliation of these items. (2) Histo
Slide 22: Take-Away Messages
22 Take-Away Messages Key partner to pharmaceutical, biotech and medical device customers “Sticky” core business: significant barriers to change/entry Well positioned in fast-growing Asian markets Strong balance sheet, operating cash flow Disciplined, experienced, management team Incenti
Slide 23: West Pharmaceutical Services, Inc.
23 West Pharmaceutical Services, Inc.
Slide 24: Non-GAAP Financial Measures
24 Non-GAAP Financial Measures(1) Three Months and Year Ended December 31, 2013 and 2012 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 25), “Cautionary Statement” (Slide 2) for a further explanation and reconciliation of these items. Three-months ended De
Slide 25: Notes to Non-GAAP Financial Measures
25 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see Safe Harbor Statement (slide 2) These presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) ac
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