West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS Securities 8th "New Ideas" Investor Conference (January 2008)
17 slides from West Pharmaceutical Services's conference presentation, Jan 9, 2008
Slide 1: CJS Securities 8th New Ideas Investor Conference
Presenters: 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 CJS Securities 8th “New Ideas” Investor Conference New
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: Key Developments - 2007
Key Developments - 2007 • Daikyo sales and technology agreements extended to 2017 • Raised $161.5 million, 4% convertible junior sub debenture • Announced stock buy-back of up to 1 million shares • Pfizer exited Exubera®* • CMS reimbursement changed for ESA drugs • Tech Group restructuring announced
Slide 4: Strong Sales Growth 2001 - 2007
($ millions) $376 $413 $483 $542 $593 $686 $726 $100 $300 $500 $700 $900 $1,100 2001 2002 2003 2004 2005 2006 2007E Strong Sales Growth 2001 - 2007 $227 Core Business Acquisitions $107
Slide 5: Global Revenue Breakdown
Global Revenue Breakdown Based on 2007 estimate of approx $1 billion South America: $36 million (4%) North America: $508 million (51%) Europe: $424 million (42%) Asia/Pacific: $38 million (4%)
Slide 6: 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% C
Slide 7: Four Strategic Growth Platforms
Four Strategic Growth Platforms Injectable Container Solutions Prefillable Syringe Systems Advanced Injection Systems Safety + Administration Systems
Slide 8: 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
Slide 9: Growth Platform - Injectable Container Solutions
Growth Platform 1 - Injectable Container Solutions West Spectra™ 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
Slide 10: 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 11: 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% C
Slide 12: 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 13: 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 14: Growth Platform - Advanced Injection Systems
West Advanced Injection System Growth Platform 4 - Advanced Injection Systems Staked Needle Prefillable Syringe Plunger Primary Drug Container Lined Seal 1mL Flanged Cartridge Estimated Market Size - $210MM CAGR – 8% Source: Greystone Associates and Company estimates
Slide 15: 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
Slide 16: 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 c
Slide 17: Presenters and Investor Relations Contact
Presenters: 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 CJS Securities 8th “New Ideas” Investor Conference New