West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Jefferies 2010 Global Life Sciences Conference
24 slides from West Pharmaceutical Services's conference presentation, Jun 8, 2010
Slide 1: Jefferies 2010 Global Life Sciences Conference
Donald E. Morel 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 Jefferies 2010 Global Life Sciences Conference June 9, 2010 NYSE: WST westphar
Slide 2: Safe Harbor Statement
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: Corporate Profile
Devices Proprietary Products Corporate Profile • For more than eighty years, a global leader in the development and manufacture of components and systems for injectable drug delivery – Vial closure systems – Prefillable syringe components – Components for diagnostics – Devices and device sub- assemb
Slide 4: West Pharmaceutical Services Today
West Pharmaceutical Services Today ● 32 plants in 10 countries ● 34 sales offices ● 7 technical centers 6,000 employees worldwide
Slide 5: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 6: First Quarter 2010 Results
$ millions, except per share data 2010 2009 Net Sales $274.7 $242.4 Gross Margin 30% 29% Research & Development $5.4 $4.3 Selling, General & Administrative Exp. $46.6 $42.9 Net Income $19.8 $15.4 Diluted EPS - GAAP $0.57 $0.46 Diluted EPS - Non-GAAP $0.58 $0.42 First Quarter 2010 Results First quart
Slide 7: Consolidated First Quarter 2010 Operating Results
Consolidated First Quarter 2010 Operating Results ($ millions) • Ex-Currency, Growth was: $ 10.0 Gross Profit (14.4%) $ 6.0 Adjusted Operating Profit (27.4%) • Currency translation added: $ 9.8 Revenue $ 2.9 Gross Profit $ 1.6 Operating Profit • Comparative result drivers: – Favorable volume and mix
Slide 8: Challenging Business Environment
• Global economic conditions unsettled, however • Global pharmaceutical revenue growth projected to be 4-6% (per IMS) on modest unit growth • North America growth projected at 4.5 - 5.5% • Europe growth moderate 2-4% • Emerging economies should grow > 10% (India, China, Brazil) • Managing through: –
Slide 9: 2010 Priorities
2010 Priorities • Establishing the new organization • Evolution of a global, cross-business unit selling model • Crystal Zenith ® syringe system • The Global Quality Initiative
Slide 10: Business Unit Re-alignment
Pharmaceutical Packaging Systems (How drugs are contained) Primary Container Solutions Pharmaceutical Delivery Systems (How drugs are administered) Administration Systems Business Unit Re-alignment • Safety systems (NovaGuard, éris) • Reconstitution systems - Medimop • CZ prefillable syringe systems
Slide 11: Consolidated 2014 Planning Objectives
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems Consolidated 2014 Planning Objectives Five-Year Growth Opportunity $2 billion combined markets for safety, prefilled and auto-injectors, with unit growth 6-12%, depending on product an
Slide 12: Long Term Business Drivers
West supplies sophisticated packaging systems for the top 20 biologic drugs (by sales) currently on the market. Long Term Business Drivers • Demographics • Growth in Biologics & Vaccines • Requirement for easy, safe, accurate dosing • Combination product growth • Generic growth • Increasing global a
Slide 13: Therapeutic Category Growth Expectations
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 Expectations
Slide 14: Packaging Systems Growth Strategy
West’s Competitive Advantages: Unmatched expertise in drug - material interactions Market leader in packaging for biologics Protected IP: Proprietary materials and processing technology - Drug Master File (DMF) 1546 Regulatory barriers to entry: US NDAs and ANDAs require proof of stability Global ma
Slide 15: Revenue and Margin Opportunity
Revenue and Margin Opportunity Disposable Device Components Standard Components Consumer Products Value Proposition PROPRIETARY PRODUCTS Disposable Device Components Westar® RS Mix2Vial ® NovaGuard ™ éris ™ Westar® RU Standard Components Consumer Products Packaging Delivery
Slide 16: High-Value Products Drive Growth
s High-Value Products Drive Growth Westar ® RS State of the art ready-to-sterilize elastomer closure Westar ® RU State of the art ready-to-use syringe plungers and closures Envision ™ Technically advanced, automated vision inspection system NovaPure ™ Unrivaled quality….by design
Slide 17: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 18: Delivery Systems Growth Strategy
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems Delivery Systems Growth Strategy • Concentrate on systems for unmet market needs • Build market share in multi- component systems for drug administration utilizing Daikyo CZ as a platf
Slide 19: West Solutions to Biopharma Lifecycle Management
CZ Syringe + ConfiDose ® West Solutions to Biopharma Lifecycle Management $1,000,000 Components $55,000,000
Slide 20: Pharmaceutical Delivery Systems
Pharmaceutical Delivery Systems Key Programs Vial2Bag™ Mix2Vial ® MixJect ® NovaGuard ™ Safety Needle Device (luer-lock syringe) ConfiDose ® Auto-injector Daikyo Crystal Zenith ® éris ™ Safety Needle Device (fixed-needle syringe)
Slide 21: Daikyo Crystal Zenith Insert Needle Syringe
Daikyo Crystal Zenith ® Insert Needle Syringe Drug and Pharma Company Benefits • Silicone oil free • Tungsten free • Glue free • Lower dead space • Reduced risk: breakage, waste, recall Auto-Injector Benefits • Consistent break loose and glide forces • Break resistant • Tight dimensional tolerances
Slide 22: Our Long Term Focus
Our Long Term Focus • Pharmaceutical Packaging Systems – Organic growth (on average) of 3-5% per year – Margin expansion through improved operating efficiency, product mix – Capital investments targeted at enhanced quality and value • Pharmaceutical Delivery Systems – Deliver the potential of Daikyo
Slide 23: Summary
Summary • Well positioned – Substantial market share – Proprietary technology – Diversified customer base – Global footprint • Significant Growth Potential – Strength in new product pipeline – Preferred products for biologics • The financial strength to invest – Reliable operating cash flow – Balanc
Slide 24: Donald E. Morel
Donald E. Morel 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 Jefferies 2010 Global Life Sciences Conference June 9, 2010 NYSE: WST westphar
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