West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Jefferies 2014 Global Healthcare Conference

27 slides from West Pharmaceutical Services's conference presentation, Jun 2, 2014

  1. Slide 1: West Pharmaceutical Services, Inc. Jefferies 2014 Global Healthcare Conference

    1 West Pharmaceutical Services, Inc. Jefferies 2014 Global Healthcare Conference June 2, 2014

  2. 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

  3. Slide 3: Today's Presentation

    3 Today’s Presentation  West: Long-established, still advancing  Growing Packaging Systems franchise • Market growth drivers • Competitive advantages • High-value component products  Evolving Delivery Systems businesses • Manufacturer of complex devices • Developing proprietary portfolio • Leadin

  4. Slide 4: Partnering with our pharmaceutical, device and biotechnology customers

    4 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

  5. 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

  6. Slide 6: We are Proud to Serve Our Customers

    6 PHARMACEUTICAL / BIOTECHNOLOGY We are Proud to Serve Our Customers GENERIC MEDICAL DEVICE Industry-leading market shares in Europe and North America

  7. 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

  8. 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

  9. Slide 9: Injectable Drug Growth: More, better, different

    9 Injectable Drug Growth: More, better, different  Persistent growth of injectable therapeutics  Increasing industry and regulatory standards: • Quality • Safety  Changing point-of-care: • Patient focused - Ease of use • Needle safety  Higher value per Rx and course of therapy  Competitive end-

  10. Slide 10: Global Pharmaceutical Market Trends

    10 Key Therapy Areas account for 70% of total Biologics Market Global Pharmaceutical Market Trends Insulins 18% Anti-TNF 18% Oncology (mAb) 14% EPO 9% MS 9% Others 32% Market Intelligence

  11. Slide 11: A Trusted Partner

    11 A Trusted Partner West and Daikyo Components The Top 50 Pharma and Biotech Companies rely on in the world • The top 35 injectable biologics rely on West and Daikyo components • > 130 million needle safety systems annually • > 100 million components and assemblies for pens and auto-injectors annua

  12. Slide 12: Our Growth Initiatives 2014-2018

    12 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

  13. Slide 13: High-Value Product Sales, Margin Growth

    13 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

  14. Slide 14: Our Growth Initiatives 2014-2018

    14 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

  15. Slide 15: 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® 15

  16. 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

  17. Slide 17: Advantages of CZ Syringes

    17 Design Flexibility High flexibility for alternate / complex shapes Novel designs available to reduce device size No Glass Breakage No loss of high-value product during manufacture/transport Improves auto-injector functionality — Minimized extractables and leachables Silicone oil free High Functio

  18. Slide 18: No Glass Delamination in CZ Vials

    18 * West Internal Study. Bales, F., Lathrop, L., Kopp, A., and Mitchel, B.; “Detecting Siliceous Flakes in Glass Containers using Microscopic Techniques”. Photomicrograph Contact Surface* 57 Days @ pH 10 (50 mM boric acid/50 mM KCl) Daikyo Crystal Zenith Vial Glass Vial No Glass Delamination in CZ

  19. Slide 19: Daikyo Crystal Zenith Product Approvals

    19 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 Oncology Anticoagulant Oncology Bisphosphonate Hyaluronic acid Oncology Bisphosphonate Bulk Container Japan MHLW Europe EMEA US FDA

  20. Slide 20: SmartDose Electronic Wearable Injector

    20  Advanced large-volume injector for biologics • Tested on humans in a clinical study • Validated production line for clinical and commercial use  Current capabilities • Up to 3.5 mL delivered volume • Delivery time from minutes to hours • Subcutaneous injection • Proven in numerous user studies

  21. Slide 21: We are Delivering on our Strategies

    21  2013 sales growth in key product/geographic categories (ex-Fx): • High-value products grew 9.9% ($38 million) • Proprietary devices grew 19.5% ($15 million) • Asia-pacific sales grew 14.8% ($13 million)  First-in-human trials of SmartDose • Development and supply agreement  Geographic expansi

  22. Slide 22: Long-term Outlook

    22 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 expected to be driven by: • Improving produ

  23. Slide 23: Q1 2014 Summary Results

    23 Q1 2014 Summary Results $ millions, except earnings per-share (EPS) data (1) This is a Non-GAAP measure. See Slide 2 and “Non-GAAP Financial Measures” and “Notes to Non GAAP Financial Measures” on slides 26 and 27. (2) Historic EPS figures are adjusted for the stock split that occurred on Septemb

  24. Slide 24: Take-away Messages

    24 Take-away Messages  Key partner to pharmaceutical, biotech, and med device customers  “Sticky” core business – significant barriers to entry  Strong competitive position • Diversified customer base • Maturing proprietary technology pipeline • Global footprint with strong Position in fast growi

  25. Slide 25: West Pharmaceutical Services, Inc.

    25 West Pharmaceutical Services, Inc.

  26. Slide 26: Non-GAAP Financial Measures

    26 Non-GAAP Financial Measures(1) Three Months Ended March 31, 2014 and 2013 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 27) and “Cautionary Statement” (Slide 2) for an explanation and reconciliation of these items. Three-months ended March 31, 2014 Ope

  27. Slide 27: Notes to Non-GAAP Financial Measures

    27 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. These presentation materials use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in t

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