West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Lazard Capital Markets 6th Annual Healthcare Conference (November 2009)
23 slides from West Pharmaceutical Services's conference presentation, Nov 17, 2009
Slide 1: Lazard Capital Markets 6th Annual Healthcare Conference
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 Lazard Capital Markets 6th Annual Healthcare Conference New York,
Slide 2: Forward Looking Statements
Forward Looking Statements 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 expectati
Slide 3: Who We Are
Who We Are • Founded in 1923 • Leading global supplier of components and systems for injectable drug packaging and delivery – Vial closure systems and prefillable syringe components – Components for disposable delivery systems and diagnostics – Devices and device sub- assemblies – Safety and adminis
Slide 4: More than 80 million West products are used each day
Each and every day, more than 80 million West products are used to enhance the quality of healthcare around the world. 4
Slide 5: Business Environment
Business Environment • Global economic conditions remain soft, but show signs of improvement • Ongoing US healthcare reform debate • Pharma remains under substantial pressure • Global growth projected at 2.5% - - 5% (down from 5% - 7%) • North America down 1% - - 2% • Europe 0% - 1% • Emerging econo
Slide 6: Third Quarter Highlights
Third Quarter Highlights • Quarterly revenues grew 4.3% vs. 2008, excluding currency – H1N1-related sales contributed to growth – Customers’ cyclical inventory adjustments concluding? • Adjusted Diluted EPS 21.6% higher than prior year quarter • Announced Fourth-Quarter Restructuring Plans • Key Dev
Slide 7: Third Quarter and Year-To-Date Results
Third Quarter and Year-To-Date Results ($ in millions, except per share data) Quarter 3 Year-to-date 2009 2008 2009 2008 $258.9 $256.2 Net Sales $762.3 $806.3 27.7% 25.7% Gross Margin 28.8% 28.9% $5.1 $4.6 R&D $14.1 $14.8 $44.3 $41.5 SG&A $132.3 $122.5 $22.0 $19.7 Operating Profit (Non-GAAP) * $73.0
Slide 8: Capital Management
Capital Management ($M) 9/30/09 12/31/08 Total Debt $397.0 $386.0 Total Equity $565.7 $487.1 Net Debt to Total Capital 35.9% 38.0% Capital Expenditures: YTD Spending $70.4 Full Year Forecast / Actual $110 - $120 $131.8 8
Slide 9: Market Dynamics Support Future Growth
Market Dynamics Support Future Growth • Increasing number of patients with chronic illnesses Autoimmune Disease • Many of these are treated with biologic drugs • Biologic drugs demand ultra- Diabetes Vaccines clean delivery systems • Point of care shift: hospital to specialty clinic to home • Need f
Slide 10: Why West - Our Competitive Advantage
Why West - Our Competitive Advantage • Unmatched experience/expertise: drug - material interface – Global regulatory and technical support • Protected IP: proprietary materials and technology • Regulatory barrier to entry: US NDA and ANDA filings must include reference to packaging/components in con
Slide 11: Packaging & Delivery Systems for Large Molecules are a Key Business Driver
Packaging & Delivery Systems for Large Molecules are a Key Business Driver • Currently all large molecule drugs are delivered by injection • West components are preferred and used for the top selling biotech therapeutics • Used predominantly to treat chronic diseases – Diabetes – Cancer – Auto-immun
Slide 12: Global Biotech Blockbusters
Global Biotech Blockbusters (Annual Sales >$1Billion) 2007’s 22 Biotech Blockbusters Enbrel (Amgen/Wyeth) West supplies components for all Aranesp (Amgen) current Biotech Blockbuster products Remicade (J&J/SP) Rituxan (Roche) Total 106 Neulasta (Amgen) Erypo/Procrit (J&J) Herceptin (Roche) Epogen (A
Slide 13: Our Growth Strategy
Our Growth Strategy Drug Packaging Drug Delivery (How it is contained) (How it gets into the patient) Primary Container Solutions Administration Systems Prefillable Syringe Systems Advanced Injection Systems • Market segmentation to generate • Build market share in multi- incremental value per unit
Slide 14: Core Strategy - Add Incremental Quality and Value
Core Strategy - Add Incremental Quality and Value (representative prices per thousand units) $200 $250 $50 Uncoated 4432/50 V35 4432/50 S2 FluroTec® 4432/50 S2 FluroTec® Westar RS B2-40 Port Bag Westar RS $2,900 $300 $465 4432/50 S2 FluroTec® Westar® RS B2-40 4432/50 Sterile S2 W RU Ready Pack® Syst
Slide 15: China Plastics Facility
LL West @ Delivering Innovative Solutions China Plastics Facility
Slide 16: Our Growth Strategy
Our Growth Strategy Drug Packaging Drug Delivery (How it is contained) (How it gets into the patient) Primary Container Solutions Administration Systems Prefillable Syringe Systems Advanced Injection Systems • Market segmentation to generate • Build market share in multi- organic growth component sy
Slide 17: Delivery Systems - Key Programs
Delivery Systems - Key Programs ConfiDose® MixJect® Auto- Daikyo Crystal Zenith® injector NovaGuard™ Safety éris™ Vial2Bag™ Mix2Vial® Needle Device Safety Needle (luer-lock syringe) Devicesyringe) (fixed-needle 17
Slide 18: Daikyo Crystal Zenith Glass
Daikyo Crystal Zenith® Glass Comparison of protein aggregation in glass versus CZ for a model antibody 18
Slide 19: Our Long-term Focus
Our Long-term Focus • Superior quality and service • Margin improvement - lean manufacturing, OEE • Continued investment for the future – Innovation: New products that meet the challenge of biologics – Geographic expansion – Technology & product acquisitions • Financial discipline – Maintain strong
Slide 20: Five-Year Growth Opportunity
Five-Year Growth Opportunity Drug Packaging Drug Delivery (How it is contained) (How it gets into the patient) Primary Container Solutions Administration Systems Prefillable Syringe Systems Advanced Injection Systems $1.5 billion market for packaging $2 billion combined markets for safety, component
Slide 21: Summary
Summary • Market leader Injectable Container Solutions • Proprietary technology • Regulatory expertise • Customer base • Global footprint • Partnerships Prefillable – Daikyo Syringe Systems – Mexico Safety and Administration • New product pipeline Systems • Financial position – Cash flow – Balance s
Slide 22: Lazard Capital Markets 6th Annual Healthcare Conference
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 Lazard Capital Markets 6th Annual Healthcare Conference New York,
Slide 23: Slide 23