West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (September 2014)
23 slides from West Pharmaceutical Services's investor presentation, Sep 9, 2014
Slide 1: West Pharmaceutical Services, Inc. Investor Presentation September 2014
1 West Pharmaceutical Services, Inc. Investor Presentation September 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: 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
Slide 4: Partnering with our customers from their beginnings
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
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: 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
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 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-
Slide 10: Key Therapy Areas account for 70% of total Biologics Market
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
Slide 11: A Trusted Partner: West and Daikyo Components
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
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
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
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
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
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: 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
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
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
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
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
Slide 22: Take-away Messages
22 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
Slide 23: West Pharmaceutical Services, Inc.
23 West Pharmaceutical Services, Inc.
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