West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — 2009 Barclays Global Healthcare Conference
31 slides from West Pharmaceutical Services's conference presentation, Mar 11, 2009
Slide 1: 2009 Barclays Global 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 2009 Barclays Global Healthcare Conference March 11, 2009 Miami, F
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 forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange A
Slide 3: Who We Are
Who We Are • Founded in 1923 • Global Headquarters near Philadelphia • Market capitalization $1.0 billion • World’s premier manufacturer of components and systems for injectable drug delivery – Closure systems and prefillable syringe components – Components for disposable systems – Devices and devic
Slide 4: West products used every day
Each and every day over 80 million West products are used to enhance the quality of healthcare around the world
Slide 5: What We Do
• Stability/efficacy/shelf life • Safety; “Quality by Design” • Time to market • Component selection • Reconstitution • Safety (needles and exposure) • Convenience/Compliance • Dosing accuracy • Ease of use • Compliance • Convenience DRUG PACKAGING DRUG PREPARATION DRUG ADMINISTRATION Production Pat
Slide 6: West's Competitive Advantage
West’s Competitive Advantage • Global manufacturing footprint • Unmatched experience/expertise: drug - material interface – Global regulatory and technical support • Protected IP: Proprietary materials and technology • Regulatory barrier to entry: US NDA and ANDA filing must include reference to all
Slide 7: Diverse, Stable Customer Base
Diverse, Stable Customer Base
Slide 8: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 9: Market Dynamics Support Future Growth
Source: Datamonitor Oncology & Hematology Auto-Immune (RA, MS, AIID) Diabetes/Insulin Vaccines Market Dynamics Support Future Growth • Increasing number of patients with chronic illnesses • Many of these are treated with biologic drugs • Biologic drugs demand ultra- clean delivery systems • Point of
Slide 10: Our Growth Opportunities
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems Development Primary Package Administration Our Growth Opportunities
Slide 11: Corporate Growth Strategy
Corporate Growth Strategy • Pharmaceutical Systems - Primary Drug Packaging • Develop differentiated, value added products to generate organic growth • New product innovation • Lean manufacturing • Strategic acquisitions • Geographic expansion
Slide 12: Primary Drug Packaging
West FluroTec ® Components Seal - - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size - $1.5 billion CAGR - - 4% Source: Company estimate for vial systems only West Spectra™ Seals Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd. FluroTec and Crystal Zenith technologies
Slide 13: Building Value in the Drug Packaging market
Uncoated 4432/50 V35 $50 $200 4432/50 S2 FluroTec ® Westar ® RS $250 4432/50 S2 FluroTec ® Westar ® RS B2-40 Port Bag $300 4432/50 S2 FluroTec ® Westar ® RS B2-40 (1000 packs) $465 4432/50 Sterile S2 W (RU) Ready Pack ™ (1000 packs) $2,900 RU Ready Pack™ System (small volume sourcing only) $3,500 $3
Slide 14: Corporate Growth Strategy
Corporate Growth Strategy • Pharmaceutical Systems Segment • Market segmentation to generate organic growth • New product innovation • Lean manufacturing • Strategic acquisitions • Geographic expansion • Capacity build - Europe, Singapore, North America • China Plastics • India Rubber site selection
Slide 15: Europe Plant Investments
LeNouvion plant LeNouvion clean room Eschweiler molding Eschweiler plant Eschweiler, Germany Compression molding facility LeNouvion, France Compression molding facility Europe Plant Investments
Slide 16: Europe Plant Investments
Kovin plant Kovin packing area Bodmin tool building Bodmin, UK Tool building facility Kovin, Serbia Compression molding facility Bodmin plant Europe Plant Investments
Slide 17: U.S. Plant Investments
Clearwater plant Kinston plant Kinston compounding area Clearwater seal assembly Clearwater, FL Aluminum seal manufacturing Kinston, NC Compression molding facility U.S. Plant Investments
Slide 18: China Expansion
China plant (rendering ) Suzhou, China Precision injection molding facility China Expansion
Slide 19: Plastic Plant - Construction activities
Plastic Plant - Construction activities
Slide 20: India represents a significant growth opportunity
India represents a significant growth opportunity Two regions being evaluated: Ahmedabad Hyderabad Broad generic infrastructure Rapidly growing R&D Strong biologics focus
Slide 21: Corporate Growth Strategy
Corporate Growth Strategy • Tech Group - Safety and Administration Systems • Build market share in multi-component systems for drug administration • Expand proprietary product portfolio through innovation and strategic technology acquisitions
Slide 22: Safety and Administration Systems
Vial2Bag™ Mix2Vial ® MixJect ® Estimated Total Market - $1.5 billion CAGR - - 11% Source: Greystone Associates and Company estimate Orion Safety System Safety and Administration Systems
Slide 23: New Products 2009-2013
Auto-injector System Daikyo Crystal Zenith® prefillable syringes Daikyo Crystal Zenith ® is a registered trademark of Daikyo Seiko, Ltd. New Products 2009 - - 2013
Slide 24: Critical Stability Issues for Biotechnology Drugs
Critical Stability Issues for Biotechnology Drugs • Aggregation – Silicone, Tungsten, Glue, Mfg. Processing • Adsorption - - vials and syringes – Impacts potency of large molecules • Immunogenicity/Neurogenicity • Polysorbate 20 and 80 – Detergents used for mitigating aggregation – Highly unpredicta
Slide 25: Higher extent of aggregation in glass compared to CZ
Higher extent of aggregation in glass compared to CZ Daikyo Crystal Zenith ® Glass Model Antibody
Slide 26: Management Operating Priorities 2009
Management Operating Priorities 2009 • Generate organic growth • Improve operating margin • Continue investing for the future – Innovation programs • New product launches – Geographic expansion: China, India – Capacity Expansion: Europe, North America – Information systems – Selective technology/pro
Slide 27: 2008 Overview
Exubera is a registered trademark of Pfizer, Inc. 2008 Overview • A challenging year – Exubera ® , ESA packaging, diagnostic component lost sales impact – Commodity, currency market instability – Global economic downturn • Strong growth in core component sales • Tech restructuring completed • China
Slide 28: Full Year Comparisons
2008 2007 Net Sales $1,051.1 $1,020.1 Gross Margin 28.8% 28.6% Research and Development 18.7 16.1 SG&A 159.3 152.5 Income from Continuing Ops 86.0 71.2 Diluted EPS from Continuing Ops $2.50 $2.06 Diluted EPS from Continuing Ops (Non-GAAP) * $2.38 $2.37 * 2008 diluted EPS from continuing operations e
Slide 29: Capital Management
($ millions, except %) 12/31/08 12/31/07 Total Debt $ 386.0 $ 395.1 Total Capitalization 873.1 886.0 Debt to Total Invested Capital 44.2% 44.6% Cash $ 87.2 $ 108.4 Net Debt to Total Invested Capital 38.0% 36.9% Year-To-Date Capital Spending $ 138.6 $ 129.4 Capital Management
Slide 30: Summary
Summary • Fundamental business drivers remain unchanged • Investing in long term growth opportunities – Capacity, geographic expansion – Innovation and product development • Solid balance sheet • Seasoned, experienced management team – Incentives closely tied to growth in shareholder value
Slide 31: Investor Relations Contact
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 2009 Barclays Global Healthcare Conference March 11, 2009 Miami, F
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