West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Healthcare Services Conference 2012
24 slides from West Pharmaceutical Services's conference presentation, Feb 7, 2012
Slide 1: West Pharmaceutical Services, Inc. - UBS Global Healthcare Services Conference
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2012 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
Slide 2: Safe Harbor Statement
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 inc
Slide 3: Pharmaceutical Packaging Systems and Delivery Systems
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems • A globally diverse manufacturer of products used primarily in containing and administering small-volume parenteral drugs. • Strong competitive position – Substantial market shares – Proprietary technology – Diversified customer base
Slide 4: A Diverse, Stable Customer Base
PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers)
Slide 5: Business Segments
$785 $324 Packaging Systems Business Segments 2010 Revenues ($ millions) Delivery Systems • Contract manufacturing base • Multi-material • Project management • Automated assembly • Regulated products • Capabilities + IP = proprietary delivery devices • Proprietary devices are expected to drive growt
Slide 6: Recent Highlights
Recent Highlights • First nine months of 2011: – Sales increased 4.5%, excluding currency – Gross and operating margin compressed by material costs, currency – Implemented mitigating surcharge mid-year • Updated long-term financial targets in Q3 2011 release & analyst call • 4th Quarter, Full-Year 2
Slide 7: 2012 Outlook and Challenges
2012 Outlook and Challenges • Expect 4%-6% revenue growth in 2012, excluding currency – Will provide more detailed expectations on February analyst call • Pharmaceutical and Device markets: – New product pipelines showing signs of strength – Patent cliff front and center – Shift to large molecule pr
Slide 8: What will drive growth?
• Packaging Systems Segment – Growth in emerging markets – Escalating regulatory and quality demands • Delivery Systems Segment – Growth in combination products that promote safety, dosing accuracy, ease of use, and deliver cost savings and product differentiation – Increasing awareness of glass qua
Slide 9: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% Generics >10% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 Therapeutic Category Growth Drivers
Slide 10: Packaging Segment Overview
Packaging Systems $785 Packaging Segment Overview 2010 Revenue ($ millions ) • Market leader • Strong recurring revenue base • Global manufacturing • Steady growth in base • Future growth will be driven by: added value per unit sold; geographic expansion; and growth in key therapeutic segments
Slide 11: Pharmaceutical Packaging Systems
Pharmaceutical Packaging Systems Packaging Components for Small Volume Parenterals Plungers, Tip caps, Needle shields for Glass Syringes Plungers, lined seals for Glass Cartridges for Pens Primary packaging components (those that touch the drug) are typically proprietary to West and are “designed in
Slide 12: Revenue Opportunity per Unit: Standard vs High-Value Products
Standard High-Value Products Products Revenue Opportunity ($ per unit) Plungers and sleeve stoppers Stoppers Seals RU seals Westar ® RU
Slide 13: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 14: Delivery Systems Segment Overview
$324 Delivery Systems Segment Overview • Contract manufacturing base • Customer owned IP • Project management • Automated assembly • Regulated products • Proprietary Product Development • West owned IP • Multiple use platforms • Focus on unmet needs for biologics 2010 Revenue ($ millions )
Slide 15: Delivery Systems
Delivery Systems Daikyo Crystal Zenith ® Life-cycle Containment Solutions West MixJect ® and Vial2Bag ® Custom Manufacturing of Components and Devices Proprietary Components, Devices and Systems West ConfiDose ® auto-injector platform technology SmartDose ® electronic patch injector platform technol
Slide 16: Effect of Increasing Proprietary Device Sales
Revenue per-unit Consumer product manufacturing Medical device manufacturing Mix2Vial ® CZ vials CZ Syringes Effect of Increasing Proprietary Device Sales Contract Manufacturing Proprietary Devices Products Auto-injector platform technology Electronic patch injector technology
Slide 17: Concerns With Glass Syringes
Concerns With Glass Syringes • Interaction with sensitive biologics • Protein aggregation (silicone oil) • Residual chemicals (tungsten, glue) • Glass flakes • Dimensional variation • Variable silicone distribution • High Cost of Quality • Breakage • In process/handling • Within auto-injector system
Slide 18: Daikyo CZ Solution
Daikyo CZ Solution with Daikyo Flurotec ® Barrier Film • Reduces: – drug exposure to extractables – risk of protein aggregation caused by silicone oil in the drug product – returns and in-process clean-ups caused by broken glass – risk of delamination and glass-particulate contamination • Consistent
Slide 19: Pharma Industry Drug Life-Cycle Management
Phase I Phase II Phase III Post-Market Life Cycle Management Pharma Industry Drug Life-Cycle Management 8 - 10 years 2 - 3 years 2 - 3 years Regulatory Approval Discovery
Slide 20: SmartDose Electronic Patch Injector Technology Platform
Programmed by PDA or PC Dose may be customized Applied and activated by patient SmartDose ® Electronic Patch Injector Technology Platform • Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs • Prefilled cartridge, no need for user filling • Based on Daikyo CZ
Slide 21: Our Long-Term Focus
Our Long-Term Focus • Pharmaceutical Packaging Systems – Organic growth of 3-5% per year – Margin expansion from efficiency, product mix – Capital investments target enhanced quality and value • Pharmaceutical Delivery Systems – Deliver the potential of Daikyo CZ products – Stronger mix of healthcar
Slide 22: Selected Financial Information
($ millions) September 30, 2011 December 31, 2010 Cash and cash equivalents $119.2 $110.2 Debt $378.0 $358.4 Equity $691.3 $625.7 Net debt to total invested capital 27.2% 28.4% Working capital $274.2 $266.9 Selected Financial Information • Balance Sheet • Dividend − Most recent quarter: $0.18 per sh
Slide 23: Summary
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems • Strong competitive position • Stability with growth potential • New products well positioned to meet future market needs • The financial strength to invest • 2011 Year-End Analyst Call February 16, 2012 at 9:00AM Summary
Slide 24: West Pharmaceutical Services, Inc.
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2012 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
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