West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Life Sciences Investor Conference 2010
32 slides from West Pharmaceutical Services's conference presentation, Sep 22, 2010
Slide 1: West Corporate Overview
WEST CORPORATE OVERVIEW Solutions for Injectable Drug Delivery UBS Global Life Sciences Investor Conference September 22, 2010 Donald E. Morel Jr, Ph.D. Chairman and Chief Executive Officer NYSE: WST www.westpharma.com
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 expectations,
Slide 3: Corporate Profile
CORPORATE PROFILE Injection Systems Administration Systems Crystal Zenith Syringes Packaging Systems • Premier partner to the pharmaceutical and biotech industry • For more than 85 years, a global leader in the development of innovative systems for packaging and delivery of injectable drugs: • Prima
Slide 4: Every day over million West products enhance healthcare worldwide
Every day over 80 million West products enhance the quality of healthcare worldwide.
Slide 5: Global Presence
32 Manufacturing sites 34 Sales locations Technical centers Partner locations GLOBAL PRESENCE
Slide 6: Sales Growth 2002 - 2009
SALES GROWTH 2002 - 2009 Net sales in millions Sales CAGR 14.4%
Slide 7: Challenging Business Environment
• Global economic conditions unsettled • Global pharmaceutical revenue growth projected to be 4-6% (per IMS) on modest unit growth • North America growth projected at 4.5 - 5.5% • Europe growth moderate 2-4% • “Pharmerging” markets should grow > 10% (India, China, Brazil and others) • Managing throu
Slide 8: Second Quarter Results
$ millions, except per share data 2010 2009 Net Sales $281.8 261.0 Gross Margin 29.5% 30.2% Research & Development $5.7 $4.7 Selling, General & Administrative Exp. $45.8 $45.1 Net Income $21.7 $19.7 Diluted EPS - GAAP $0.62 $0.57 Diluted EPS - Non-GAAP* $0.64 $0.58 * Second quarter 2010 diluted EPS
Slide 9: Second Quarter Guidance
• Major items impacting August 3, 2010 guidance revisions • Currency effects (e.g., revised estimate at $1.30 /€1 vs. $1.36) • Increased R&D spending on new product programs • Caution regarding profitability on less predictable sales mix • Comparative results vs. 2009 • Currency (e.g., estimated $1.
Slide 10: Long-Term Business Drivers
West supplies sophisticated packaging systems for the top 20 biologic drugs (by sales) currently on the market. • Demographics • Increasing global access to advanced healthcare • Generic growth • Requirement for easy, safe, accurate dosing • Combination product growth • Growth in biologics and vacci
Slide 11: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 THERAPEUTIC CATEGORY GROWTH DRIVERS
Slide 12: West's Structure
Development Primary Package Administration WEST’S STRUCTURE • 2009 sales: $776 million • Established leadership • High market share • Stable growth rate • 2009 sales: $285 million • Proprietary devices • Contract manufacturing • High projected growth rate
Slide 13: Packaging Systems
Proprietary Products Key Therapeutic Categories PACKAGING SYSTEMS • 2009 sales: $776 million • Over 36 billion parts produced annually • NovaPure™, Westar ® RS & RU • FluroTec ® • Envision™ • Vaccines • Oncology • Diabetes • Autoimmune disease • Diagnostics
Slide 14: Packaging Systems Growth Strategy
West’s Competitive Advantage: Unmatched expertise in drug - material interactions Market leader in packaging for biologics Protected IP: Proprietary materials and processing technology - Drug Master File (DMF) 1546 Regulatory barriers to entry: US NDAs and ANDAs require proof of stability Global man
Slide 15: High-Value Products Drive Growth
Westar ® RS State-of-the-art ready-to-sterilize elastomer closures Westar ® RU State-of-the-art ready-to-use syringe plungers and closures Envision ™ Technically advanced, automated vision inspection system NovaPure ™ Unrivaled quality…by design HIGH-VALUE PRODUCTS DRIVE GROWTH
Slide 16: Value Proposition
Revenue and Margin Opportunity Disposable Device Components Standard Components Consumer Products VALUE PROPOSITION Proprietary Products Disposable Device Components Westar ® RS Mix2Vial ® NovaGuard™ éris™ Westar ® RU Standard Components Consumer Products Packaging Delivery
Slide 17: Faster Growth of High-Value Products
FASTER GROWTH of HIGH-VALUE PRODUCTS Pharmaceutical Packaging Systems
Slide 18: Delivery Systems
Contract Manufacturing Proprietary Products Synergies DELIVERY SYSTEMS • 2009 sales: $242 million • Over 100 million parts produced and assembled annually • 2009 sales: $43 million • Reconstitution, Daikyo CZ systems, syringe safety, self-administration • Marketing • Engineering • Project management
Slide 19: Delivery Systems Growth Strategy
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems • Concentrate on systems for unmet market needs • Build market share in multi- component systems for drug administration utilizing Daikyo CZ as a platform technology • Production suppo
Slide 20: Foundation of Delivery Systems
2005 2006 2007 2008 2009 2010 FOUNDATION OF DELIVERY SYSTEMS Daikyo CZ Insert Needle License: Prefillable Syringe Systems Acquisition of Plastef: Prefillable Syringe Safety Acquisition of The Tech Group : Manufacturing & Engineering Established Proprietary Innovation Initiative Acquisition of Medimo
Slide 21: Integrated Solutions for Container, Administration and Injection Systems
INTEGRATED SOLUTIONS FOR CONTAINER, ADMINISTRATION AND INJECTION SYSTEMS Daikyo Crystal Zenith ® Bulk Drug Containers Vials & Plastic Caps Insert Needle & Luer Lock Syringes Cartridges Novel Devices Administration Systems Injection Systems Reconstitution & Transfer Systems NovaGuard™ Needle Safety C
Slide 22: Life Cycle Planning
LIFE CYCLE PLANNING Bulk Drug Vial Format Prefillable Syringe Auto-injector System From early phase bulk drug containment to auto-injector
Slide 23: Prefillable Syringe Systems
Prefillable Syringe Systems DAIKYO CRYSTAL ZENITH ® INSERT NEEDLE SYRINGE • Pharmaceutical company benefits • Silicone-oil free container • Tungsten free • Glue free • Lower dead space • Reduced risk associated with breakage, waste and potential for recall • Auto-injector system benefits • Consisten
Slide 24: Daikyo Crystal Zenith 1mL Long Insert Needle Syringe System
Phase III • Production Cell • 4 cavity system (~ 3 million units annually) • ISO 7 (Class 10,000) Scottsdale • Automated handling • Vision (100% in line) • X Ray (100% in line) DAIKYO CRYSTAL ZENITH ® 1mL LONG INSERT NEEDLE SYRINGE SYSTEM
Slide 25: ConfiDose Auto-Injector System
CONFIDOSE ® AUTO-INJECTOR SYSTEM • Disposable auto-injector system • 1mL long Insert needle syringe (glass or CZ) • Reduces risk of glass breakage and syringe variability issues • High viscosities possible • Hidden needle and full retraction for safety • Simple 3-step process • Audible, visual and t
Slide 26: Needle Safety Systems
NEEDLE SAFETY SYSTEMS • NovaGuard™ for Luer connection • Only FDA cleared passive system for Luer lock syringes • Eris for staked needle † • >125 million units manufactured per year • Market leading safety system for staked needle syringes Customer evaluation ongoing • Needle hiding • Needlestick sa
Slide 27: Sub-Q Microinfusion System
SUB-Q MICROINFUSION SYSTEM • Controlled subcutaneous delivery of high volumes and high viscosity • Prefilled cartridge, no need for user filling • Based on Daikyo CZ cartridge • Compact • Hidden needle for safety • Single push button operation • Programmable
Slide 28: Our Long-Term Focus
• Pharmaceutical Packaging Systems • Organic growth (on average) of 3-5% per year • Margin expansion through improved operating efficiency, product mix • Capital investments targeted at enhanced quality and value • Pharmaceutical Delivery Systems • Deliver the potential of Daikyo CZ products • Incre
Slide 29: Five-Year Growth Opportunity
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems Consolidated 2014 Planning Objectives Strategic Planning Goals: • Projected 2014 sales of $0.6 billion • Projected 2014 Operating margin: > 20% Strategic Planning Goals: • Projected 20
Slide 30: Five-Year Growth Opportunity
Five-Year Growth Opportunity:
Slide 31: Summary
• Well positioned – Substantial market share – Proprietary technology – Diversified customer base – Global footprint • Significant Growth Potential – Strength in new product pipeline – Preferred products for biologics • The financial strength to invest – Reliable operating cash flow – Balance sheet
Slide 32: West Corporate Overview
WEST CORPORATE OVERVIEW Solutions for Injectable Drug Delivery NYSE: WST www.westpharma.com
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