West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — West Pharmaceutical Services Investor Conference 2013
24 slides from West Pharmaceutical Services's conference presentation, Sep 11, 2013
Slide 1: West Pharmaceutical Services Investor Conference, September 11-12, 2013
1 West Pharmaceutical Services, Inc. Investor Conference New York, NY September 11-12, 2013
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: West's Story
3 West’s Story Foundations for growth: • “By your side” for 90 Years Growth drivers Results and outlook
Slide 4: Partnering with pharmaceutical, device and biotechnology customers
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: By your side
By your side a ‘or a healthier world _ Thank you <a
Slide 6: The West Transition
6 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* 2012 $1.3 B Kinston recovery Sale of CCI Sale of Drug Delivery Tech Group, Medimo
Slide 7: A Diverse, Stable Customer Base
7 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers) Industry-leading market shares in Europe and North America
Slide 8: Business Segments
8 Business Segments 2012 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 9: Competitive Advantages
9 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 10: Injectable Drug Growth: More, better, different
10 Injectable Drug Growth: More, better, different Persistent growth of injectable therapeutics: • Insulins • Biologics and specialty drugs • Orphan drugs • Generics and biosimilars Increasing industry and regulatory standards: • Quality • Safety Changing point-of-care: • Patient focused - Eas
Slide 11: Our Growth Initiatives 2013-2017
11 Our Growth Initiatives 2013-2017 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 12: High-Value Product Sales, Margin Growth
High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2008-2012 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2012 sales 12
Slide 13: Geographic Expansion: Asia-Pacific
13 Geographic Expansion: Asia-Pacific Singapore (existing): 1. High-value Product Focus 2. Asia-Pacific market & special items 3. R&D hub & technical center China IV Plastic (existing): Global supply China Elastomer (2013): China market, Efficiency focus India Metal (2014): 1. Asia-Pacific market su
Slide 14: Our Growth Initiatives 2013-2017
14 Our Growth Initiatives 2013-2017 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 2008-2012 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2012 sales
Slide 16: Evolving with the Marketplace
16 Evolving with the Marketplace Since 2005, we have expanded our offering by adding innovative technologies and solutions through acquisition, licensing, strategic partnerships and internal development. Acquired The Tech Group Acquired Medimop Administration Systems 2005 Licensed NovaGuard™ Safety
Slide 17: Strategic Focus: Integrating Primary Container and Device Components
17 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 18: Daikyo CZ Solution with Daikyo FluroTec Barrier Film
18 Daikyo CZ Solution with Daikyo FluroTec® Barrier Film Reduces: • Drug exposure to extractables • Risk of protein aggregation caused by silicone oil • In-process breakage and product returns caused by broken glass • Risk of delamination and glass-particulate contamination • Associated product re
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 fluconazole oncology anticoagulant 2 oncology 1 acyclovir hyaluronic acid 3 oncology API Container Japan MHLW Europe EMEA US FDA Cal
Slide 20: SmartDose Electronic Patch Injector Technology Platform
20 SmartDose® Electronic Patch Injector Technology Platform Programmed by PDA or PC Dose may be customized Applied and activated by patient Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs Prefilled cartridge, no need for user filling Based on Daikyo C
Slide 21: Recent Highlights
21 Recent Highlights Second-quarter results: • Revenue grew to $344.5 million, 5.7% higher ex-currency • Gross profit margin increased 180 bps, to 32.2% • $20 million exclusivity fee for SmartDoseTM Stock-split distributable September 26, 2013 • Record date of September 12, 2013 Twenty-first c
Slide 22: Looking Forward
22 Looking Forward 2013 expectations: • HVP growth continues to enhance sales mix Modest price increases vs. 2012 Customer inventory requirements • Lead times and backlog • New facility start-up costs to impact margins • Exchange-rate, commodity, and West share price volatility Expect long-t
Slide 23: Key Take-Away Messages
23 Key Take-Away Messages Key partner to pharmaceutical, biotech and medical device customers “Sticky” core business: significant barriers to change/entry Well positioned in fast-growing Asian markets Strong balance sheet, operating cash flow Disciplined, experienced, management team Inc
Slide 24: West Pharmaceutical Services, Inc.
24 West Pharmaceutical Services, Inc.
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