West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Bank of America Merrill Lynch 2014 Health Care Conference
26 slides from West Pharmaceutical Services's conference presentation, May 13, 2014
Slide 1: West Pharmaceutical Services, Bank of America Merrill Lynch 2014 Health Care Conference
1 West Pharmaceutical Services, Inc. Bank of America Merrill Lynch 2014 Health Care Conference Las Vegas, NV May 13, 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 Expanding core franchise with significant barriers to entry Favorable growth drivers Evolving technology platforms Strong financial position
Slide 4: Partnering with customers from their beginnings
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: A Diverse, Stable Customer Base
6 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers) 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: • Insulins • Biologics and specialty drugs • Orphan drugs • Generics and biosimilars Increasing industry and regulatory standards: • Quality • Safety Changing point-of-care: • Patient focused - Ease
Slide 10: Global Pharmaceutical Market Trends
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 10
Slide 11: Our Growth Initiatives 2014-2018
11 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 12: High-Value Product Sales, Margin Growth
12 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 13: Our Growth Initiatives 2014-2018
13 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 14: 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® 14
Slide 15: Strategic Focus: Integrating Primary Container and Device Components
15 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 16: Daikyo CZ Solution with Daikyo FluroTec Barrier Film
16 Daikyo CZ Solution with Daikyo FluroTec® Barrier Film Reduces: • Drug exposure to extractables • Can reduce 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
Slide 17: Daikyo Crystal Zenith Product Approvals
17 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 18: SmartDose Electronic Patch Injector Technology Platform
18 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 19: We are Delivering on our Strategy
19 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 13.1% ($13 million) First-in-human trials of SmartDose • Development and supply agreement Geographic expansi
Slide 20: Long-term Outlook
20 Long-term Outlook No fundamental change in long-term growth strategies and drivers: Revenue outlook: • High-value packaging growth expected to continue • Commercial uptake of proprietary delivery systems products • Geographic expansion Profitability: • Product mix continue to improve • Produc
Slide 21: Q1 2014 Summary Results
21 Q1 2014 Summary Results $ millions, except earnings per-share (EPS) data (1) This is a Non-GAAP measure. See Slide 2 and “Non-GAAP Financial Measures” and “Notes to Non GAAP Financial Measures” on slides 25 and 26. (2) Historic EPS figures are adjusted for the stock split that occurred on Septemb
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: Upcoming Investor Day – New York
23 Upcoming Investor Day – New York Investor Day May 22, 2014, New York, NY Details available at www.westpharma.com
Slide 24: West Pharmaceutical Services, Inc.
24 West Pharmaceutical Services, Inc.
Slide 25: Non-GAAP Financial Measures
25 Non-GAAP Financial Measures(1) Three Months Ended March 31, 2014 and 2013 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 26), “Cautionary Statement” (Slide 2) for an explanation and reconciliation of these items. Three-months ended March 31, 2014 Operat
Slide 26: Notes to Non-GAAP Financial Measures
26 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. These presentation materials use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in t
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