West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS Securities' 11th Annual "New Ideas for the New Year" Investor Conference (January 2011)
24 slides from West Pharmaceutical Services's conference presentation, Jan 12, 2011
Slide 1: West Pharmaceutical Services Update
WEST PHARMACEUTICAL SERVICES UPDATE Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com CJS Securities’ 11th Annual “New Ideas for the New Year” Investor Conference New York, NY January 12, 2011
Slide 2: Safe Harbor Statement
This presentation contains “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995, that are based on management’s beliefs and assumptions, current expectations, estimates and forecasts. Statements that are not historical facts, including stateme
Slide 3: West is a globally diversified manufacturer of healthcare and consumer products
West is a globally diversified manufacturer of products consumed in the healthcare and consumer markets. Every day over 80 million West and Daikyo products are used to enhance the quality of healthcare worldwide.
Slide 4: A Diverse, Stable Customer Base
Pharmaceutical/Biotech Generic Medical Device A Diverse, Stable Customer Base
Slide 5: West's Structure
Packaging Systems Delivery Systems Development Primary Package Administration West’s Structure • 9-month 2010 sales: $591 MM • Established leadership • High market share • Stable growth rate • 9-month 2010 sales: $240 MM • Proprietary devices • Contract manufacturing • High projected growth rate
Slide 6: 2010 Retrospective
2010 Retrospective • Operating Challenges: – Currency volatility – Increased R&D spending on new product programs – Manufacturing footprint: Phased reductions of operations at St. Austell, UK and Montgomery, PA plants announced in Q4 • Nine-Months ended September 30, 2010 – Sales up 8.6% (9.4% exclu
Slide 7: 2011 Outlook
2011 Outlook • Asymmetrical global economic recovery – Europe, US, Japan remain sluggish – China, India, Brazil stronger – Continuing currencies, commodity price volatility • New product approvals delayed – Bydureon – Benlysta – Expansion of indications for approved drugs difficult (Avastin) • Broad
Slide 8: Growth Drivers
• Packaging Systems Segment – Demographics and increasing prevalence of chronic disease – Biologics – Growth in Emerging Markets – Increased access to Healthcare – Escalating quality expectations: “Zero Defects” • Delivery Systems Segment – Glass compatibility/breakage issues – Demand for combinatio
Slide 9: Growth Strategy
• Packaging Systems (Pharm Systems) Segment – The Global Quality Initiative • Grow incremental value per unit - e.g WESTAR RU Launch – Geographic expansion - capacity investments in Asia – Improved operating efficiency: lean operations – Strategic acquisitions and partnerships • Delivery Systems (Te
Slide 10: 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 11: Traditional Pharmaceutical Delivery
Traditional Pharmaceutical Delivery West MixJect ® and Vial2Bag ® Prefilled Glass Cartridge and Pen Glass Vials and Syringes
Slide 12: High-Value Products Drive Growth
High-Value Products Drive Growth Westar ® RS State of the art ready-to-sterilize elastomer closures Westar ® RU Sterile ready-to- use syringe plungers and closures Envision ™ Technically advanced, automated vision inspection system NovaPure ™ Unrivaled Quality…by design
Slide 13: Value Proposition
Value Proposition Proprietary Products Revenue and Margin Opportunity Disposable Device Components Westar ® RS Mix2Vial ® NovaGuard ™ éris ™ Westar ® RU Standard Components Consumer Products Packaging Delivery
Slide 14: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 15: Future Pharmaceutical Delivery
Future Pharmaceutical Delivery West ConfiDose ® Auto-injector System West Electronic Patch-injector
Slide 16: 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 Reconstitution & Transfer Systems ConfiDose ® and Eris™ are registered tradema
Slide 17: Concerns With Glass Syringes
Concerns With Glass Syringes • Interaction with sensitive biologics • Protein aggregation (silicone oil) • Residual chemicals (tungsten, glue) • Glass flakes • Breakage • In process • Within auto-injector systems • Recent FDA recalls • Dimensional variation • Breakage in auto-injector systems • Desi
Slide 18: Glass syringe and vial recalls
Epogen Amgen Methotrexate Glucagen Novo §f Enbrel Sureclick Sandoz Amgen *October 28, 2010 «January 18, 2010 *September 24,2010 [J November 12010 ff -Broken/crackedvials ff *Broken/cracked *Glass flakes *Glass flakes auett syringes Sono otE ee )00s. Te Mieele
Slide 19: Electronic Patch Injector System
Electronic Patch Injector System • Controlled, subcutaneous, micro- infusion delivery of high volumes and high viscosity drugs • Prefilled cartridge, no need for user filling • Based on Daikyo CZ cartridge • Compact • Hidden needle for safety • Single push-button operation • Fully programmable
Slide 20: Prototype Electronic Patch Injector Operation
Programmed by PDA or PC Dose may be customized Attached and activated by patient Prototype Electronic Patch Injector Operation
Slide 21: Our Long-Term Focus
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
Slide 22: Long-Term Growth Opportunity
Pharmaceutical Packaging Systems Primary Container Solutions Pharmaceutical Delivery Systems Administration Systems Long-Term Growth Opportunity Strategic Planning Goals: • Projected 2014 sales of $0.6 billion • Projected 2014 Operating margin: > 20% $1.5 billion market for components with unit grow
Slide 23: Summary
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 – Balanc
Slide 24: West Pharmaceutical Services Update
WEST PHARMACEUTICAL SERVICES UPDATE Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com