West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Barclays Global Healthcare Conference 2015

25 slides from West Pharmaceutical Services's conference presentation, Mar 12, 2015

  1. Slide 1: Investor Presentation – Barclays Global Healthcare Conference March 12, 2015

    1 West Pharmaceutical Services, Inc. Investor Presentation – Barclays Global Healthcare Conference March 12, 2015

  2. Slide 2: Cautionary Statement / Safe Harbor Statement

    2 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 include, but are not li

  3. Slide 3: Today's Presentation

    3 Today’s Presentation West: Long- Established Partner Leading Packaging Systems Franchise Advancing Delivery Systems Businesses Strong Financial Position Positioned for Future Growth

  4. Slide 4: Why West?

    4 90 YEARS OF HISTORY INNOVATION MARKET LEADING SOLUTIONS Why West?

  5. Slide 5: The West Transition

    5 Initiated strategic transformation in 2001 to become a leading global supplier of value-added pharmaceutical packaging systems and components 2014 $1.42 B CAGR is the compound annual growth rate based on reported sales, excluding discontinued operations Acquisitions of businesses and technologies

  6. Slide 6: A Solid Commercial Base

    6 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE INDUSTRY-LEADING MARKET SHARES IN EUROPE AND NORTH AMERICA A Solid Commercial Base

  7. Slide 7: West Delivers on Global Market Drivers

    7 West Delivers on Global Market Drivers Injectables Focused Global Reach Quality Culture Ability to Reduce Costs Delivery Solutions Advanced biologic treatments for chronic diseases Globalization and consolidation Stricter regulatory and compliance standards Value-driven marketplace Differentiation

  8. Slide 8: Injectable Therapies on the Rise

    8 Injectable Therapies on the Rise Vials Unit Growth CAGR 10-13* Unit Growth Outlook 13- 18** Syringes Cartridges Cartridges 4% 10% 8-10% 4-5% Syringes 5-6% *IMS Institute **Pharma Congress 2014, F. Haefele – BI, March 2014 Vials 3% • Antibiotics • Anti-Diabetics • Cancer • Rare Diseases • Vaccines

  9. Slide 9: Biologics—A Growing Share of Medicines

    9 Biologics—A Growing Share of Medicines 2002 11% $46 Bn 2017 Estimate 19-20% $221 Bn Biologics % share and sales values • Biologics growth driven by monoclonal antibodies (MAbs) and insulin • Emergence of biosimilars and non-original biologics (NOBs) have emerged, taking a small percentage of the t

  10. Slide 10: Business Segments

    10 Business Segments 2014 Revenues (millions) Consolidated $1,421 Packaging Systems $1,020 Delivery Systems $402  Primary packaging components for liquid and lyophilized Rx: • Vials • Prefillable syringes • Cartridges • IV containers  Secondary packaging components  Elastomers for single-use syri

  11. Slide 11: Packaging Systems

    11 Packaging Systems  Sales 6.0% CAGR over past 5 years (through 2014)*  High-value products 11.2% CAGR over past 5 years • FluroTec ® coatings • NovaPure® components • Envision™ inspection • Westar ® processing • Daikyo RS and RU products * Excludes currency

  12. Slide 12: Competitive Advantages Packaging Systems

    12 Competitive Advantages Packaging Systems  “Designed-in” primary packaging (barrier to change)  Strong IP base: • materials/process • manufacturing technology (HVPs)  Global capabilities for global customers $750 $850 $950 $1,050 2010 2011 2012 2013 2014 Packaging Systems Sales ($M)

  13. Slide 13: A Trusted Partner

    13 West and Daikyo components The Top 50 pharma and biotech companies in the world rely on The top 35 injectable biologics rely on West and Daikyo components > 130 million needle safety systems annually > 100 million components and assemblies for pens and auto-injectors annually A Trusted Partner

  14. Slide 14: New Biologics Face Increasing Challenges

    14 New Biologics Face Increasing Challenges…. Trends  Long-acting/depot injections  Smaller batch sizes  Technical constraints • Sensitivities • High concentration • Viscosity • Delivery route  Increasingly competitive Implications  New ways to deliver medicine  New manufacturing approach • Fl

  15. Slide 15: High-Value Product Sales, Margin Growth

    High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2010-2014 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2014 sales Disposable Components Standard Packaging High-Value Products -5.0% 0.0% 5.0% 10.0% 15.0% 0.0% 70.0% 5 Y e a r C A G R

  16. Slide 16: Delivery Systems

    16 Delivery Systems  Sales CAGR of 7.4% over past 5 years (through 2014)*  Proprietary products grew 20% per annum over past 5 years • Daikyo Crystal Zenith® vials and syringes • SmartDose® electronic wearable bolus injector • Mix2Vial administration device • érisTM safety system  Tech Group * Ex

  17. Slide 17: Contract Manufacturing

    Contract Manufacturing ) West€ Ss Tad The Tech Group j ee cat A West Company

  18. Slide 18: Competitive Advantages Delivery Systems

    18 Competitive Advantages Delivery Systems  Contract Manufacturing • Engineering • Project Management • Tooling  Established proprietary product sales: • Drug Reconstitution and Administration • Needle Safety • CZ Vials $300 $350 $400 $450 2010 2011 2012 2013 2014 Delivery Systems Sales ($M)

  19. Slide 19: Proprietary Product Sales, Margin Growth

    Proprietary Product Sales, Margin Growth Pharmaceutical Delivery Systems 2010-2014 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2014 sales SmartDose® Proprietary Contract Manufacturing 0.0% 5.0% 10.0% 15.0% 20.0% 0.0% 40.0% 5 Y e a r C A G R Category Gross

  20. Slide 20: Our Growth Initiatives 2015-2019

    20 Packaging Systems Delivery Systems  Build on Delivery Systems capabilities and proprietary products: • Daikyo Crystal Zenith • Safety and administration aids • Self-dosing devices/combination products Our Growth Initiatives 2015-2019  High-value products: modest unit growth, increasing ASP* and

  21. Slide 21: Level of Customer Engagement

    21 Level of Customer Engagement V al u e to W e s t Strategic Focus: Integrating Primary Container and Device Elements of the Delivery System • CZ syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • éris™ & NovaGuard™ safety + glass • Molded systems Integrated Delivery Systems

  22. Slide 22: Progress on New Proprietary Products

    22 Progress on New Proprietary Products  SmartDose Electronic Wearable Injector • 8 Active development projects • Phase III clinical trial • Shipped in 2014:  > 100,000 units,  > 800,000 cartridges  Daikyo Crystal Zenith Vials and Syringes • Over 30 products approved in JP, NA, EU • Doubled # of

  23. Slide 23: Geographic Expansion

    23 Geographic Expansion  Completed India metals facility • Production initiated - 7/14 • Product transfers from Singapore  Free-up Singapore for more HVPs  Initiated Waterford, Ireland expansion • Phase 1 construction commencing - Q2/15  Expanded Kinston site to include high- value processing fo

  24. Slide 24: Take-Away Messages

    24  Key partner to pharmaceutical, biotech, and medical 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 growing Asian market

  25. Slide 25: West Pharmaceutical Services, Inc.

    25 West Pharmaceutical Services, Inc.

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