West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS 9th Annual "New Ideas" Investor Conference (January 2009)
31 slides from West Pharmaceutical Services's conference presentation, Jan 7, 2009
Slide 1: CJS 9th Annual New Ideas Investor Conference
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com CJS 9 th Annual “New Ideas” Investor Conference January 7, 2009 Ne
Slide 2: Forward-looking statements
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange A
Slide 3: Who We Are
Who We Are • Founded in 1923 • Global Headquarters near Philadelphia • Market capitalization $1.2 billion • World’s premier manufacturer of components and systems for injectable drug delivery – Closure systems and prefillable syringe components – Components for disposable systems – Devices and devic
Slide 4: What We Do
• Stability/efficacy/shelf life • Safety; “Quality by Design” • Time to market • Component selection • Ease of use • Safety (needles and exposure) • Convenience/Compliance • Needle safety • Ease of use • Compliance • Convenience DRUG PACKAGING DRUG PREPARATION DRUG ADMINISTRATION Production Patient
Slide 5: Diverse, Stable Customer Base
Diverse, Stable Customer Base
Slide 6: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 7: Sales by region
South America 5% North America 49% Europe 42% Asia/Pacific 4%
Slide 8: 2008 Overview
Exubera is a registered trademark of Pfizer, Inc. 2008 Overview • A challenging year – Exubera, ESA packaging, diagnostic component lost sales impact – Commodity, currency market instability – Global economic downturn • Strong growth in core component sales • Tech restructuring completed • China pla
Slide 9: Market Dynamics Support Future Growth
Source: Datamonitor Oncology & Hematology Auto-Immune (RA, MS, AIID) Diabetes/Insulin Vaccines Market Dynamics Support Future Growth • Increasing number of patients with chronic illnesses • Many of these are treated with biologic drugs • Biologic drugs demand ultra- clean delivery systems • Point of
Slide 10: West's Competitive Advantage
West’s Competitive Advantage • Global manufacturing footprint • Unmatched experience/expertise: drug - material interface – Global regulatory and technical support • Protected IP: Proprietary materials and technology • Regulatory barrier to entry: US NDA and ANDA filing must include reference to all
Slide 11: Our Growth Opportunities
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems Development Primary Package Administration Our Growth Opportunities
Slide 12: Corporate Growth Strategy: Pharmaceutical Systems Segment
Corporate Growth Strategy • Pharmaceutical Systems Segment • Develop differentiated, value added products to generate organic growth • New product innovation • Lean manufacturing • Strategic acquisitions • Geographic expansion
Slide 13: Primary Packaging
West FluroTec ® Components Seal - - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size - $1.5 billion CAGR - - 4% Source: Company estimate for vial systems only West Spectra™ Seals Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd. FluroTec and Crystal Zenith technologies
Slide 14: Building Value in the Injectable Container Business
Uncoated 4432/50 V35 $50 $200 4432/50 S2 FluroTec ® Westar RS $250 4432/50 S2 FluroTec ® Westar RS B2-40 Port Bag $300 4432/50 S2 FluroTec ® Westar ® RS B2-40 (1000 packs) $465 4432/50 Sterile S2 W (RU) Ready Pack (1000 packs) $2,900 RU Ready Pack System (small volume sourcing only) $3,500 $360
Slide 15: Corporate Growth Strategy: Pharmaceutical Systems Segment
Corporate Growth Strategy • Pharmaceutical Systems Segment • Market segmentation to generate organic growth • New product innovation • Lean manufacturing • Strategic acquisitions • Geographic expansion • China Plastics • India Rubber site selection
Slide 16: Overview Plastic and Rubber plant
Overview Plastic and Rubber plant
Slide 17: Plastic Plant - Construction activities
Plastic Plant - Construction activities
Slide 18: India represents a significant growth opportunity
India represents a significant growth opportunity Two regions being evaluated: Ahmedabad Hyderabad Broad generic infrastructure Rapidly growing R&D Strong biologics focus
Slide 19: Corporate Growth Strategy: Tech Group Segment
Corporate Growth Strategy • Tech Group Segment • Build market share in multi-component systems for drug administration • Expand proprietary product portfolio through innovation and strategic technology acquisitions
Slide 20: Safety and Administration Systems
Vial2Bag™ Mix2Vial ® MixJect ® Total Market - $1.5 billion CAGR - - 11% Source: Greystone Associates and Company estimate Project Orion Safety and Administration Systems
Slide 21: Critical Stability Issues for Biotechnology Drugs
Critical Stability Issues for Biotechnology Drugs • Aggregation – Silicone, Tungsten, Glue, Mfg. Processing • Adsorption - vials and syringes – Impacts potency of large molecules • Immunogenicity/Neurogenicity • Polysorbate 20 and – Detergents used for mitigating aggregation – Highly unpredictable •
Slide 22: Prefillable Syringe Systems
FluroTec ® Plungers Needle Shields, Tip Caps Daikyo Crystal Zenith ® 1mL LL Prefillable Syringe Daikyo Crystal Zenith ® Inserted Needle Syringe Estimated Market Size - $900 million CAGR - - 8% Source: Company estimates Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd. FluroTec and Cryst
Slide 23: Higher extent of aggregation in Glass compared to CZ
Glass CZ Higher extent of aggregation in Glass compared to CZ Day Glass CZ 0.00 0.05 0.10 0.15 0.20 0.25 O.D. Recombinant Fusion Protein
Slide 24: Higher extent of aggregation in Glass compared to CZ
Higher extent of aggregation in Glass compared to CZ Daikyo Crystal Zenith ® Glass Model antibody
Slide 25: Filling Trials Underway
Filling Trials Underway Numerous customers are evaluating Daikyo Crystal Zenith as both a primary container and a prefilled syringe in a broad range of trials
Slide 26: Advanced Injection Systems
West Advanced Injection System Platform Staked Needle Prefillable Syringe Plunger Primary Drug Container Lined Seal Platform 1mL Flanged Cartridge Estimated Market Size - - $210 million CAGR - - 8% Source: Greystone Associates and Company estimates Advanced Injection Systems
Slide 27: Management Operating Priorities 2009
Management Operating Priorities 2009 • Generate organic growth • Improve operating margin • Continue investing for the future – Innovation programs • New product launches – Geographic expansion: China, India – Capacity Expansion: Europe, North America – Information systems – Selective technology/pro
Slide 28: September Results
* 2008 diluted EPS from continuing operations excludes an $0.11 per share net gain on a contract settlement related to a discontinued product line, a $0.05 per share impact of Tech restructuring charges and $0.09 per share of discrete tax benefits. 2007 diluted EPS from continuing operations exclude
Slide 29: Capital Management
($ millions, except %) 9/30/08 12/31/07 Total Debt $ 382.5 $ 395.1 Total Capitalization 920.5 886.0 Debt to Total Invested Capital 41.6% 44.6% Cash $ 102.5 $ 108.4 Net Debt to Total Invested Capital 34.2% 36.9% Year-To-Date Capital Spending $ 88.2 $ 129.4 Capital Management
Slide 30: Summary
Summary • Fundamental business drivers remain unchanged • Long term growth opportunities intact • Solid balance sheet • Seasoned, experienced management team – Incentives closely tied to growth in shareholder value • Year end call Thursday February 19 9:00AM
Slide 31: Contact
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com CJS 9 th Annual “New Ideas” Investor Conference January 7, 2009 Ne
West Pharmaceutical Services — CJS 9th Annual "New Ideas" Investor Conference (January 2009) on 6ix