West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Lazard Capital Markets 8th Annual Healthcare Conference (November 2011)
22 slides from West Pharmaceutical Services's conference presentation, Nov 16, 2011
Slide 1: West Pharmaceutical Services, Inc.
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2011 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
Slide 2: Safe Harbor Statement
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 inc
Slide 3: Pharmaceutical Packaging Systems and Delivery Systems
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems • A globally diverse manufacturer of products used primarily in containing and administering small-volume parenteral drugs. • Strong competitive position – Substantial market shares – Proprietary technology – Diversified customer base
Slide 4: Sales
Sales ($ in millions) Compound annual growth rate: 4.9% (4.3% ex-currency)
Slide 5: Business Segments
$785 Packaging Systems Business Segments $324 2010 Revenues ($ millions) Delivery Systems • Contract manufacturing base • Multi-material • Project management • Automated assembly • Regulated products • Capabilities + IP = proprietary delivery devices • Proprietary devices are expected to drive growt
Slide 6: A Diverse, Stable Customer Base
PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers)
Slide 7: What Will Drive Growth?
• Company – Demographics and increasing prevalence of chronic disease – Increasing use of biologics to treat those – Broader access to healthcare • Packaging Systems Segment – Growth in emerging markets – Products and processes to satisfy escalating regulatory and quality expectations • Delivery Sys
Slide 8: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% Generics >10% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 Therapeutic Category Growth Drivers
Slide 9: Pharmaceutical Packaging Systems
Pharmaceutical Packaging Systems Packaging Components for Small Volume Parenterals Plungers, Tip Caps, Needle Shields for Glass Syringes Plungers, Lined Seals for Glass Cartridges for Pens Primary packaging components (those that touch the drug) are typically proprietary to West and are “designed in
Slide 10: Packaging Systems Segment Growth Strategy
Packaging Systems Segment • Increase per-unit value • Continued growth of prefilled syringes • Improve operating efficiency: lean operations • Geographic expansion - capacity investments in Asia • Strategic acquisitions and partnerships Growth Strategy
Slide 11: Revenue Opportunity per Unit: Standard vs High-Value Products
Standard High-Value Products Products Revenue Opportunity ($ per unit) Plungers and sleeve stoppers Stoppers Seals RU seals Westar ® RU
Slide 12: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 13: Key High-Value Products
Pharmaceutical Packaging Systems Key High-Value Products • Westar ® RS (ready-to-sterilize) and Westar ® RU (ready-to-use) components • Barrier film coatings (FluroTec ® , Teflon ® coated) enhance drug-product stability – Key feature for biotech products • B-2 and LyoTec ® coatings for enhanced hand
Slide 14: Delivery Systems
Delivery Systems ConfiDose ® auto-injector system Daikyo Crystal Zenith ® life-cycle containment solutions SmartDose ® electronic patch injector system MixJect ® and Vial2Bag ® Custom Manufacturing of Components and Devices Proprietary Components, Devices and Systems
Slide 15: Delivery Systems Segment Growth Strategy
Delivery Systems Segment • Realize commercial potential of Crystal Zenith products • Leverage life-cycle management opportunities • Develop new platform opportunities - combination products • Custom solution provider Growth Strategy
Slide 16: Effect of Increasing Proprietary Device Sales
Revenue per-unit Consumer product manufacturing Medical device manufacturing Mix2Vial ® Crystal Zenith vials Crystal Zenith syringes ConfiDose ® Effect of Increasing Proprietary Device Sales Contract Manufacturing Proprietary Devices Products SmartDose ®
Slide 17: Daikyo Crystal Zenith Solution
Daikyo Crystal Zenith ® Solution with Daikyo FluroTec ® Barrier Film • Reduces: – drug exposure to extractables – risk of protein aggregation caused by silicone oil in the drug product – returns and in-process clean-ups caused by broken glass – risk of delamination and glass-particulate contaminatio
Slide 18: SmartDose Electronic Patch Injector
Programmed by PDA or PC Dose may be customized Applied and activated by patient SmartDose ® Electronic Patch Injector • Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs • Prefilled cartridge, no need for user filling • Based on Daikyo Crystal Zenith ® cartri
Slide 19: New Product Commercialization
New Product Commercialization Schematic representation of order and timing of West & Customer activities Commercial Sales: Rx product approval and launch (new product) Production using new West product Commercial production 1 2 4 5 6 Approximate timing (years)
Slide 20: Our Long-Term Focus
Our Long-Term Focus • Pharmaceutical Packaging Systems – Organic growth of 3-5% per year – Margin expansion from efficiency, product mix – Capital investments target enhanced quality and value • Pharmaceutical Delivery Systems – Deliver the potential of Daikyo Crystal Zenith ® products – Stronger mi
Slide 21: Summary
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems • Strong competitive position – Substantial market shares – Proprietary technology – Diversified customer base – Global footprint – Preferred products for biologics – Long-term customer relationships • Stability with growth potential •
Slide 22: Components manufactured by West and Global Partners
On average, approximately 100 million components manufactured by West and our Global Partners are used to enhance the quality of healthcare worldwide everyday. Global Partners with Daikyo Seiko, Ltd. and West Pharmaceutical services Mexico, S.A. de C.V.