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8-K - FORM 8K - WEST PHARMACEUTICAL SERVICES INCform8k.htm
WEST CORPORATE OVERVIEW
Solutions for Injectable Drug Delivery
CL King “Best Ideas” Investor Conference
September 15, 2010
Donald E. Morel Jr, Ph.D.
Chairman and Chief Executive Officer
NYSE: WST
www.westpharma.com
 
 

 
SAFE HARBOR STATEMENT
This presentation contains forward-looking statements, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are based on management’s beliefs and assumptions, current expectations, estimates and
forecasts. Statements that are not historical facts, including statements that are preceded by, followed
by, or that include, words such as “estimate,” “expect,” “intend,” “believe,” “plan,” “anticipate” and other
words and terms of similar meaning are forward-looking statements. West’s estimated or anticipated
future results, product performance or other non-historical facts are forward-looking and reflect our
current perspective on existing trends and information.
Many of the factors that will determine the Company’s future results are beyond the ability of the
Company to control or predict. These statements are subject to known or unknown risks or uncertainties,
and therefore, actual results could differ materially from past results and those expressed or implied in
any forward-looking statement. You should bear this in mind as you consider forward-looking statements.
A non-exclusive list of important factors that may affect future results may be found in West’s filings with
the Securities and Exchange Commission, including our annual report on Form 10-K and our periodic
reports on Form 10-Q and Form 8-K.
You should evaluate any statement in light of these important factors.
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CORPORATE PROFILE
Injection Systems
Administration Systems
Crystal Zenith Syringes
Packaging Systems
  Premier partner to the pharmaceutical and
 biotech industry
  For more than 85 years, a global leader in the
 development of innovative systems for packaging
 and delivery of injectable drugs:
  Primary closure systems for therapeutics used
 for both human and animal health
  Components for diagnostic and prefilled
 syringe systems
  Devices and device sub assemblies
  Reconstitution and administration systems
  Stable, diverse customer base
  2009 sales: $1.06 billion
  Global footprint that provides sales, technical
 support, and supply chain risk mitigation for our
 customers
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Every day over 80 million West products enhance the quality of healthcare worldwide.
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32 Manufacturing sites
34 Sales locations
Technical centers
Partner locations
GLOBAL PRESENCE
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SALES GROWTH 2002 - 2009
Net sales in millions
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 Global economic conditions unsettled
 Global pharmaceutical revenue growth projected to be 4-6% (per
 IMS) on modest unit growth
  North America growth projected at 4.5 - 5.5%
  Europe growth moderate 2-4%
  “Pharemerging” markets should grow > 10% (India,
  China, Brazil)
 Managing through:
  Impact of US healthcare legislation
  Industry mergers and consolidation
  Changing customer order/inventory patterns: unpredictability
  Currency volatility
CHALLENGING BUSINESS ENVIRONMENT
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$ millions, except per share data
 2010
 2009
Net Sales
$281.8
261.0
Gross Margin
29.5%
30.2%
Research & Development
$5.7
$4.7
Selling, General & Administrative Exp.
$45.8
$45.1
Net Income
$21.7
$19.7
Diluted EPS - GAAP
$0.62
$0.57
Diluted EPS - Non-GAAP*
$0.64
$0.58
* Second quarter 2010 diluted EPS - Non-GAAP excludes $0.02 per share for restructuring charges and tax
items. Second quarter 2009 diluted EPS - Non-GAAP excludes $0.01 per share for restructuring charges.
SECOND QUARTER RESULTS
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 Major items impacting August 3, 2010 guidance
 revisions
  Currency effects (e.g., revised estimate at $1.30 /€1 vs. $1.36)
  Increased R&D spending on new product programs
  Caution regarding profitability on less predictable sales mix
 Comparative results vs. 2009
  Currency (e.g., estimated $1.30 = €1 2010 vs. $1.45 in 2009)
  Unusually strong second half of 2009
  $22 million of 2009 H1N1 sales
Second Quarter Guidance
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 Demographics
 Increasing global access to
 advanced healthcare
 Generic growth
 Requirement for easy, safe,
 accurate dosing
 Combination product growth
 Growth in biologics and vaccines
West supplies sophisticated packaging
systems for the top 20 biologic drugs (by
sales) currently on the market.
LONG-TERM BUSINESS DRIVERS
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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
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WEST’S STRUCTURE
Packaging Systems
 2009 sales: $776 million
 Established leadership
 High market share
 Stable growth rate
Delivery Systems
 2009 sales: $285 million
 Proprietary devices
 Contract manufacturing
 High projected growth rate
Development
Primary Package
Administration
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PACKAGING SYSTEMS
Packaging & Device
Components
 2009 sales: $776 million
 Over 36 billion parts produced
 annually
Proprietary Products
 NovaPure™, Westar® RS & RU
 FluroTec®
 Envision™
Key Markets
 Vaccines
 Oncology
 Diabetes
 Autoimmune disease
 Diagnostics
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 West’s Competitive Advantage:
  Unmatched expertise in drug -
 material interactions
  Market leader in packaging for
 biologics
  Protected IP: Proprietary materials
 and processing technology - Drug
 Master File (DMF) 1546
  Regulatory barriers to entry:
   US NDAs and ANDAs
  require proof of stability
  Global manufacturing footprint
  Global technical support
Pharmaceutical Packaging
Systems
(How drugs are contained)
Primary Container Solutions
  Therapeutic segment focus
  Generate incremental value per unit
  Leverage changing regulatory
 environment
  Optimize manufacturing productivity
  Strategic acquisitions
  Geographic expansion
  China
  India
PACKAGING SYSTEMS GROWTH STRATEGY
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Westar® RS
State-of-the-art
ready-to-sterilize
elastomer closures
Westar® RU
State-of-the-art
ready-to-use
syringe plungers
and closures
Envision
Technically advanced,
automated vision
inspection system
NovaPure
Unrivaled
quality…by
design
HIGH-VALUE PRODUCTS DRIVE GROWTH
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VALUE PROPOSITION
Proprietary
Products
Revenue and
Margin
Opportunity
Disposable Device
Disposable Device
Components
Components
Westar® RS
Mix2Vial®
NovaGuard™
éris™
Westar® RU
Standard Components
Standard Components
Consumer
Consumer
Products
Products
Packaging
Delivery
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FASTER GROWTH of HIGH-VALUE PRODUCTS
Pharmaceutical Packaging Systems
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DELIVERY SYSTEMS
Contract Manufacturing
 2009 sales: $242 million
 Over 100 million parts produced and
 assembled annually
Proprietary Products
 2009 sales: $43 million
 Reconstitution, Daikyo CZ systems,
 syringe safety, self-administration
Synergies
 Marketing
 Engineering
 Project management
 Manufacturing
 Capacity
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  Concentrate on systems for unmet
 market needs
  Build market share in multi-
 component systems for drug
 administration utilizing Daikyo CZ as
 a platform technology
  Production supported by existing
 design, multi-material molding, and
 assembly capabilities
  Expand through innovation and
 strategic technology acquisitions
Pharmaceutical Packaging
Systems
Primary Container Solutions
Pharmaceutical Delivery
Systems
Administration Systems
  Therapeutic segment focus
  Generate incremental value per unit
  Leverage changing regulatory
 environment
  Optimize manufacturing productivity
  Strategic acquisitions
  Geographic expansion
  China
  India
DELIVERY SYSTEMS GROWTH STRATEGY
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FOUNDATION OF DELIVERY SYSTEMS
Daikyo CZ
Insert Needle
License:
Prefillable
Syringe
Systems
Acquisition
of Plastef:
Prefillable
Syringe Safety
Acquisition of
The Tech Group
:
Manufacturing &
Engineering
Established
Proprietary
Innovation Initiative
Acquisition of
Medimop:
Administration
Systems
Licensing of
NovaGuard:
Luer Syringe
Safety System
Acquisition of
PharmaPen:
Auto-injector
System for Self-
Administration
2005
2006
2007
2008
2009
NovaGuard™ is a trademark of West Pharmaceutical Services, Inc.,
in the United States and other jurisdictions.
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2010
Acquisition of
LaMoDel
 
 

 
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
 Injection Systems
Reconstitution
& Transfer
Systems
NovaGuard™
Needle Safety
ConfiDose®
Auto-Injector
System
Eris ™
Needle Safety
Crystal Zenith® is a registered trademark of Daikyo Seiko, Ltd.
ConfiDose®, NovaGuard™ and Eris™ are registered trademarks and trademarks of
West Pharmaceutical Services, Inc. in the United States and other jurisdictions.
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Microinfusion
System
 
 

 
LIFE CYCLE PLANNING
Bulk Drug
Vial Format
Prefillable Syringe
Auto-injector System
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From early phase bulk drug
containment to auto-injector
 
 

 
DAIKYO CRYSTAL ZENITH®
INSERT NEEDLE SYRINGE
  Pharmaceutical company benefits
  Silicone-oil free container
  Tungsten free
  Glue free
  Lower dead space
  Reduced risk associated with breakage,
 waste and potential for recall
  Auto-injector system benefits
  Consistent break-loose and glide forces
  Break resistant
  Tight dimensional tolerances
  Design flexibility of plastics
  Highest quality
  100% vision inspection
  X-ray inspection of needle
  Automated, clean
 production process
Prefillable Syringe Systems
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Phase III
 Production Cell
  4 cavity system (~3.0 MM
 Annually)
  ISO 7 (Class 10,000)
 Scottsdale
  Robots
  SCARA
  Needle Load, Mold off load
  6 axis
  Part off load
  Vision (100% in line)
  X Ray (100% in line)
DAIKYO CRYSTAL ZENITH® 1mL LONG
INSERT NEEDLE SYRINGE SYSTEM
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CONFIDOSE® AUTO-INJECTOR SYSTEM
  Disposable auto-injector
 system
  1mL long Insert needle syringe
 (glass or CZ)
  Reduces risk of glass breakage
 and syringe variability issues
  High viscosities possible
  Hidden needle and full
 retraction for safety
  Simple 3-step process
  Audible, visual and tactile
 indicators
ConfiDose® is a registered trademark of West Pharmaceutical Services, Inc.,
in the United States and other jurisdictions.
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NEEDLE SAFETY SYSTEMS
  NovaGuard™ for Luer connection
  Only FDA cleared passive
 system for Luer lock syringes
  Eris for staked needle
  >125 million units manufactured
 per year
  Market leading safety system
 for staked needle syringes
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Customer evaluation ongoing
Needle hiding
Needlestick safety
Drug product differentiator
 
 

 
SUB-Q MICROINFUSION SYSTEM
  Controlled subcutaneous delivery
 of high volumes and high
 viscosity
  Prefilled cartridge, no need for
 user filling
  Based on Daikyo CZ cartridge
  Compact
  Hidden needle for safety
  Single push button operation
  Fully programmable
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 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 CZ products
  Increase healthcare-consumable contract manufacturing revenue
  Grow proprietary safety and delivery system businesses
 Financial discipline
  Operating cash flow: Discretionary SG&A, R&D and capital spending
 that are supported by revenue growth.
  Deliver returns on invested capital (“ROIC”) that regularly exceed
 weighted average cost of capital (“WACC”)
  Align incentives with financial performance and value creation
OUR LONG-TERM FOCUS
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Strategic Planning Goals:
  Projected 2014 sales of $0.6 billion
  Projected 2014 Operating margin: > 20%
Strategic Planning Goals:
  Projected 2014 sales of $1.0 billion
  Projected 2014 Operating margin: > 20%
Pharmaceutical
Packaging Systems
Primary Container Solutions
Pharmaceutical Delivery
Systems
Administration Systems
 Consolidated 2014 Planning Objectives
  2014 Sales: $1.6 billion
  2014 Operating Margin: 19%
  2014 Consolidated ROIC: 17%
FIVE-YEAR GROWTH OPPORTUNITY
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 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
  Balance sheet strength
 An experienced team
Injectable Container Solutions
Advanced
Injection
Systems
Prefillable Syringe Systems
Safety and Administration
Systems
SUMMARY
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WEST CORPORATE OVERVIEW
Solutions for Injectable Drug Delivery
CL King Investor Conference
September 15, 2010
Donald E. Morel Jr, Ph.D.
Chairman and Chief Executive Officer
NYSE: WST
www.westpharma.com
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