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
UBS Global Healthcare Conference
New York, NY
February 11, 2008
NYSE: WST
westpharma.com
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation
contain some 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 plans and assumptions. Such statements give our current expectations or
forecasts of future events; they do not relate strictly to historical or current facts. We have tried, wherever possible, to identify such statements by using
words such as “estimate,” “expect,” “intend,” “believe,” “plan,” “anticipate” and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance or condition. We cannot guarantee that any forward-looking statement will be realized. If known
or unknown risks or uncertainties materialize, or if underlying assumptions are inaccurate, 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. We undertake
no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
Important factors that may affect future results include the following: sales demand and our ability to meet that demand; competition from other
providers in the Company’s business, including customers’ in-house operations, and from lower-cost producers in emerging markets which can impact
unit volume, price and profitability; customers’ changing inventory requirements and manufacturing plans that alter existing orders or ordering patterns
for the products we supply them; the timing, regulatory approval and commercial success of customer products incorporating our products and
services, including relevant third-party reimbursement for prescription products, medical devices and components and medical procedures in which
those products are employed or consumed; the ability of Nektar Therapeutics to market the Exubera® Inhalation-Powder insulin device and product and
the resolution of the parties’ obligations under the supply contract between the Company and Nektar consistent with the Company’s current
expectations; average profitability, or mix, of products sold in any reporting period; maintaining or improving production efficiencies and overhead
absorption; the timeliness and effectiveness of capacity expansions, particularly capacity expansions, including the effects of delays associated with
construction, availability and price of capital goods, and necessary internal, governmental and customer approvals of planned and completed projects,
and the demand for goods to be produced in new facilities; dependence on third-party suppliers and partners, including our Japanese partner Daikyo
Seiko Ltd.; the availability and cost of skilled employees required to meet increased production, managerial, research and other needs of the Company,
including professional employees and persons employed under collective bargaining agreements; interruptions or weaknesses in our supply chain,
which could cause delivery delays or restrict the availability of raw materials and key bought-in components and finished products; raw-material price
escalation, particularly petroleum-based raw materials, and our ability to pass raw-material cost increases on to customers through price increases; the
development, regulatory approval and marketing of new products as a result of the Company’s research and development efforts; the defense of self-
developed or in-licensed intellectual property, including patents, trade and service marks and trade secrets; dependence of normal business operations
on information and communication systems and technologies provided, installed or operated by third parties; the relative strength of the U.S. dollar in
relation to other currencies, particularly the Euro, British Pound, and Japanese Yen; changes in tax law or loss of beneficial tax incentives; the
conclusion of unresolved tax positions consistent with currently expected outcomes; and the timely execution and realization of savings anticipated by
the Company’s restructuring plan announced December 12, 2007.
Exubera® is a registered trademark of Pfizer, Inc.
Safe Harbor Statement
Founded in 1923
Headquarters in Lionville, PA
Company Overview
Who we are
World’s premier manufacturer
of components and systems
for injectable drug delivery
Closure systems and prefillable
syringe components
Components for disposable systems
Devices and device sub-assemblies
Safety and administration systems
Estimated 2007 sales > $1.0 billion
Market cap $1.2 $1.3billion
Diverse, Stable Customer Base
Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Key Developments - 2007
Daikyo sales and technology agreements extended
to 2017
Raised $161.5 million, 4% convertible junior sub
debenture
Announced stock buy-back of up to 1 million shares
Pfizer exited Exubera®
CMS reimbursement changed for ESA drugs
Tech Group restructuring announced
China land use application approved
* Exubera is a registered trademark of Pfizer, Inc.
($ millions)
Strong Sales Growth
Core Business
Acquisitions
$107
$227
Global
Revenue
Breakdown
Based on 2007 estimates
South America:
4%
North America:
50%
Europe:
42%
Asia/Pacific:
4%
Market Dynamics Support Continued Growth
Aging population creates an increasing number of patients with chronic
illnesses such as diabetes and cancer
Biologic drugs (2006 Market: $56 billion*) continue to grow
Biologic drugs represent the fastest growing segment of the injectable
pharma market (13% CAGR projected through 2010)*
Injectables currently account for ~15% of the global drug delivery market**
Resurgence in vaccine research and development
China and India’s economic growth and growing demand for advanced
healthcare
Point-of-care shift: Hospital Specialty Clinic Home
Innovation initiatives address market opportunities
* Source: Datamonitor
** Source: Arrowhead Publishers
Four Strategic Growth Platforms
Advanced Injection Systems
Injectable Container Solutions
Prefillable Syringe Systems
Safety + Administration Systems
West’s Competitive Advantage
Unmatched experience/expertise: drug-material interface
Ability to source components from multiple locations globally
Protected IP: West’s components and systems
Regulatory barrier to entry: NDA and ANDA filing must include
reference to all packaging/components in contact with the drug
1.
West Drug Master File (DMF) 1546 is confidential
2.
West DMF includes functionality data (multi-year studies)
3.
All primary package changes require new stability/functionality
studies for new filing
Engineering expertise in high-volume manufacturing and assembly
Growth Platform 1 – Injectable Container Solutions
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
Growth Platform 2 – Safety and Administration Systems
Vial2Bag™
Mix2Vial™
MixJect™
Total Market – $1.5 billion
CAGR – 11%
Source: Greystone Associates and Company estimate
Project Orion
Market Dynamics Support West’s
Continued Growth
Increasing number of patients with chronic illnesses such as
diabetes and cancer
Increasing demand for biologics 2006 Market: $56 billion*
Biologic drugs represent the fastest growing segment of the
injectable pharma market (13% CAGR projected through 2010)*
Injectables currently account for ~15% of the global drug delivery
market**
Point-of-care shift: Hospital Specialty Clinic Home
Innovation initiatives address market opportunities
Emergence of delivery systems that combine the primary
drug container and delivery platform
* Source: Datamonitor
** Source: Arrowhead Publishers
Convergence of Primary Containers and Delivery Systems
Auto Injectors
with Cartridges
Traditional Injection
System
Components for
Pen System Applications
Growth Platform 3 - Prefillable Syringe Systems
FluroTec® Plungers
Needle Shields – Tip Caps
Daikyo Crystal Zenith®
1mL LL Prefillable Syringe
Daikyo Crystal Zenith®
Staked Needle Syringe
Estimated Market Size – $900 million
CAGR – 8%
Source: Company estimates
West Advanced
Injection System
Platform 2
Staked Needle Prefillable Syringe
Growth Platform 4 - Advanced Injection Systems
Plunger
Primary Drug
Container
Lined
Seal
Platform 3
1mL Flanged Cartridge
Estimated Market Size - $210 million
CAGR – 8%
Source: Greystone Associates and Company estimates
Grow revenues and earnings despite reduced sales of certain products
Fundamental growth will offset lost revenue associated with Exubera, ESA drugs, etc.
Market segmentation and therapeutic category management
Lean operations
Sales mix shift toward higher value products
Generate Tech Group performance improvement
New Grand Rapids facility recovery from 2007 relocation and expansion
Execute restructuring of operating footprint
Shift product mix: focus on healthcare and proprietary products
Effectively manage global capacity expansion
Monitor relevant changes in demand, lead times
Timely availability of increased capacity
Continue investing for the future
Innovation programs
Begin to commercialize leading innovation programs
Geographic expansion plans - China, India
2008 Management Operating Priorities
Summary
Fundamental business drivers remain unchanged
Opportunities for growth remain very attractive
West’s competitive advantages uniquely position the Company to
capitalize on growth drivers in key market segments
Solid balance sheet
Seasoned, experienced Management Team
- Incentives closely tied to growth in shareholder value
Year-end call and 2008 outlook – February 21, 2008
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
UBS Global Healthcare Conference
New York, NY
February 11, 2008
NYSE: WST
westpharma.com