WST - Earnings call transcript Q2 2019 | West Pharmaceutical Services, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter West Pharmaceutical Services Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to introduce your host for today’s conference, Quintin Lai, Vice President of Investor Relations. sir. ahead, go Please

Quintin Lai

Investors www.westpharma.com. provide Eric Green, Good This call. the welcome results We release the outlook in an will update Bernard and on update full and Chris. Company’s CEO, provide quarter for results, this West’s XXXX the on the posted our been an conference issued morning, year has our on morning, at you, the to website and second morning section CFO, Birkett Thank located our review business XXXX. and financial financial

this the Securities presentation of the contain presentation There’s accompanies Law. website. the by Federal a slide within call that statements of forward-looking on statement. section presentation today’s On meaning on and call available in Harbor of and X U.S. is made Safe copy the is Slide the our the Statements Investors management

are These known are company could are or past management’s risks expectations, There assumptions, in implied and forecasts. Because to Company’s statements expressed those results and actual any uncertainties, materially the statement. or forward-looking results that unknown differ based estimates these from of of the on influence predict. the or ability, future factors current many or control beliefs results can and beyond that

list X- which risks from XX-K, K Company’s as non-exclusive any the disclosures subject factors our a further and today’s regarding of actual release, is differ cause to well as reports. For company in expectations, which XX-Q to results to could press please refer it the the makes

EPS. and results provided most to profit, in are and organic financial release. non-GAAP will measures adjusted limitations earnings sales operating morning’s GAAP conformity of make adjusted prepared the In reference Reconciliations addition, the diluted to to including management margin financial during operating adjusted this profit comparable in financial today’s growth, call, measures non-GAAP

West’s turn President, CEO over Eric now and I Green. call to the

Eric Green

us Quintin , Thank you joining for everyone. you, Thank morning, today. and good

of a And quarter place global sales both top delivered initiatives, our organization. release, in efficiency the operations from in of press saw strong you and as growth bottom result we our another team. the As strong across by put lines on gains

Our future are growth details quarters business, with and again, confidence strength of customers take us, our EPS you year. our given we the will guidance shown good our in strategy, increasing the the of two market-led and to later guidance in QX, in sales our Bernard growth behind the performance our positive for has once underlying updated the call. through in full reaction

their of in product manufacturing and High-value to industry increase up performance these the proprietary of the levels Proprietary meet our regulations and products on by customer product our to to X.X% grew our sales of segment X. to new molecules the QX, is of products and products meet the own more productivity These therapies. improve of our strategy and the quality offer customers, grew higher in start seeking with to performance sales the this Slide organic adoption specifics products. XX% double-digits. in biopharmaceutical sales in of Let’s than quarter. high-value demands Key sales make of growth

an let’s within QX, Biologics components. our Westar take our NovaPure Now at growth sales and unit grew the strong experienced a double-digits. of market units. market we look organic and our Sales uptake In of impressive

types newly of this from and of coming existing demand growing product see from growth solutions, biologic drug products. and volume is to customers continue interest We from these for commercialized drugs

technology and coming growth of platform. our We from Crystal Zenith is available drugs CZ SmartDose well also from a as solutions commercially saw molecules. containment both good as uptake pre-commercial

drugs our SmartDose customer in of platform of device levels high stages experience development. to continue all across for We activity

high-value RS a solid of increased was RU products growth led The also Westar unit Generics digit Looking well growth, an this This market performed double-digit market Biologics with the uptake ahead, year had for by and in double-digits. we anticipate unit growing products. unit. high-single market full by quarter

AccelTRA We line. with elastomer are pleased the continued the components, adoption of and product interest our including

also device for safety platforms our we’re with and generics medicines. demand use seeing addition, for delivery In

unit high-single full digit in expect year. We growth this for market the

Our pharma due growth mid-single by the VialXBag market we in to exclude sales. recall. previously a FluroTec unit pharma, experienced decline announced product saw the small led Envision a product impact, we’d and If digit quarter this for

the units pharma to low of market growth. full-year We deliver expect performance single-digit

VialXBag, the bringing product call, last about remain word our quick on back we this committed noted the as to A to we market.

returning they the are and of to We of device, treating. the with to enhanced are the aspects for with redesign market goal product hospitals working certain patients the

sales Let’s quarter. in Manufacturing. medical once year’s business, of growth to XX% majority the prior market, continues again be segment Contract and now drug strong posted the over The our led to of The turn by services. devices, the of of and sales diabetes delivery

segment will the up For of QX high-single QX Contract in expect will we line of this comparisons. the more be as the Manufacturing. performance runs in balance that year-over-year with difficult business anticipate digits of year, We growth the this but sales year against of that and in quarterly growth year, moderate full

last us region. I’d earnings importance Asia-Pacific quarter reach the of Company’s like grow our business to help the in highlights to important now at some on update, Slide review We our expanding X. quarterly discussed from the

South have market, the very We the Korean presence our direct attractive a in acquisition distributor. established through of

example comes for from than reinforcing our can event who hosted this bring China educational to our XXX technical XX expertise customers more Another from the companies we our recently customers sponsored market. West team in

the publishing at work customers to with the our partnering our continues team technical in their shape in at industry, practice field. best presenting and conferences, numerous scientific be of forefront Our to

Safety to concern patients. system recently which practitioners Excellence. designed is needle our a for accidental won stick We’re NovaGuard product also healthcare prevent serious announce India Awards help pleased to two Packaging and that for is This injuries, their

uptake. increased we the seeing Customers and as recognize value are this product of result, a

their is working business to team and operations profitability. our needs, team help are increase driving more As and They safety, higher efficiently. with service quality, to works improve most for better delivery commercial injectable work our our provide for containment solutions customers demanding

number We our through that of management lean off. are pay have a across really the system initiatives organization One starting West to implemented

our and improve are team internal in saw the of standards several made into and and visited address provided knows quality audits. Customers with that to Europe, the recently streamline feedback I effectively. recent at plants has firsthand us feedback processes, improvements customer conclusion have very positive more

restructuring optimize the the XXXX over have the XX the on and our of four announced is QX in will We’re of sites global also manufacturing business for total year-end we to future. broad two years. completed a track significant by consolidate working end will year, reduction in past to network. our By of be provide plants, and program This savings

Thanks result expansion gross both a high-value quarter. the in and of the of Manufacturing profit of achieved our margin and more As points improvements our portfolio, product efforts, basis in margin growth Proprietary than consolidated these to we XXX segments. Contract

time, like over I’d detail Bernard performance. the into CFO, At our turn go more Birkett call to around to to this financial Bernard? our

Bernard Birkett

morning, Thank everybody. you, Eric, and good

I you to performance at and detail. the margin it take improve we growth So and by let’s Proprietary solid how we unit. continuing especially We’ll numbers in Products our in a profits, XXXX. saw through market QX first revenues quarter we XXXX growth the will led Biologics see review continued in saw where strong look the more in

end guidance takeaways. balance finally, some for to In addition sheet XXXX. we’ll quarter And review the

up, First QX.

$XXX.X of Our representing growth net inorganic XX. and Slide points organic recorded and results measures in reconciliation We X recent basis Slides of million, on to financial to are of sales summarized are the growth Non-U.S. described X.X% sales a of acquisition. related GAAP XX XX

We Biologics growth also market Manufacturing sales double-digit unit. units two our saw product Contract growth with in our and of in organic market proprietary in

And of to QX We $XX.X XXX point was our year. or We profit. are gross gross from see last continued same pleased $XXX.X last in million of gross profit margin the basis period recorded above in XX.X% million expansion XX% improvement profit, year.

profit our to same profit adjusted XX.X% in improvements recorded for compared same XXX million $XX.X a period the of operating year from a quarter, last last also margin XX% point with this We adjusted saw expansion operating And increase. basis million $XX.X the period was in year.

EPS diluted grew XX%. adjusted Finally,

points million in Sales show percentage On increases $X.X X.X currency million of And quarter. growth. or and sales contributions X.X X.X growth. driving changes the a $XX.X points. or to exchange contributed percentage points million growth the what’s profit. both Volume we growth $XX.X in and revenue foreign the X, of the mix Slide by percentage or in price So of contributed reduced sales reduction rates

gross improvement in XX.X% price gross Looking and The impact sales mix products products. and profit XXXX. for margin were labor X Proprietary XXXX, was Products product, Slide basis increases gross in at plant of increased by increasing drivers profit shows in the margin high-value margin above the of partially from achieved margin second second efficiency key offset voluntary and quarter Products costs XX.X% the profit continued the focusing VialXBag the of margin points favorable our of recall QX of utilization, XX.X% QX on quarter performance, consolidated up Proprietary XXX XXXX. for of sold,

continue and Contract high-value year organic basis The XXX to basis of XXXX sales margin points points efficiencies. expand manage by gross profit production improved of XX.X% prior margin Manufacturing Proprietary goals. our represented Product profit margin sales Our double-digit on compared operating to we over in execute due profit quarter. year-over-year QX quarter generated as we increased primarily is growth. expenses to as by margin QX products the closely and Adjusted our XXXX, operating second XX% grew XXX gross increase

$XXX.X our a listed increase of the more Slide compared $XX.X we’ve look the how balance have cash flow key cash some period was the sheet cash for X, and increase. XXXX, Operating for review terms business. an million, flow done metrics. let’s at to XXXX Now XX% in of year-to-date On in generating same million we

XXXX Our $XX.X increase to than our Working capital at year-to-date primarily accounts at of was a due XX, million balances. capital ago. spending million $XXX.X XX, receivable higher million year December XXXX, million, than June the higher and in $X.X $XX.X was inventory

$XXX.X than of $XX.X less million South XXXX at balance June purchases distributor cost cash primarily our December our due to stock of for Korea. in of the XXXX the an Our our XXth and increase balance, acquisition in was in common million

Turning to provides level Slide high XX guidance. summary. a

to sales in full net raising between billion billion of First our $X.XX despite $X.XX $X.XX and of increasing are FX XXXX between prior range billion. we billion guidance a the compared be to of and expectation range year, $X.XXX headwinds,

between be previously $XX sales exchange at based rates, to organic of year to which on million compared for expect X% XXXX, sales, net year of full to XXXX negative the $XX full assumes over million. a end reported growth to of of currency guidance of $XX the the a foreign We headwind the sales higher range current X% communicated prior impact

we Second, top are both guidance raising adjusted of by end EPS our and range $X.XX. bottom

range guidance new XXXX to Our year compared prior be $X.XX and will $X.XX, diluted of between for adjusted and $X.XX. the EPS full $X the

some in revenues for are are currency you the and exchange rates, I EPS to FX this as your on elements has review remediation impact Estimated $X.XX. key $X.XX of include point, guidance. not guidance any There of as based adjusted attention our diluted bring does At guidance. compared approximately to our – headwind want guidance we included foreign costs of prior to EPS forecasted VialXBag XXXX in an on

XXXX XXXX diluted summarize than Organic the points growth and improvement, adjusted the performance organic our flow. Proprietary profit operating Manufacturing, EPS growth EPS margin growth and top growth, in over XXX and for X% cash long-term line both of quarter, operating Contract growth to date operating margin gross line for are margin, profit with expansion. greater QX strong EPS year-to-date sales profit in in and To in to and takeaways X% and basis improvement key of projections free sales in construct

to I’d to back the now over turn like call Eric.

Eric Green

our QX strong year. saw QX the performance contributed results we to Thank with to summarize, have a start very you, together Bernard. the To in

value will growth we stakeholders. look to to for drive As strategy the our market-led that we continue remainder our know XXXX, of

scientific to and experts is our field expertise have working top customers. at that We the an and in West technical asset our

the is demand Across and strength look XXXX. customers solutions feel better for market translating invested return to our a products, high-value We in into remainder a capital. of with are increased are all efficient driving those on confident This business products and and forward more we delivering initiatives. of our successful margins cost-effective units, and continued and manufacturing

questions. Chris, we’re to ready take

Operator

first our And William of Instructions] [Operator line you. Kreger Thank the comes with from Blair. question John

Your line open. now is

John Kreger

active perhaps Hi. part about Thanks of bit acquisitions info you forward? and very give is bit little a thinking be the deployment Could much. just should strategy we us little more your a more going acquisition, on capital

Eric Green

South strategy And to at biopharma historically the John, what in it’s the is good have and strengths of across work morning. When would a a one I direct we it with really interaction presence, marketplace we clients direct very acquisition globe. a call attractive to key have Korea, with that that look West’s the our dealer.

So directly our we step-in to and believe that actually is the an Asia-Pacific focus opportunity in market. reinforce

to that technologies will we’ll our we spaces Looking bolt-on enhance ways continue that feel forward types other base. customer to also our M&A at look existing but really current transactions, at of to – look adjacent portfolio, look to support at continuously

John Kreger

is that be then burdened And think I thanks. low-single the also just made VialXBag pharma for recall? year, on clarify, with think growth a digits the Great, you that earlier I will call to comment the assume you of

Eric Green

does that It does year. that single-digit last It’s correct. VialXBag Yes, occurred low include recall the John.

John Kreger

any can be re-launch think product, that when And could great. feasible year? then Great, is you lastly, that for you next sense that something about

Eric Green

guided as possible. have soon And revenues. as resolution it regulatory to towards without with we and working back revenues get authorities any we year’s Well, are the the be again, this VialXBag will working

until we this when regulatory the exactly So can’t on from will be comment affirmation we returning. bodies, have

John Kreger

Okay. you. Thank

Eric Green

Thank John. you,

Operator

from Thank you. question the of And Montgomery comes our Scott. Knight Paul with Janney next line

Paul open. is on please your is mute, now it. line And Your phone if unmute

Paul Knight

quarter. Hi, the Eric. Congratulations on

Eric Green

Great. Thank and you, morning. Paul good

Paul Knight

business, obviously is, Is total we’re approved this from number your is, is systems this lot that last what And though containment gene Can second the in year. side. part of and the you and Is part that approvals talk of gene therapy the in it or – therapy, seeing things pipeline. of last your guess, rate? first the the there’s you from demand? a in on cell and to the of question significant Is a growth cell I seeing in are coming question it year record

Eric Green

due have you robust about today the we growth through. the committed is Yes, coming the we rate that the think to Paul, that order at near-term, if that’s looking book when in – have really and pipeline

that, addition been years a of molecules have to introduced the it’s In market ago. couple uptake in of

XX new molecules, also launches combination a last months. existing it’s So the of but to over XX

role know. play the therapy and gene obviously that it’s in have We comment. A is the On lot as in cell to early here, of too phase a you early to – not the as will – containment of volumes the very important too impacting our it’s therapies, early but not that It’s to And of be is tell. small. but numbers today.

Paul Knight

free Bernard, is how you’ve to utilization. we’ll a that – where cash couple of year where talk you’re I turnover goes? program long it process see and better operating up up us, obviously And of guess, and then capital, noticed the facility secondly, cash capital and facility flow I improvement this of ahead of utilization, in on Could you management I XX% days us consolidation. mean, of about your upon still XX%. that cash early and overall embarked

Bernard Birkett

in it organization multi-year and flow a of number areas. process, focus generation, be big is across cash and we improvements free continuously looking for for will and a operating the It’s a Yes. different

So across on it’s aspects our all just it’s of business. not CapEx,

is As important obviously, to that. focus we believe, for on it very us,

again, areas a cash in our and And in So of we’re that... generation we on flow different focused approach. looking very have at people disciplined and lot it

Paul Knight

your capital maintenance think you What do expenditure is?

Bernard Birkett

$XX between million year. million $XX to a probably It’s

Paul Knight

Okay, thank you.

Eric Green

Thank you, Paul.

Operator

comes question the from Jefferies. Windley next our And you. Thank David of line with

line Your open. now is

David Windley

has stable question. you’ve on number, compress that able Quick capital and been that you’ve growth Bernard is the Thanks. to it’s has the follow-up that maintenance compressed? fairly that something been been last or

Bernard Birkett

lot we haven’t of – compressed been It’s growth capital. a

spending way investing we were in were lot if look we before the that back you think, and facilities a at expanded CapEx. the I

improving the of believe So years. is have, stable lot the been We a we infrastructure the of on have focus CapEx that have the of capacity, number last utilizing and the utilization what pretty maintenance place. we has over we in

clear, are where be to impacting we investing a growth But a continuous lot growth, our and that’s allocation of that’s just invest capital goal. where basis on the we’re in and we not

do difference projects approach, measured current that very invest large this the very, but have a time. it’s to building being So at in we not

David Windley

question showing – still facility do rationalization imply decline so similar already a that just yet margin offline, us? in you’re clarification. growth operating theme, and in my Good operating were gross of driven that great. by way, doing. any sacrificing was kind you actually seeing was margin, are budget Is where the improvement margin at facilities in Yes, that’s is And those the But the quarter, intend or A front that to in all. are coming an up of as that you the not nice some from?

Bernard Birkett

still the to see in of the be will front Beginning next we’ll of the that’s it through. XXXX, benefits Yes, rationalizations number of us. Again, coming in start over years.

through So in the growth, a is and which drivers and globalization coming a key And that for us overall quarter, back And lean we on that supplemented of in of utilization our Contract improvements this lot also the important operations. initiatives aspect continuing, right was improvement implementation been saw, seen that’s that’s by to seeing expect strategy now now been with margins and gains track. the again in and see that’s in productivity plus we is, been a plans Manufacturing. the and we’ve the that of we’ve HVP

drivers margin for there are operating expansion. a So of overall number

David Windley

And on comment Contract on improve your Manufacturing, year-over-year. did

of point? was last quarter kind year second low the the think of I

Bernard Birkett

Yes.

David Windley

the levels? describe improving now you XQ business are you trajectory could the basis trajectory prior to that just XXX highs still achieved. on the that or points a for levels above steep that How might fairly those Is think I

Bernard Birkett

That’s correct.

of into expect we for year the improvements XXXX. the and to continuous see improvement would the remainder So,

I going but within it’s of some believe levels manufacturing XXXX, As happen within we changes business. get back to made that contract to don’t business. we have margin gross XXXX overnight, our

within taking of to there, an an lot come from little through improvements the our Contract overnight operational and a time. view point the bit of see We’re a not and Proprietary that we’ve Manufacturing it’s had take and Business learning’s within of division it those but starting we’re our applying fix will

sustained a there in, but see improvement. and be will you’ll continuous So phased

David Windley

been, of Great, the in at into segmentation of this bring able CEO. I of I your from Eric, pleasant – one, kind to think surprises generic you to buying thanks. products question, one end you The And joined market are up clients may of on one. that’s this be your last the when kind high-value

clients those of be are products at be trading, of of for really your financial impacts for diversify little duress, Some it’s a some that them, presuming yourself way these, but low point, maybe – you under one impacted? a a a way seems to really, is some, event prices. there of Is or to demand not what you do there think the all of yourself stocks in – it’s at protect all? financially bit that one And more negatively might this

Eric Green

good a it’s question. within is your that the generic point we space. diversified And Yes, are to

with components broad system, the by We higher. the day our the as our array the out up about and taking the adoption their retool with of adoption launched So recently the one-to-two generic in moving the it high-value at clients, we the to high-value AccelTRA though them even they’re frankly, end to program. we’re takes slightly of think which to continuously packaging is and work rates would move operations, of have we their today. ASPs standard products years get stages generic from say early the products customers players I leveraging cost

better see another. say it’s if good prior up molecule summarize drug down driving of And continues though finish, their drive would and of there the are cost why – by I typically diversify, we’re picked overall a to total So yield cost to a with we assurance them fill by that’s this our is we supporting issue in client, better be that and do particular we diversity. situation with one cost. the their ownership, given manufacturing market, bringing final to that

David Windley

you. great. Okay, Thank

Eric Green

Thanks.

Operator

DeBruin you. from our question the next Derik with Thank Bank comes America. line of And of

is open. Your now line

Juan Avendano

is quarter, Congratulations Avendano This Juan Hi. the on for Derik. guys.

Eric Green

Juan. you, Thank Yes.

Juan Avendano

China. us embedded is situation My first plus tell X the you question your is, guidance? evaluated your market? revenue fully and XXXX Chinese impact can what generics generic you give exposure program us you in the on thoughts from the this potential through could is Also the revised any Have in if X

Eric Green

when you at This revised Juan, look Well, by not being China. driven is our guidance.

business impact So larger roughly and a in localities is West either way, X% that. and are generics. exposure in don’t X plus is of also total in the Japan, the Southeast portion and – refer is business to the and last India Asia. Asia lot – we that have does China But of not Chinese China, we a we about the to market, year a Obviously, of current our have Pacific X our a – local

and market export. or the seeing seen pharma very the into in China. be that market in use where growth growth The so is growth either really generic for consumption the we’ve we’re of into in two to Our and most less of us the areas pulling out space is the biologic, manufacture in they’re able multinationals investing, local them we’re the to that and the

Juan Avendano

the year growth. pharma expect the And single-digit full second is, you for low my Thanks. organic business still good. XXXX, question then Okay, post to

of I in pharma year I the difficult. would growth achieve need at in given estimate this, is in think the least prior the single-digits to high next be in a that quarter the comp that to order XQ

risk And strong in so quarter downside rebound this? what in the fourth the and in confidence business to what gives you pharma the is the

Bernard Birkett

regarding XXXX look in VialXBag you that fourth large quarter from So had a if perspective, comp credit a recall. the the we of at

XXXX the sector. pharma So, QX in that adjustment within

within comp year you we’re perspective going single-digit QX... that’s this to within the growth the high how it from growth when So see

Eric Green

pharma. Within

Bernard Birkett

pharma. ...within

Juan Avendano

last right. my I Good. question And All then if may. Okay.

one the backlog XXXX. encouraged the of are of for year towards in the committed the growing Was phrases I’ve are that the raising of in you guidance interest orders. reasons by you One release that full press that my why piqued

quarterly provided could You wondering, backlog billion. the but was basis a – number provide that second of less quarter? than absolute year, last you on it $X.X what as I was What this used dollar was the that only value if us what before, the over tell annually. have of is to year-to-date if it’s you

Bernard Birkett

of exact out number the the growth same that a we’re instead the year. calling is our what compared seeing Well, large to in last book time order

as we’re seeing we’ve book been strengthened So been the the that’s as through year. order going and happening

happened once, use it just to be raising guidance. and So to hasn’t all at that the gives us able support confidence a for and that

So in market. that strong we’re the seeing fundamental growth

Juan Avendano

Okay. Thank That was it. you.

Bernard Birkett

Thanks, Juan.

Operator

And you. CJS last line comes question our Larry the Thank with from of Solow Securities.

now is line open. Your

Larry Solow

congratulations the impressed Great. good very on really a guys, Thanks, side. quarter and margin and on

Just really to of start backlog mentioned the sort – remarks improve there legacy on this your some not products. – start Eric, would lead new in of growth guess you Part was I are supply backlog. to you on products, and skewed the quarter your you higher summary last of some and products, some of transitioning it but few improved products. seeing think and improved on that existing questions part sort you only been the start of eventually, as on overall know to lot. prepared value And seeing – our have times to the guys a and most as was years them throughput I obviously thesis down came I that significantly few answered, related in a your that of

the products maybe move inflection of and at point, seeing So sort products or older in least not to are transition starting high-value chain you up the older but pharmaceutical area?

Eric Green

we a committed Larry, the would the that and were in from lead earlier, am the as And on driving we’re demand times the today three that is the driving uptake. very that, that or a globalized we have that I due years operations. seeing healthy times operations. – is ago, convinced our mentioned say, operations operations spent to increase not little – in we initiatives and is two of about the Yes, hand service the lot a customers. there when quality, order delivery to have, lead our we the talking in at really and bit is of book, we very Today, time lead look our Bernard orders our focus driver I our

So if you hear over years. seeing there that of really hasn’t point – really the planned or spoke that are and in combination product have two been new last near is will and launches of change we’re seen The this a at in you’ll we’ve one quickly demand volume mostly future. be of planned to the the the improved marketplace really our that customers, been any drugs performance existing –

I a growth we’re us maintaining when to I’m very the segments pipeline. the across showing going that underlying we shows seeing, the this rate one new just has this than with small the and molecules not capturing if the new in is this, encouraged of health because pharma, we’re is share, products and see me, market but biologics it is by healthier not that segments. through This all of markets different the Obviously growth share serve.

Larry Solow

now your products. mix steam, is products pick seems of it is, but that that of high-value I Is represents also you’re up know, I some like starting sounds high-value like but rising, guess, fraction say? it’s because small within to that to eventually other really it to in And fair terms it’s right. mix, relative like a overall of of NovaPure still pretty penetration All

Eric Green

molecules spoke two commercial about the the NovaPure. was drug past, in marketplace. them areas one you you talked adoption the of look Right. We’ve at If get but we if that in that into that we, is now

same Crystal the seeing thing with We’re the Zenith.

the growth meaningful becoming these and numbers And more now so it’s quite is significant.

and don’t area product portion Those growth, line. with CZ out we contributing two a helps to each biologics side, in in So in the of pharma particularly areas the of a alone out helps while are bit the also specific little give good numbers the side.

Larry Solow

commercialized And there new how that a or the be today you more on question. any the without more years or side? great. also from Could maybe CZ have give my color us lead color primary many quantifying couple you Maybe would changed last next little something of into products

Eric Green

Yes, CZ we’re is being in number what you’ve that the three of the products – are about on seen launched and side is commercial XXXX.

will where So increasing of the our our facility. great are that’s into Scottsdale, needle incremental as and in and for needle and this to X manufacturing our also capital internal these produce obviously area is in done our in That’s we’re particularly X also frankly and mention demand our causing Daikyo by up a I about work specifically are facilities, earlier Crystal capital. talked are and This also specific in lines insert the as won’t but line more customers Arizona we insert the around scale too. line, Zenith actual both Bernard we engineers our NovaPure additional that investing and build ml customers launches, cell partner is ml get their not where invest

Larry, very it’s seeing So, These it encouraged off and the we’re it. uptick starting sort to – by we’re in are really seeing and now pre-commercial development. of take

Larry Solow

related operating miscellaneous just was then last Bernard, in for And there to? credit, question guess, the million line. $X.X What’s just income that the, one Excellent. the on I

Bernard Birkett

FX.

Larry Solow

It is an FX.

Okay, great. Thank you.

Bernard Birkett

Larry. you, Thank

Larry Solow

you. Thank

Eric Green

Larry. Thank Great. you,

Operator

Investor to question-and-answer like of today’s turn now back any Thank President you. And call concludes session. Quintin this for remarks. Vice to Lai, would the I Relations, further

Quintin Lai

the will thank www.westpharma.com our at on the you And section. call. on online broadcast An joining Investors us today’s conference archive available Chris. in of Thanks, be website everyone for

Additionally, a get at That August through and the concludes by you dialing nice ID today’s end release. conference the numbers of earnings and replay have the call can day. provided Thursday, X a

Operator

does participating for today’s and This Ladies you in gentlemen, conference. program. thank conclude today’s

disconnect. Everyone great day. may You a all have

West Pharmaceutical Services (WST) 25 Jul 192019 Q2 Earnings call transcript