- Earnings call transcript Q3 2022

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Operator

Good day and thank you for standing by. Welcome to the Q3 2022 West Pharmaceutical Services Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Lai, conference Relations. Vice like speaker to now Quintin today, President would hand over the your I of Investor go ahead. Please

Quintin Lai

our disclosures XX-K, here. the other subject, including could materially any is to as made X-K management many by statements results are and an quarter financial on XX-Q the and and XXXX federal to risks Eric Birkett financial is the on Please release Thank to has On control harbor in Slide are This The year XXXX These section law. business, that accompanies statement been update issued made well company's forward-looking and in on to morning, morning, securities for from and estimates outlook the Good our of is the meaning on is release results, website financial the our by reports. XXXX X There well results of Investors will as located refer in future as copy that past Statements third presentation our westpharma.com. within Actual section expectations, provide contain our morning, the presentation an Investors you, implied and Bernard it today's of update We available today's our company's on the full differ a by the forward-looking conference influenced those review Green expressed assumptions, safe our call based a beliefs this statements outlook. statement. factors forecasts. and accompanying company results which provide a and posted our beyond U.S. call. the website. call of any current or slide the Gigi. presentation West's of as made introduction press and welcome an preliminary at regarding results this company. on

adjusted Reconciliations make release. results the adjusted financial will including earnings limitations operating EPS. diluted measures, organic in are prepared turn morning's reference I'd to our non-GAAP and financial management CEO, GAAP measures net the now most Eric conformity Green. today's to this call in sales, of adjusted and comparable profit, margin operating During call, over provided the to financial to non-GAAP profit

Eric Green

you, Quintin, Thank X. morning, Slide for covering We'll I'll three than on results. QX Thanks and main lower begin by good examining first, us joining everyone. topics, drivers start of expected the today.

market QX, and the third, outlook demand examining for providing sales color current and XXXX. preliminary impact projecting a view Second, to on of our

Let's QX. begin with

a in headwinds As year. COVID-XX-related sales few manufacturing, quarter the If grew COVID, exclude that expected, had we sales had of materialized. million over XX%. drivers contract declining We FX. from sales a had decline had we from we proprietary in headwinds $XX and organic the last in about from We

demand. However, expectations we production dedicated this earnings the would products performance provided are that be we to formerly for the quarter. increased When to call, to we was HVP below that our on resources, other pandemic-related able experiencing projected shift QX guidance

complexity customers, as now sites. our impacted throughput throughput stoppers situation productivity Much This are Instead, to were mix capacity of HVP transition QX. the as of is drugs addressing strong and NovaPure manufacturing underestimated numerous and with a fewer progressed, were Specifically, setbacks we sales of combination progressed, productivity. equipment. our because transitioning across successfully $XX to result compounding When equipment of through further, HVP The to more end from the net organic lead in in delays the constraints of shift NovaPure to estimate we to for to of plungers, lower HVP numerous orders SKUs. and originally downtime These a We vaccine QX longer negative orders SKUs. network. transitioned base and customer to related this series times. capacity for double-digit HVP And project and existing pushed installation this underlying XXXX year of plungers the going fewer related through the diseases coming quarter quarter fulfilling our plan with to network we the two address reduction but in operating impact high this total guidance accelerating addressing our HVP drivers factors by customers enabled were demand and our we QX had with requested processing customer million. that the was and a

issues continue will resolution While expect as these we and full to in impact QX. us they temporary see in XXXX,

while As we we full grow capacity, will million sales. we come also we that based online install running still to QX, ex-COVID the processing to project from able and look the XX% base capacity in our in Since items offset already address at demand $XX newer time time the not year more the expected COVID-XX next technology. additional unable we line expect at HVP additional validate early Altogether, to the are long capacity coming reduction on constraints, in we QX. will business be lead than to are

and want supply-related are While our rest we're I'm demand to forecast that all stress disappointed for issues of lowering that not I related. the XXXX, these

X. Slide Moving to

grew XX% book COVID-XX-related demand excluding year-over-year. robust order of Our declining committed orders,

drug And to on Our to reiterated several customers notified have NovaPure the West have growing book plungers of us demand. launches. they're beyond potential drug and that the especially looking current address that to components we demand, deliver for our critical have injectable based upside future devices customers order

XXXX, at the expect our on customer timing, in a projections. Taking As capacity expansion and capacity at early look following includes are delivery year. resolved the XXXX be reasonable we issues of will view most preliminary the confident and look we

believe trends booster sales million a This sales will we XXXX COVID decline $XX a assumes which current to decline of approximately we on customer forecasts, First, current assume is XX% full from that demand. a now of COVID-XX or continuation year XXXX. based and

in to by double in of expect the teens overall to the products low financial and to non-COVID-XX CM excess we and biologics, X%. rebound digits in of growth year. proprietary are expect our to to next led grow Base construct sales grow X% base expected We business

in new approved rate the molecular strong. and recently in remain entities participation U.S. Europe Our

sales sales. by it that approximately Daikyo, despite our partner, almost the are of expecting in components biologics our an have West small approved together, XXXX or we anticipated majority positive all in Adding decline and Our and view $XXX of COVID-XX XXXX, far prelimited molecules biosimilars approved. so million will of organic growth is all

on in detailed call We guidance February year. more will our QX provide of next

Rico Slide quality the first recent their to thank to continue value meaningful members team patients' in from hurricanes our plants I customers quarter. minimal to X make Now Puerto solutions focus lives. this An to highlights that on to product some and ship want to was through purpose our resiliency impact. example produce shifting devastated products the response and high Florida. a the of the they to superior difference and personal evident to our dedication continued impacts Despite to to deliver with who and and ensure members, team our

to team. Just the West strength One our another of testimony great

infuser, earlier technology. at-home This FDA-approved management share to drug our four scPharmaceuticals, FDA strides customer, make West for that SmartDose us delivery this received FUROSCIX to drugs of technology. diseases. month, utilizing on-body opportunity good continue pleased brings approval I'm via our the We improve to with using on-body to delivered SmartDose

with Our use along. to that Ready NovaPure packaging QX West for System anticipate customers. sterile system stoppers glass strategic vials, in is ready with be Corning with to collaboration moving use XXXX, will available We Valor Pack a

in-person at of delivery and Lastly, with Conference devices. our West upcoming and back quality drug insights recently be technical experts portfolio held our to and across our worldwide new developments high showcasing are CPHI pleased scientific PDA leadership

Moving X. Slide to

in expansions the the we With initiated capacity continued to investment of to initiated earlier and year. tranche our next of larger the XXXX forward capital the expansion, investments this XXXX spending complete installation drive for

You the expansions our are can of see ongoing sites. how pictures across from impressed the

progress we HVP units not investments result for components. do they expect increased all billion capacity our are happen making these good will of in and several While overnight,

to the call Now, I’ll Bernard. turn over

Bernard Birkett

and you, Thank good Eric, morning.

generics So performance biologics growth detail. organic we profits, look let’s and in our numbers digits where and review more by sales mid-single first our XXXX XXXX to profit some the takeaways. in drivers as We’ll revenues sheet well at led take in an quarter QX provide will I the saw balance as the update units. will guidance. you through And market finally, we

First up, QX.

on recorded net financial Slide are to summarized and of Our GAAP are of sales results representing $XXX.X described We growth non-U.S. XX. of organic Slides million, reconciliation in measures X.X%. sales X XX the

our across proprietary mid-single in and the proprietary Slide organically XX, sales quarter. QX. made digits product up products the value which in Looking in High by grew X.X% market generic quarter, grew had approximately and XX% growth of products, sales units at biologics

biologics performance digit market the delivered unit of Looking at the market mid-single units, growth.

who work West using high-value also digit to of with growth and continue led components. We unit mid-single many Daikyo biopharma products. experienced sales are by market The Westar generics customers biotech and

point period high-value $XXX $XXX.X million Our X.X% diagnostic year the margin due We X% same QX profit in pharma last increase adjusted was or margin We and to year. recorded Westar quarter a gross profit adjusted decline declined of X% last led reduction this million the our components with And and million a last in for including $XX.X of point of period our year. was record million low same gross digit year. sales the by contract XXX of same with third XX.X% profit, at products, market XX% a growth And in from operating sales basis compared are for manufacturing XXX quarter $XXX.X from basis devices. period NovaPure in saw last units to components. increase profit below single the a

$X.XX by declined and excluding approximately EPS EPS $X.XX diluted increased quarter. stock-based in our currency the adjusted QX, EPS impacted tax negatively by Finally, approximately $X.XX benefit foreign for compensation

quarter. we drivers or $XX review in let’s in performance. million decline the Slide the Volume show sales million approximately price quarter. $X contributions decrease and X.X in approximately contributed quarter $XX.X COVID revenue the by the the percentage to On mix points net in profit increases million of XX, So decreased in Sales the and sales. both

Foreign headwind in quarter. on the generated currency $XX.X approximately revenue million

Contract and overheads transportation. as to points decline our gross at offsetting QX sales shift was on in on due third basis factors. mentioned led were well in profit period XXXX. fees XX.X% in – which margin above lower increases mix anticipated in manufacturing few of production margin plant Looking achieved to QX the third points gross from benefit was led of a customer caused in our in by was products these pressures in for XXXX basis COVID delays attributed certain bottlenecks headwinds of the costs, XXX Partially quarter XX.X% inflationary performance, in margin of profit increases production than margin achieved increase Delays the projects, labor, agreements. margin proprietary largely to of shows expansion basis Proprietary with demand, margin consolidated price of XXX profit margin from impact price certain in down continued than key is quarter a demand a raw associated third supply including of greater the our XXXX. the customer equipment XX XXX The above, XX.X% third to points the profit margin efficiencies. as XX% margin gross quarter The gross XXXX. Slide and quarter products meeting one-time materials,

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

nine Our flow months from capital in cash working benefited a operating the period performance.

payable. last XXXX in of capital XX, from capital million reductions quarter higher $X.XX September XX, at in December approximately our and primarily due $XXX.X period the year. same XXXX increased billion accounts by million, was third XXXX, spending Our $XX.X increase million inventory than $XXX Working year-to-date to

higher is balance. The principle Our XX of by September lower a CapEx our scheduled in million cash operating offset December and than of and primarily repurchase $XX.X was share decrease program, balance in interest due our period. XXXX million the the third cash to our in cash payment $XXX $XX.X flow million at quarter debt

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

our are fourth year We to expect a XXXX sales range million of compared of and sales $X.XXX net There our to estimated $XX $X.XX to based billion in billion rates. range be billion. net guidance quarter $X.XX current full exchange headwind and guidance on updating is billion foreign prior an $X.XX

approximately XX%. be prior to guidance compared growth sales of approximately organic expect to We X%

guidance We stock-based compared full month of XXXX of are guidance revised EPS a guidance prior a Also our This $X.XX $X to updating from guidance. key our benefits $XXX the includes the expect $X.XX during range year million elements $X.XX our our Estimated bring to approximately as on $XXX compensation adjusted to be to $X.XX. your range a EPS $XXX year. to in of you for impact we the million EPS was prior million in of diluted are tax headwind period. compared headwind. positive attention nine to to $X.XX CapEx some fourth to I FX to review want quarter estimate There

turn call year Eric. guidance. benefits our sales million $XX to the stock-based expect I related We sales, to over excludes from COVID-XX tax from lower our now future prior approximately to full unchanged back XXXX be compensation. like than would And guidance

Eric Green

focus, on is looking XX, our summarize to To we value Slide sharpened continue growth to Bernard. you, bringing customers. ahead ensure a our with Thank strategy

book order committed robust. remains Our

We continue our growth. in Gigi, operating of continue And globalization to to and meet ready anticipated Thank the to operations and capital delivering the network take we you. complex we’re current the this capture benefits environment. our investments to drive across questions. future of forward products

Operator

comes first Knight the question of Paul [Operator from Instructions] line from Our KeyBanc.

Paul Knight

Hi, Eric.

demand? lower now $XXX equipment? CapEx, the that CapEx a see signal it’s you verse On million Is guidance? $XXX is What’s million lower to million that that behind getting difficulty it $XXX prior

Eric Green

capital a projects. Yes. longer CapEx build really equipment delayed One two of guidance and that’s couple up of been instances also is Paul, the is duration lower in things. delivery

that we’re really today. the We our need we So to in not demand. as the place get demand in caught the still up seeing impact, to capital have hands

Paul Knight

a are recent the also being customers of out those huge seen on terms mentioned – some in few also large there surprising prescription you Are and these then to side. And customers seen that of plunger many Are in also some that transition the COVID the we’ve from of approvals. some you prescriptions trends market?

Eric Green

of That’s area, biologics – the drivers customers. our is one Paul. in we’re out Yes, healthy seeing than order anticipated with the book. that order And of growth we the committed size working particularly

Paul Knight

that the where And be made? last plunger on side, product will

Eric Green

to constraints The high-value plants. two really have Jersey we probably now right that have here States, key and we as working speak. in Well, are have currently five product resolved United Kinston most and that the Shore, the we’re

Paul Knight

Thanks. Okay.

Eric Green

Okay. you. Thank

Operator

Solow the Instructions] from from Thank Our you. comes [Operator next question CJS Securities. line of Larry

Larry Solow

numbers I morning, Thanks some sort just little guess, I trying just first – a for your Eric little some obviously management guys. terms issues. of surprise of to skewing Good you looks time question, a of your gauge bit I customer at in is outlook questions. the of confidence but inventory taking normally the a Obviously, know little a and give year, guess this to preliminary of is like capacity bit level.

like for Is you next had sort today? felt you Just in confidence that period? – curious Or a extra revenue like of that like short-term little what looks a just pretty to the nice clarity bit of challenging a on your side. good you confidence guidance put give gives of out year, kind it level today some to

Eric Green

thank you for Yes. the Larry, questions.

has products, seeing would think than been But our we And a to in there’s two the that other particularly quite it little say comes the give to One you inventory argue fluctuation, That about months. management, our that So inventory where our on. COVID-XX products, for been part we’re when I only lower insights there’s volatile to think around anticipated. faster would I has of is, you not several transition demand high-value things vaccines. management. when volume the bit base, is business about last

the more to running for recently, with customers have and and us really we meeting get being worked keen that’s installed just are and the very they of equipment fact, that alleviate on to currently In validated up bottlenecks today. some

went wasn’t lead had So of But our we at in orders by as that the order COVID movement. our management were had the on the driven did, major large see a demand to say times make therefore, XXXX, that time, were was in any because I visibility XXXX. script that and customers that the we clarity, to fashion. committing any in did we don’t driven early by we extended we that timely inventory for We however, through

giving Now, the give to on current giving give that’s second we’re of high part on seeing or degree of what think the confidence. and the described with second what part visibility I a sales, to capacity just important about guidance – installation Larry, visibility context into XXXX with going demand it’s we

Larry Solow

it. Got

sounds customer there’s doesn’t it’s that to a real continuing out appreciate like just no color. are feel it capacity. like you obviously supply I it No, no it completely – of guys and And build feels that a in – ambiguity? Is sounds like change, you’re fair issue. like terms to demand Okay. It say,

Eric Green

Yes, Larry, that’s fair to say.

shorter long we year, transition very to been we delay be this of ready we’ve as caused example. that go from productivity. discussing had equipment to which as stoppers that So halfway NovaPure runs the intended NovaPure plungers an runs shift, The as mix that’s of to that of lack is through

in to running, a And in will that’s and up so we those good timely once position a fulfil orders fashion. be

Larry Solow

or high with coming higher overall What you little do a – margins that happen? Okay. guidance. ready you to little margin know Bernard. high guys not outlook, But And of perhaps growing? revenue And right margin very just giving I to level. could Is just kind last Could needs think probably flat go COVID, are Great. wrong? full feasible? for revenue in of early a you what level Although question keep terms from on down

Bernard Birkett

Yes.

number margins our in everybody margin, really monitoring timing the closely, But Just usual call on February. a are moment. earnings our like on things QX that else at just on here on we’ll there color we are the of provide the and more

We’re much make really looking monitoring right we’re of the in on costs. the for that spectrum early volatility in call at call then out it’s we’re topic price to second And across inflation increases to is early looking today. year, that it’s to figure materials, costs And too And going it’s given make labor. secondly, next for a thirdly, our inflationary again, those. that then especially and how settle a process of many the in FX the of energy, light – we’re rate to for XXXX, seeing early on the around preparing

evolving. that’s So

the we’ll generate point, how at online demand extra to so fast fourth HVP can then, again, examine And sales. demand we that get currently capacity – those

a if profits can margins associated to there we have But HVP in So these our the our with come our that do sooner around that moment. we upside with the at guidance, mean, looking we’re decline manage that offset to HVP through it than that. business I issues lot will and sales of and there’s to again, growth base C-XX.

is positive the seeing demand increasing particularly Eric plungers that for around there is, just us So, big is mentioned. demand products, we’re around the high-value and

are update. So as you call, we give that more soon as on we’ll

Larry Solow

I enough. those guys. points. Thanks appreciate fair Yes,

Bernard Birkett

Larry. you, Thank

Operator

you. moment our for One Thank next question.

Our next Bank the DeBruin question America. Derik comes of in from line of

Derik DeBruin

good Hi, morning.

X%? color to grow think – the implies bit to big – excess should in sort have to that And get of the range of HVP of X% clarify I of just positive we like those talking positive range? to to little talking that about year. I mean, a your to mean, I – think sort provide how is overall mean, talking sort products are X% we Are that that you along sort more to lines, next terms year organic next you’re in revenue of to mean, are growth those about? I X% about. back proprietary well comment, X% can this of we Just seeing year range. next

Eric Green

you I’ll want if start add. and Bernard, to

portfolio to be we’re So the double But have in based you’re strength pharma. proprietary going it’s non-COVID seeing both biologics. digits, strong right, the related also Bernard biologics business more the be end led But and you higher that and generics and is portfolio and by FluroTec can very color? around HVP the drivers of mostly give and support the want particularly NovaPure plungers. our and to around is that’ll key

Bernard Birkett

Yes.

out that within to would business our As digit we double Eric we be construct base said to going that base growth, put that north there. our expect of that’s see on

So again, at potentially that able we C-XX could capacity, at we’re there And for could upside be be offset looking the then, decline see to some there timing base business to that here. looking also the of and us.

Derik DeBruin

of perspective. sort that around of annualize mean, of being I sort able EPS of sort the profile, sort look to you’re worst to margin you mean, of sort we I the of the about Got I scenario looking it’s ugly not an you I sort this the pretty you – it’s year, year? worst all can’t question the case what’s next help And a it. going online? terms us how understand back sort into for of going further where fear that like at back what guess guess of is to case through. capacity sort in at parameters Just margin scenario? are put I online the the quarter that next mean, And up, the question, thinking there out? goes number capacity to some push that you situation the a bring there’s if get fourth that of risk is of

Eric Green

early that On would as that comments online, mentioned Yes. to in getting that’s in progress. XXXX. the expect And we see start, we actually capacity the at

reasonably are confident that we having uplift. So, around

Derik DeBruin

involved indication obesity Got scaling online. coming coming but up and for not that it. like in rhetoric any are what seeing give can point, of the drugs you’re like any sort some of issues, you – are sort just of us to And reiterate on you you’re drugs inventory-related of

coming the sort from? of of to us of demand a sense give Just some where is

Eric Green

publicly. bit the We give Yes, specific areas. give tend on earlier, drug positive. were very But or success elastomers be we're customers quite you molecules, that – articulate particularly years, a unless last the and that our will to particularly little they that's we’ll all, in of don’t drug couple launches, is I indicated a seeing, over few customers first do biologics some as

We discussions that into being that key down West where large around drug are the or specific a that are in the part But conversations. be launches that path. go of at obviously is further specific – those obviously, we simply those are going drug volume molecule marketplaces, obesity areas customer in diabetes, would don't any looked the just

Derik DeBruin

you. Thank I Thanks. get queue. into will

Operator

Thank you. moment for One question. our next

from question Windley next of Jefferies. from line Dave Our comes the

Dave Windley

XQ good prepared missed supply for XXX Hi, basis but taking and I in Thanks that my I elaborate, could some there were you in that take-or-pay of notes to that us, carryover XQ. revenue the Was or thing? remarks, some we morning. quantify questions. had in Bernard, it, payment points And you that your reference in was it think for agreement expecting same you mentioned again in kind COVID our had related please? expected

Bernard Birkett

get to the was It over customer. two to Yes, same quarters. It had the it relating split was same.

to were relate were really then to we but customer. there smaller one primarily it what that related that's material, other So not bits and some was

Dave Windley

was And the the XXX a margin. that was benefit What missed gross points, the XXX? basis to detail I

Bernard Birkett

it Yes, to margin. gross was

Dave Windley

Yes.

Okay. proprietary in is dovetailing think Larry's I on guidance both In margin, fourth product maybe it kind like gross down looks probably quarter the of thinking margin your on Derik and lower. the and mid-XXs, quarter questions about fourth

how products, factors baseline the for it about plungers other should capacity underutilized Or for if is thinking help value and you're or XXXX? us really these that ramp to relative does And And thinking to other so high you able coming I we or be like because is much margin? sounds fourth much quarter to COVID about set unutilized so could before basically that not mostly? what out wondered understand, just does

Bernard Birkett

Yes.

So experienced in the having fourth equipment throughput impact that's issues getting quarter, in as with carryover and after that we and then place on from resolve the lot able and the the to capacity our a QX in layer through work that has XXXX a time. change When same the and this of early in at that then will problem. in also mix been shift the we delays

really down increased it's capacity to throughput. So and having that

reoccur. don't we will So believe it

Dave Windley

follow-up. the pardon So

you same margin want So how that levers like doesn't works? much the but want kind margin. more more help that cost. and I to That us capacity know too understand get how would capacity volume like you could on to so get flows adding adds to sounds like don't the backup maybe into minutia, that operational seems you It that something of something probably sound

Bernard Birkett

not So actually or distribute capacity will of through enable with help lines absorption. and – and sales the clear it's to it's fixed to going our improve help us HVP cost end our products more actually

in and it and we're to more that not sell more it's to gives going So detrimental. quicker. to actually cost us layer plants through going high products it's be ability the actually It our value get

we So realize those can revenues faster.

Dave Windley

COVID more those NovaPure a that product here to the ask It move SKUs customers the like the high general out popular of absorb out period if market, to and or market still into out we And your it's NovaPure But calling consistently are the sounds highlighted we question value, and mix if FluroTec NovaPure NovaPure mix, heavy should plungers, mix. I'd in much those zooming thinking should a that where purely you – are products think how of is, the slow it you're been described, that or value you'd this in be within as as plungers and COVID the you about period broader? little bit high but on I customers. think, were probably and is we NovaPure

Eric Green

Yes.

portfolio, you be at you going the when So are it's to mostly right. – look

that – is but It now, you it margin mostly to that that plungers is corridor. the we nice you NovaPure. look when that. when is right at and mix you So a the about but COVID-XX, think making associated demand mostly is stoppers it we're NovaPure and NovaPure FluroTec And think about investments currently was have. And high around

And NovaPure some laminates but laminated, platform a are working from it's so we're not that with.

Dave Windley

Okay. And me. then question a for final

there. strikes pretty mentioned really pretty I does to But of You Or that good sampling Valor Does or January, in mean? availability product wanted early-stage development Valor availability which the some news go-to-market available that is system mean? quick early, me what – I start kind ask, is testing? packaged the what does guess so and

Eric Green

think That's for the around of and that in in feet and market, to been support around looking particularly so accelerator about is a seed early pharma large the the benefits the has all is an it great are the smaller with the really be small stage. data able and smaller We we so Yes. to provide to early They of one our development customers known pipeline, phase. are drug we off-the-shelf ReadyPack biotechs. with have it, technical it’s solution and this portfolio

somewhat with ultimately differentiation is the both Corning NovaPure want teams market use that patient. was of very NovaPure frame, this market. lot and through XXXX as driving we [Technical time intent for the becoming the today, this of we And about time example you seed technical us customers collaboration on call, as really and from same Just same of pleased what ReadyPack, the our continuously sense the standard the to biologics. can the Difficulty] approach, in channel, avenue talking spent I’m are when an means launched That's now new in our between West and a in

excited about it's we I'm will of stages, but updated, the you launch in early part the So keep but year. first the

Dave Windley

Got it, you. thank

Operator

moment next our Thank for question. you. One

of Jacob Stephens. next Johnson comes question from from Our the line

Jacob Johnson

you revenue XXXX you dollar a of question morning revenue kind little of Hi, where couple an on the bit kind thanks. issues. a one-off this but will XXXX decline kind to kind given any seems follow-up growth, of around today because of due were to that in your XXXX, kind think expectations were obviously, morning. a XQ. XXXX little about a to obviously of where Is bit of you we a in as have change Maybe expectations ago, there three versus months versus the some Good months of comp ago be easier change Derik's of your revenue

know much is curious asking. kind easy of how strong that's strong kind I that's answer, just year don't try I'm of So versus next but something I'll that demand comp if possible to of growth

Eric Green

Jacob. No, thanks,

we look around now, in One saying I to puts XX% at. there's it's the Right last is, we're reduction talked think about think reduction. COVID that a over this about a the XXXX call, saying I levers So to of in what XX% side couple roughly XXXX. after

to So million $XXX discussed. we that equates that

growth business, same the looking what a we're at stronger mid-last maybe anticipated. year, about than growth, On the underlying were the but than the we biologics relatively bit we the of as little

so the say. our sites that so this now on sooner, would we're I you If able just assure we're validated same, can product. get two with about to get laser-focused I really right But customers online net-net, at to we looking equipment we of do customers produce are can those we conservatively we're capacity benefit to in So will we have on asking us a But now, as in do right much several weeks, produce can we saying get because as early XXXX. demand the the we next if can and you have short-term.

growth. but if We them think see but to thing about a that next in corridor, about that mid-single-digit return last small talk type say, the little much to piece, to not back as one come better bit I we're didn't a that starting for seeing quarter, really year. change, last would last is the I

we changes So where the three from stand ago. months that's with

Jacob Johnson

I then kind And of the next just be know vials Eric. to year, COVID that dose but helpful, single a Super syringes. is piece or prefilled smaller revenue of going on Okay. transition

some Pfizer announcement highlighted in last think an week. this I of

that terms Just mix dose contemplated maybe doses in guidance? towards single shift into the curious of what's thoughts or COVID as year vials could your on next look timing latest your we single and of kind the dose be in of

Eric Green

comment. a just but and months. I there the COVID of in is six mean, lot of area that’s talk one lot you last variability about variability a if Yes, quick

there about it’s a as That yes, obviously, – So think if a vial shift single a as fast prefilled and get still use syringe. to occurring not you doses there's anticipated. is transition, is dose trying per we but lower

Jacob Johnson

Okay, got taking it. for Thanks questions.

Eric Green

Thank you.

Operator

for Lai like the turn to Quintin Thank you. remarks. back closing I would to conference over now

Quintin Lai

Thank for joining online will Thank today’s the you, us [Technical XX you call. broadcast for Difficulty] be in section. today's Gigi. Have a nice conference archive call. Investors available That of day. on days the concludes An

Operator

conference Thank participating. today's This for concludes call. you

disconnect. may now You

West Pharmaceutical Services (WST) 27 Oct 222022 Q3 Earnings call transcript