West Pharmaceutical Services, Inc. Morgan Stanley 24th Annual Global Healthcare Conference

Thank you for having me. It's a pleasure, and looking forward to the conversation.

Yeah, we were really pleased with how Q2 shaped up. Despite the fact of the cyber incident, we were able to overcome that and actually beat expectations, as you mentioned. Overall, we grew 13% on the top line, beating our expectations. What was really exciting to see is all business segments grew. That 13% was really led by our HVP business, which is almost 50% of our total revenues now. That grew 18%, with both GLP-1s and non-GLP-1s contributing. Our drug delivery device business actually and HVP drove the majority of the beats. We were actually able to overcome the cyber incident. We continue to see very solid and robust demand throughout the quarter.

Actually, obviously, May was a bit of a softer month, but we really came back in June as we ramped up the facilities. All the work that we have been putting in to drive additional capacity and utilization in our HVP plants really came to bear in second quarter. Drug delivery device also grew very nicely. Some of that was actually our stocking associated with the SmartDose in advance of the transaction. But if you even take that out, we still grew double digits in the rest of the business, and standard core business was up one. I would say our West Vantage business was up 1%. That was the one area that we still had some lingering effects of the cyber incident. Just based on the way that business is geared, you can't catch up as fast.

We do expect that about $7 million of revenues to catch up in Q3 and Q4. Overall, a very solid quarter. As a result of that strong Q2, we actually raised our full-year guidance to 10%-11% organic for the full year. That's up 250 basis points at the midpoint. So continued solid demand, and a good start to the year. Got a second half here and we're optimistic about continuing to execute.

Our GLP-1 business continues to perform very well for us. If you look at it for the first half of the year, it led to growth across our business, high teens in Q2, as you mentioned. We have just rounded up to 10% of revenues in the quarter. As you mentioned, we did have a small classification from non-GLP-1 to GLP-1. HVP was clean, $34 million in Q2 of last year. I would also say, as we did have the cyber incident, we had to change and adjust our production plan that we had at the beginning of the year to ensure that customers did not have any stock-outs. I think if you take these things into account, we are not concerned about the performance of our GLP-1 business. We expect it to continue to drive very strong growth.

When you think about, and I am sure we will talk about this, the overall market for GLP-1s, we are still very early innings in our view, not only here in the U.S., but around the globe, particularly when we think about the next generation, the biosimilars that are coming along, as well as the continued penetration of the existing products that are on market.

Yeah. As we've done all year, we've got an upside bias to our forecast for GLP-1. I would say, there's nothing fundamentally that we see in the market that has changed, and feel good about the rest of the year for GLP-1s.