West Pharmaceutical Services, Inc. Wells Fargo 21st Annual Healthcare Conference

Yeah. First of all, Evan, thanks for having us. It is great to be here. One year ago, this was the first conference that I had I remember.

coming to West, and it has been a great year, but I will tell you there is still a lot more opportunities going forward. I feel really good about the business. I would say Michel is joining the company at a really great time. As you guys know, we are the market leader and really serving a critical role within the pharmaceutical supply chain. We have had some very nice momentum this year, and I am sure we will talk about that. I think there are opportunities even to continue to expand that. Speaking with Michel, it is his week 2, and I think what is really great about him is he knows our markets extremely well. He knows our customers, and in fact, he has already spent time with our customers. He is on a site visit and going around looking at our sites, talking to our employees.

I think he will continue to accelerate the work that is already being done. Actually, I think elevate our conversations with customers, which I think will be good not only in terms of our current opportunities, but future opportunities. I expect not only a seamless transition, but an acceleration of the opportunities that we have in front of us.

Yeah, we were really pleased with Q2. The momentum of the business continues to be strong. The market is constructive demand continues to be there. It is very good. I am very pleased with Q2. As you have mentioned, we beat by over $35 million, and really the area that beat was our HVP components business, which is really over 50% of our business and the business that we expect to continue to have the strongest legs going forward. Really both HVP, non-GLP-1, as well as GLP-1s performed very well. This was on the back of recovering out of a cyberattack as well. We are very pleased with the team. The biggest contributor actually was non-GLP-1 HVP.

When you think about the growth drivers going forward, the continued rise of biologics where we have greater than 90% participation rate, the regulatory requirements around Annex 1, and just the overall kind of mix shift there, feel very good about the continued momentum in that side of the business. As a result of Q2, we actually took our guidance up by 250 basis points at the midpoint. That is now 10%-11% growth for the full year, and very good.

Yeah. We started the year. The strong growth is really driven by our HVP business, as I was mentioning before. Of that 10%-11%, that's over 8 points of growth is HVP components growth. So very strong performance there, really driven by the underlying factors that I just kind of mentioned, and we expect that to continue as we move forward. The rest of the performance was actually in our drug delivery device business, particularly in the first half of the year. But what's really nice is the HVP business also drives very nice margin expansion. So with the addition of that, going from 7%-9% to 10%-11% for the full year, we are now forecasting greater than 200 basis points, almost 250 basis points of margin expansion growth for the year.

That's 50 basis points higher than what we had seen in our previous guide. So very good start to the year. Not done yet, but feel good about the momentum in the business.