West Pharmaceutical Services Q1 2025 Earnings Report

West Pharmaceutical Services EPS Results

• Actual EPS: $1.45
• Consensus EPS: $1.22
• Beat/Miss: Beat by +$0.23
• One Year Ago EPS: $1.56

West Pharmaceutical Services Revenue Results

• Actual Revenue: $698.00 million
• Expected Revenue: $685.24 million
• Beat/Miss: Beat by +$12.76 million
• YoY Revenue Growth: +0.40%

West Pharmaceutical Services Announcement Details

• Quarter: Q1 2025
• Date: 4/24/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, April 24, 2025
• Conference Call Time: 9:00AM ET

West Pharmaceutical Services (NYSE:WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

West Pharmaceutical Services Q1 2025 Earnings Call Transcript

Presentation

[Operator]

Good day,

[Operator]

and thank you for standing by. Welcome to the West Pharmaceutical Services First Quarter twenty twenty five 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. To ask a question during the session, you will need to press 11 on your telephone.

[Operator]

You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Sweeney, Vice President of Investor Relations. Please go ahead.

[John Sweeney, Vice President of Investor Relations at West Pharmaceutical Services]

Good morning, and welcome to WES' first quarter twenty twenty five earnings conference call. We issued our financial results early this morning and the release has been posted in the Investors section of the company's website located at westpharma.com. On the call today, we will review our financial results, provide an update for our business, and present our financial outlook for FY 2025. There's a slide presentation that accompanies today's call and a copy of the presentation is available on the investor page of West's website. On slide four, there's a safe harbor statement and statements made by management on the call and in the accompanying presentation contain forward looking statements within the meaning of The US Federal Securities Law.

[John Sweeney, Vice President of Investor Relations at West Pharmaceutical Services]

These statements are based on our beliefs and assumptions, current expectations, estimates, forecasts. The company's future results are influenced by many factors beyond the control of the company. Actual results could differ materially from past results as well as those expressed or implied in any forward looking statements made here. Please refer to today's press release as well as any other disclosures made by the company regarding the risks to which it is subject including our 10 ks, 10 Q and eight ks reports. During today's call, management will make reference to non GAAP financial measures including organic sales growth, adjusted operating profit, adjusted operating profit margin and adjusted diluted EPS.

[John Sweeney, Vice President of Investor Relations at West Pharmaceutical Services]

Limitations and reconciliations of the non GAAP financial measures to the most comparable financial results prepared in conformity to GAAP are provided in this morning's earnings release. I'll now turn the call over to our CEO, Eric Green. Eric?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Thank you, John, and good morning, everyone. Thanks for joining us today. I'll begin today's remarks with our performance in the first quarter. Then I'll provide some context on the trends we are seeing and share how the company is positioned for long term growth, followed by Bernard's detailed financial review. I will then wrap up with some closing thoughts.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Starting on slide five, I'm pleased to report that we delivered a solid start to the year as both revenues and adjusted EPS exceeded our expectations. This was largely driven by solid contributions from GLP ones and a reduced impact from industry wide destocking. Our results reflect the West team's operating execution in the areas where we maintain competitive advantages and strong customer relationships. Moving to slide six. Our proprietary products business, which includes HVP components, standard products, and HVP delivery devices, was up 0.6% or up 2.4% on an organic basis.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

In the past five years, HVP components have grown at a CAGR of 13%. And overall, we expect HVP components revenues to grow mid single digits in 2025, down from our previous expectations of mid to high single digits, a change driven by mix and timing. A key driver of HVP components growth is our ability to capitalize on the significant opportunities in the GLP-one market. Our HVP GLP-one elastomer business is performing well, growing to about 7% of total revenues in the first quarter. Furthermore, we continue to make progress with our biologics customers, solidifying our position as the global leader in this space.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

There are two parts to our Biologics business that I would like to address individually. First, delivery devices is a small portion of the portfolio within Biologics and is the current source of growth as we installed a new production line in Q3 of twenty twenty four. However, the growth will reverse the second half of twenty twenty five when we comp against the significant incentive payments we received in q three and q four of last year. The largest portion of the portfolio within Biologics is HBP components, and this has a positive trend. These are pacing negative in the first and second quarters of twenty twenty five, a function of tail end destocking.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

We anticipate that this trend will reverse and expect a high single digit growth rate in the second half of twenty twenty five for Biologics HVP components. On an aggregate basis, we expect Biologics growth of low single digits in 2025. We are encouraged with the progress we're making with Annex One. In q one, Annex '1 revenues were about 200 basis points of total revenues. This was stronger than our expectation of a 100 to 150 basis points for the full year, driven by favorable q one timing.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

To date, we have approximately 340 Annex One projects in various stages with our customers, up from the 280 we mentioned in the last earnings call. Importantly, AnnexOne increases the value proposition of our HVP portfolio with a positive mix shift. Moving on to a discussion of our HVP delivery devices business on slide seven. The growth in this area was driven by a continued volume ramp in SmartDose in the first quarter of twenty twenty five. We have a twofold strategy for this area of our business.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

First, we're working hard to drive significant margin improvement as we move forward. This incorporates driving scale for the business, introducing an automated line later in 2025 to early twenty twenty six, and we're working to improve the economics around this business in the near term. Second, we continue to evaluate the best path forward for this business and all options remain on the table. Finally, standard products were relatively flat year over year. Overall, we are seeing improvements in the Proprietary Products business driven by strength in GLP-1s in line with our expectations in 2025.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

In our contract manufacturing segments on Slide eight, revenue growth in our GLP-one auto injector business is offsetting the CGM contract exits. We continue to work towards filling the space and onboarding new contracts as we continue to execute on this business. We believe that for the full year, our investments in GLP-one facilities will continue to deliver low single digit growth for this segment. Our goal is to continue growing our contract manufacturing business and move it into drug handling, which we believe will be higher margin and comes with lower capital intensity. In the near term, we are executing on our capital allocation strategy, which involves investing in the overall business to drive future performance, returning capital to shareholders through our stock repurchase program and dividend.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Before I turn the call over to Bernard, I'm sure you have seen the press release this morning regarding the executive leadership changes. I know that Bernard's decision was not made lightly, and we appreciate the notes he has given the company in order for us to seek a successor and ensure a smooth transition of his role. Bernard has been an invaluable partner and advisor to me in the entire organization. His contributions and leadership over the past seven years have been instrumental to our success. He will be missed.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

We have initiated a search process to identify Bernard's successor, and he has committed to be part of the selection process where his insights will be beneficial. Additionally, I am pleased to highlight an outstanding new addition to our executive leadership team. Shane Campbell is joining us as the Senior Vice President of Chief Proprietary Segment Officer. He comes to us from Carlisle Company, where he served as a chief commercial officer of the construction materials business. As an accomplished leader, including a twenty year career at DuPont, Shane brings extensive global management experience in areas of elastomers, polymers, building materials, chemicals, and packaging.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

We look forward to working with him in the vast experience he'll bring to West. I'll now hand the call over

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

to Bernard. Bernard?

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Thank you, Eric, and good morning. I appreciate your kind words. As you know, I really enjoyed our partnership working with the West team, and I am proud of what we have been able to achieve.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Now let's review the numbers in more detail. We'll first look at Q1 twenty twenty five revenues and profits, where we saw a low single digit increase in organic sales, an increase in adjusted operating profits and a reduction in diluted EPS compared to the first quarter of twenty twenty four. I will take you through the drivers impacting sales and margin in the quarter as well as some balance sheet takeaways. And finally, we will provide an update to our guidance. First up, Q1.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Our financial results are summarized on Slide nine, and the reconciliation of non U. S. GAAP measures are described on Slide 17 to 19. We recorded net sales of six ninety eight million dollars representing an organic sales increase of 2.1%. Looking at slide 10, Proprietary Products organic net sales increased 2.4% in the quarter, primarily driven by positive sales price slightly offset by mix.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

High value products, which made up 73% of proprietary product sales in the quarter, increased by low single digits, led by customer demand for self injection device platforms. The Biologics market unit delivered mid single digits organic net sales growth, driven by an increase in sales of self injection device platforms, partially offset by lower sales of FluroTech products. The pharma market unit saw mid single digit growth primarily due to an increase in sales of standard products and Westar products, while the generics market unit declined mid single digits, driven by a decline in sales of standard and FluroTech products. Our Contract Manufacturing segment experienced low single digit net sales growth in the first quarter, primarily driven by an increase in sales in self injection devices for obesity and diabetes. We recorded $231,900,000 in gross profit, which was 1,700,000.0 or 0.7% higher than Q1 of last year.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

And our gross profit margin of 33.2% was a 10 basis point year over year increase. Our adjusted operating profit margin of 17.9% was an increase of 20 basis points from the same period last year. Finally, adjusted diluted EPS declined 7.1% for Q1. Excluding stock based compensation tax benefit, EPS improved by 1.4% compared to the same period last year. Now let's review the drivers in both our revenue and profit performance.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

On Slide 11, we show the contributions to organic sales increase in the quarter. Sales price increases contributed $23,300,000 or 3.4 percentage points of growth in the quarter. Offsetting price was a negative volume and mix impact of $9,000,000 as we saw higher sales of self injection offset by a decline in FluroTech and a foreign currency headwind of approximately 11,700,000.0 Looking at margin performance, slide 12 shows our consolidated gross profit margin of 33.2% for Q1 twenty twenty five, up from 33.1% in Q1 twenty twenty four. Proprietary Products first quarter gross profit margin of 37.3% was 30 basis points higher than the margin achieved in the first quarter of twenty twenty four. The key drivers for the increase in Proprietary Products gross profit margin, in addition to sales price, were production efficiencies, partially offset by a negative shift in sales mix from HVP components to HVP devices.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Contract Manufacturing first quarter gross profit margin of 16.1% was 90 basis points below the margin achieved in the first quarter of twenty twenty four, primarily due to increased spend and production inefficiencies. Now let's look at our balance sheet and review how we've done in terms of generating cash for the business. On Slide 13, we have listed some key cash flow metrics. Operating cash flow was $129,400,000 for the three months ended March 2025, growth of $11,200,000 compared to the same period last year, a 9.5% increase primarily due to favorable working capital management. Our first quarter twenty twenty five year to date capital spending was $71300000.0.19300000.0 dollars lower than the same period last year.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Working capital of approximately $931,000,000 at 03/31/2025, decreased by $56,900,000 from 12/31/2024, primarily due to a reduction in our cash balance. Our cash balance at 03/31/2025, of $404,200,000 was $80,400,000 lower than our December 2024 balance. The decrease in cash is primarily due to $134,000,000 of share repurchases and our capital expenditures offset by cash from operations. Turning to guidance, Slide 14 provides a high level summary. We are increasing our full year 2025 revenue guidance for the impact of foreign currency exchange.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

We expect net sales in a range of 2,945,000,000 to $2,975,000,000 compared to prior guidance of 2,875,000,000.000 to $2,905,000,000 There is an estimated full year 2025 headwind of approximately $5,000,000 based on current foreign exchange rates. We continue to expect organic sales growth to be approximately 2% to 3%, unchanged from prior guidance. We are increasing our full year 2025 adjusted diluted EPS guidance to a range of $6.15 to $6.35 up from the previous range of $6 to 6.2 Full year twenty twenty five adjusted diluted EPS guidance assumes no impact based on current foreign exchange rates compared to an FX headwind of $0.23 from prior guidance. The updated guidance also includes EPS of $02 associated with first quarter twenty twenty five tax benefits from stock based compensation. Our guidance excludes future tax benefits from stock based compensation.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Here is our assumption about tariffs and our EPS guidance. Based on the tariffs that have been set, we believe the net impact to our business will be 20,000,000 to $25,000,000 for the remaining three quarters of twenty twenty five. However, there is a lot of uncertainty here, and we appreciate that this number could be more or less depending on retaliatory tariffs and other factors. We continue to monitor the situation, and we are utilizing every available mitigation lever to offset this impact. The tariff headwind is more than offset by the strength we saw in the first quarter, foreign currency improvement and the first quarter stock comp benefit.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

We are not currently incorporating any estimate for tariff related pass through revenues in our guidance at this point. Moving on to our second quarter guidance, we anticipate revenue to be in the range of $720,000,000 to $730,000,000 which translates to approximately 3% to 4% of second quarter organic sales growth. And second quarter adjusted diluted EPS is expected to be in the range of $1.5 to $1.55 Lastly, our 2025 CapEx guidance is $275,000,000 for

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

the

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

year, unchanged from prior guidance. I would now like to turn the call back over to Eric.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Thanks, Bernard. As you have heard today, 2025 is off to a solid start. We look forward to building on this momentum as we move throughout the year. Our team is steadfast in meeting the expectations to drive our growth. To that end, today we have increased our adjusted diluted EPS guidance for 2025.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

You can expect us to continue to capitalize on our competitive strengths and make decisions that improve our overall margin. We're laser focused on returns on invested capital and we'll have more to share in the coming quarters. Over the past few months, we were fortunate to have the opportunity to speak with many shareholders and our analysts. There seems to be a general consensus among those who we spoke with on those challenges and opportunities here at West, and we're committed to delivering on those goals and objectives. Lastly, I would like to thank all the team members at West who contributed to our successful first quarter.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Operator, we're ready to take questions. Thank you.

[Operator]

And And our first question comes from Paul Knight with KeyBanc. Your line is open.

[Paul Knight, Managing Director at KeyBanc Capital Markets]

Thank you. Great quarter, Bernard. Thanks for everything. We'll miss you a lot. The two questions are, what percent utilization are you assuming in the new site in Dublin, Eric, in your guidance?

[Paul Knight, Managing Director at KeyBanc Capital Markets]

And then the follow-up is for Bernard, and that is your margin seems to have been a little bit better on the adjusted op margin in 1Q. Are things is it business mix or are things getting a little improved at delivery devices? Thanks.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yes. Thank you, Paul for the question and good morning. Yes, specifically in our Dublin site, which is for contract manufacturing, we are initiated ramping up earlier this year and that will continue throughout the year. So the utilization percentage is quite low as we speak. And that's incorporated into our guidance.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

As we mentioned before on that site, it will handle do drug handling and that will be available towards the end of the year, early next year to launch and for commercialization. So low percentage at this point in time, Paul. Bernard?

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yes, Paul. On the operating margin, we actually saw better efficiencies within our E and PC business compared to what we had originally forecast. So that was a positive. We also saw an improvement in the margin within contract manufacturing versus the forecast that we had for Q1. So again, very positive there.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

And then on our SG and A and R and D, the spend was a little bit lighter in Q1, again, versus what was forecast. And we have made some adjustments in those areas to control costs. And then again, some of that was related to timing. And again, that's updated in the guidance that we've given. So a lot of positives for us around the cost base, and we just need to maintain that as we go through the year.

[Operator]

Thank you. Our next question comes from Larry Solow with CJS Securities. Your line is open.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

Great. Thank you. I echo Paul's comments. Bernard, wish you best of luck as well. I guess first question just on the guidance and the Hausaio product mid single digit growth.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

Is that purely a function of just the inventory you mentioned timing, is that and you discussed inventory destocking. Is that primarily a function of that? It does feel like as you run through the year, sounds like you continue to expect that to track upwards. So is there really any other change outside of the timing? I know you mentioned Annex one was a little bit better in Q1 or contributions from that, but that sounds like that might tail off.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

So I'm just trying to get a little more color just around the high value product outlook.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yes. Larry, there's a couple of factors impacting that. One is on pricing. We're seeing pricing come in a little bit lower than we originally anticipated. Not overly material, but we just want to make sure people understand that.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

So when we report in the next couple of quarters, you'll see it a little bit lower. And we also have a constraint situation in one of our facilities where a customer has switched the product that they want to take from us. So it's put a lot of demand into one facility where originally we had that demand spread out across a number of sites. So we do see a constraint here in the short term. So it's more of a short term supply issue rather than a demand issue.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

So what we are actually seeing is increasing demand, but we have to be able to deliver on that. So when Eric called out timing, that's what that relates to. So we do expect in the second half of the year to see a step up in HVP components across all our sites. And again, that's embedded in the guidance.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

Okay. And then just a second question. You mentioned sort of the impacts of or the unknown impacts obviously of tariffs and geopolitical. What about just any thoughts on, obviously, with the reduction in government spending going on and lots of headlines on the impact of health care? And you mentioned some also on the macroeconomic stuff there in your prepared remarks.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

Eric, do you see any real significant impact outside of some of the direct tariff impacts, but just on demand or concerns on demand in your business because of some of the sort of government headwinds going on?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yeah, Larry, it's a very good question. As we talked about tariffs, we feel we have a good view of where we are today based on the current factors. And as you know, that landscape could change. And we do have several programs that we are implementing and have implemented to mitigate those expenses such as passing on some of the costs to our customers. And also a fortunate part of our business that we created this network of operations across the globe to build support more in the region.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Regional support, therefore, there's a lot of less cross border movement of our goods for our customers. While it's not a % pure, I think this global network that we created, HPP as an example, a couple of sites in The US, a couple of sites in Europe, 1 in Singapore, is great leverage to build support our customers. The other factors macroeconomics, there are other levers that we'll keep an eye on. But right now we don't see that impacting our volume and demand commitments that we are gonna fulfill for our customers throughout the year. We're not seeing patterns change.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

In fact, as Bernard talked about a little bit earlier, the one change we're seeing is a increase. We're seeing a visible increase in demand as we go through this year, which is a positive sign, which is consistent what we talked about in the last quarter.

[Operator]

Thank you. Our next question comes from Justin Bowers with Deutsche Bank. Your line is open.

[Justin Bowers, Analyst at Deutsche Bank]

Hi, good morning, everyone. I just wanted to follow-up on the last question related to timing and sourcing. So it sounds like that's related to HVP. Just want to confirm that. And then part two of that would be, it's with the increase in demand and the timing shift is should we infer that some of that demand spills over into twenty twenty six?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yes, so you're correct, Justin, very good question. The demand that we're talking about right now, the constraint is in one of our HPP plants that we're working through those constraints as we speak to build to support our customers. But with the lens that we have today, we would just wanna make sure we call that out. There are a number of initiatives to address that. If and as the demand continues to climb, there might be some that goes into 2026, but we'll keep you updated as we go throughout the year.

[Justin Bowers, Analyst at Deutsche Bank]

Okay. And then just a quick follow-up on the tariffs. Is that mostly how much of that is impact is from component sourcing versus maybe something that's going cross border in terms of like a finished good? And then the follow-up to that is, does that all drop through or is there any, you know, should we just assume like, kind of like the overall tax like the effective tax rate or is there any, you know, tax offset there?

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Sorry, I couldn't actually hear the questions very much.

[Executive]

Justin, think I have it. You're asking about tariffs and you're saying, is it in finished goods or is it in the sourcing? And it's actually in a little bit of both. And then you're also, I think asking about the proposed US manufacturing tax rate of 15%. And if that's something that could potentially be an offset.

[Executive]

Is that correct?

[Justin Bowers, Analyst at Deutsche Bank]

That's right.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yes. As we've looked at the tariffs, we've looked at it from multiple different perspectives. One is on components, as John said. The second is on other sourcing where our suppliers would pick up the tariff but then potentially pass it on to us. So we've embedded estimates of that into our guidance.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

We're also looking at where we, on the Incoterms, where we ship product to and where the importer, do we pick up the tariff costs at that point? Again, all of those elements are built into our guide. But based on what we know today, again, it's a very fluid situation. There are various mitigations that we're actually working on at this point to reduce that number over time. But again, we want to see those materialize before we call those out

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

So we're giving you the clearest picture that we have today. And then when we look at any future tax benefits that could come in The US, yeah, if the tax rate lowers, it is a benefit. But again, we have to wait and see when and how that materializes.

[Operator]

Thank you. Our next question comes from Michael Ryskin with Bank of America. Your line is open.

[Michael Ryskin, Managing Director at Bank of America Merrill Lynch]

Great. Thanks. Quick follow-up question. I thought you to an earlier question, I think you said that one of the factors was that price came in a little bit lower than expected. I want to make sure I heard that correctly because I think you did 3.4% price contribution in the quarter for the business overall, and that was a little bit more than we thought it would be.

[Michael Ryskin, Managing Director at Bank of America Merrill Lynch]

So just if you could clarify your comments on price and sort of where it was a little bit better?

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yes. Michael, when we look at it for the year, we expect it to be a little bit lighter than originally estimated.

[Michael Ryskin, Managing Director at Bank of America Merrill Lynch]

Okay. Okay. But in the quarter, did it come in also lighter?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

The quarter, we were happy about it. It's more of a forward looking.

[Michael Ryskin, Managing Director at Bank of America Merrill Lynch]

Okay. Okay. Alright. And then just the other questions that are related to tariffs and your customer behavior. One of the things we're we're thinking about is that some of your customers may be looking to speed up some manufacturing or maybe accelerate some plans to try to get ahead of tariffs on their products, on pharmaceutical products.

[Michael Ryskin, Managing Director at Bank of America Merrill Lynch]

If that comes in during the year, there's some reports of elevated levels of manufacturing or product shipments in the first quarter. Did you see any of that? Did you see any weird timing of maybe things pulling forward a little bit or customers moving around timing plans for the year from their perspective?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

No, Mike, that's a very good question. For us, since most of our transactions or our manufacturing process are made to order, the answer is no. We didn't see any changes to the demand profile and the order cadence that we're seeing throughout the balance of the year. So we're seeing at this point in time, we're not seeing any adjustments or any change of behaviors due to these tariffs. And then again, just to reiterate, lot of our manufacturing sites are not a 100%, but this majority of it is co located in the geographies where our customers reside or where they want to take shipments.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

So therefore that's a net benefits. We're not seeing a change of behaviors at this point of time or their demand profiles of their own products.

[Operator]

Thank you. Our next question comes from David Windley with Jefferies. Your line is open.

[Dave Windley, Managing Director at Jefferies LLC]

Hi, good morning. Thanks for taking my questions, and congrats to to both Bernard and mister Campbell, going out and coming in. The first question I have is around utilization, I guess, or or margin trade off, so to speak. When I look at your year over year comparisons, p and l comparisons, they are surprisingly similar. Revenue, gross margin, operating margin, basically the EPS difference comes down to SBC tax benefit differences.

[Dave Windley, Managing Director at Jefferies LLC]

And yet, within the P and L, I think we know that, as you're calling out, very, very high margin FluroTech is down and low margin self injection devices is driving the growth. So you have some offsets in there otherwise that are helping to mitigate that mixed trade off. And I wondered if you could explore or better elucidate what some of those things are. And in that, maybe Annex One is potentially one of them. And I wondered on that if you could comment what the typical upgrade or step up in economics is that we should think about when a client goes through one of these Annex One projects and moves forward to a change in their component sourcing?

[Dave Windley, Managing Director at Jefferies LLC]

Thank you.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yeah, David, I'll take that to start with. On Annex One, it's not having an overly material impact at the moment. It is growing. As Eric said, the level of interest is increasing. What we would typically see if we're moving to Annex One, you're moving from standard type product margin to a HVP margin, probably a little bit north of our corporate average.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

So it is a pretty significant step up. And then that can vary depending on how far customers want to move up that HVP curve. But really, when we've been looking at our business and managing the P and L, as we've been moving into 2025 and looking at the growth challenges that we have been facing and trying to get back to that LRP, there's been a lot of focus on utilization and efficiencies within our manufacturing operations. We're starting to see positivity there. I called it out earlier, I think when the question was asked about operating margin improvement, that is one of the key drivers.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

We're also seeing it across our contract manufacturing business. And also looking at our spends within OpEx. We're seeing really a lot of control around research and development and SG and A. So it's really managing our P and L on an active basis to make sure that we're at least maintaining the margin in this period as we transition back to the LRP.

[Dave Windley, Managing Director at Jefferies LLC]

Got it. My follow-up, Eric, is for you. The couple of announcements today from a management standpoint, seems like you're in the process of perhaps rebuilding your management team on a broader basis. There was a eight ks about a Chief Commercial Officer departure, and I think some others. So I wondered if you could comment on where that stands and how you're thinking about the leadership team that you need to build for the next, say, five years of your company's growth?

[Dave Windley, Managing Director at Jefferies LLC]

Thanks.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yeah, David, thanks for the question. I've been fortunate to have a ten year career here at West. I've been at work with some phenomenal people. And there's been a lot of tenure with the leadership team. And there does come times where individuals have made decisions to do other next steps of their careers.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And for example, Bernard has been a phenomenal partner. And I've said that many of times, but this is an opportunity at this point to continue to as opportunities present themselves as bringing new leaders into the organization. So I wouldn't characterize it as a change. I would just say there is a natural evolution of leadership over long periods of time. And that's what I think that's what you're seeing.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

But again, very, very appreciative of the partnerships I've had over the years. And as we move forward, we'll continue to bring leaders in that have seen where we wanna go and be part of that journey.

[Operator]

Thank you. Our next question comes from Daniel Markowitz with Evercore ISI. Your line is open.

[Daniel Markowitz, Vice President at Evercore ISI]

Hey, thank you for taking my questions and congrats on the quarter. So the first one is on Annex One. I think that's a really exciting part of the bull case for investors and I appreciate all the disclosures there. They're very helpful. There was better performance in 1Q and this is now the second quarter in a row with double digit percent sequential project growth.

[Daniel Markowitz, Vice President at Evercore ISI]

Can you discuss the potential upside you could continue to see from AnnexOne over the coming quarters and years? And if there are any customer anecdotes that would suggest we could see more upside? Thank you.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Thank you for the questions. Very good question. I mean, we're obviously excited about the prospects of Annex One. As you know, it's an element of a regulatory change that fits well with the thesis of West, particularly on the HVP portfolio. This is what we've been driving for a number of years and that's been giving us great confidence of future growth and margin expansion that gives us mix shift effect that we're looking for.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

You're right, there has been an increase of number of projects that we have taken on since the last call. We anticipate that to continue to grow. I won't articulate the numbers we're targeting. And Bernard was right to call out earlier. It's not a significant number now.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

So the way I would characterize this is in twofold. One is, it is one project isn't always one customer is not just one project. It could be multiple projects. And it also means that could be large and small. But the general thesis of moving from a lower margin, lower ASP to a higher ASP, higher margin because these services and capabilities we're providing and leveraging the existing assets we have in place for HVP processing is a perfect fit of the growth algorithm more long term.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And it's not just a one or two year event, but more long term. And second area I'll just comment on is there are tends to be more around the pharma and the generic space than biologics as biologics when they enter into the market, the new molecule we tend to be already in the mid to high end of our HBP spectrum. So that's how I would kind of characterize it. But it is long term initial traction looks looks strong in line with our expectations and the team's very very much focused on executing this initiative for a number of years ahead.

[Operator]

Our next question comes from Thomas DeBorsi with Nephron Research. Your line is open.

[Thomas DeBourcy, Principal at Nephron Research LLC]

Hi, guys. Thanks for taking the time. So I just had a question first on your transition in contract manufacturing as CGM revenue rolls off and GLP-one contracts, you build that pipeline. And so I was curious just in terms of the level of demand and your ability to capitalize on that opportunity and actually fill that supply that guess that left open by the previous CGM manufacturing?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yeah, no, thank you for the question. And I will say that since we've had some discussions the last couple months, we continue to see interest with a number of customers to identify new projects, long term projects. Remember the agreements we tend to sign within contract manufacturing are seven plus type years. These are very long contracts with clear as sharing of capital deployment between our customers and ourselves as we move forward with these business arrangements. We have transitioned more of our focus towards more of the delivery devices like auto injectors and pens, and also moving downstream with drug handling, which will take time, but it has higher margins and lower capital investments.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

We have engaged with a number of customers and we're excited about the prospects we have in hand. To not just leverage the space that's gonna be vacant when CGM is moved out, but also even future growth. So I think we're positioned well right now. The 2025, we still have ramp up of NGLP ones and some more ramp up in Grand Rapids from a utilization perspective. As I mentioned to Paul's question earlier in Dublin, we're basically starting early this year of manufacturing commercial product, which will take us throughout the year and then moving into drug handling.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And that's pretty typical twelve to eighteen months to get to utilization levels that we're very comfortable with that is the intended installed capacity. So that gives you kind of a framework where we are with Centimeters, but yes, a lot of interest with our customers and we will continue to report out as we get more clarity and signed agreements over the next couple of quarters.

[Thomas DeBourcy, Principal at Nephron Research LLC]

And just as a follow-up question on SmartDose. I know this is the second quarter you mentioned all options on the table. I know SmartDose margins currently are below typical HVP margins. And so in terms of, I guess, your evaluation of options, do you see a pathway for SmartDose to become close to HVP component margins, or do you just view that maybe as a separate business or you would need a significant increase in the volume in order to have similar margins? That does it for me.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yeah, no, thanks for the question. Our view hasn't changed on SmartVille. We will. There's a two pronged approach that we have. Our team that's running that business is focused on driving cost out of that production process and they're making good strides.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

However, it really does require going from a manual two line process to fully automated. As you can imagine, the the yield, the output, productivity, and just the cost structure does change. That will not be validated and commercialized until the end of this year. Going into early next year, it'll take time to ramp. So that's the first lever and focus that we have for the team and the organization.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

While the demand continues to increase, we'll be able to support our customer. And secondly, as discussed last call, we have been reviewing options on what's the best path forward with this product within our portfolio. We do have belief where we should be going. And but at this time, I'm just gonna leave it as that. We'll just say that all options on the table to make sure that the best path forward is the best result for our customers, but also for our shareholders and for our team.

[Operator]

Thank you. Our next question comes from Doug Schenkel with Wolfe Research. Your line is open.

[Doug Schenkel, Managing Director at Wolfe Research LLC]

Good morning. You for taking my questions. I just want to, I guess, take the opportunity to ask a few follow ups or just maybe do some cleanup. So following up on the SmartDose question, could you share anything in terms of what are the what's the status of discussions pursuant to getting the price that I think you hoped to get? Essentially, I think you had hoped to turn those incentive into durable pricing.

[Doug Schenkel, Managing Director at Wolfe Research LLC]

That obviously hasn't happened yet. So what's the status of those discussions? I just want to confirm there's nothing in guidance for pricing benefits related to SmartDose. So that's the first topic. The second follow-up I want to ask is on tariffs.

[Doug Schenkel, Managing Director at Wolfe Research LLC]

I just want to confirm there's no pricing or tariff surcharge benefit factored into your new guidance assumptions. And you talked about working towards further mitigation efforts. Those, I think, could be amongst those. I just want to make sure those aren't in guidance right now. And then lastly, on operating margin guidance for the year, which I don't think you provided, which is normal.

[Doug Schenkel, Managing Director at Wolfe Research LLC]

I'm sorry if I missed that. But it looks like mathematically you're targeting around 19%. I want to make sure I'm in the right neighborhood. If so, then looking ahead, how far away sitting here today are you from getting back to that? I think it's 23% LRP target.

[Doug Schenkel, Managing Director at Wolfe Research LLC]

Thank you.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Well, I'll

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

try and take those in sequence. So from the SMART dose, we have not embedded anything in our guidance related to price guess at this point. So if there's anything there, that's upside. And then on the tariffs, we've given a net figure. There's a lot of mitigation work that we're doing around customers and looking at passing through some of those tariff charges.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Again, not embedded in the guidance at this point until we actually get agreement on that so we're not overextending ourselves. We're giving you the clearest picture we can. And again, as you'll appreciate, it's a moving target at the moment given what's happening. So essentially we're trying to be relatively conservative around the tariff approach. Operating margin, we typically don't guide, but I don't think you're a million miles away based on the assumption that you've made.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

And then getting back to the higher operating margin, I think you called out 23, for us to get back to that margin, we need to be at LRP, and we would typically be targeting a similar mix profile compared to what we experienced, I would think, nearly part of destocking in the 2023 timeframe, and that would get us back to that margin. So it's really getting back to LRP, seeing biologics, getting back to that double digit growth rate that we called out in the past and obviously growth in NANX-one and mix shift and GLP-1s. And we are starting to see traction in some of those areas. As we've said, we believe it's going to take some time to transition back to LRP. It's not going to be overnight or a hockey stick based on what we see today.

[Operator]

Thank you. Our next question comes from Mac Itosh with Stephens. Your line is open.

[Mac Etoch, Senior Research Associate at Stephens Inc]

Good morning and thank you for taking my questions. Just a few, but I appreciate the color around 2Q. It seems to be a little bit of outside of what The Street was modeling and what I was expecting as well. So maybe can you just discuss what your how the year is progressing as compared to your internal expectations thus far? And, yeah, we'll go from there.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Mac, thanks for the question. The year is progressing as we anticipated. The one area that we did call out was around the HPP products components. And that was really what Bernard discussed earlier around a little bit lightness in price. And also we're working through a shift in demand into one particular plant, but that will be at the near term that we will work through.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

But in general, we're seeing the trends that we anticipated for the rest of the year. I would say to be clear on biologics, as I mentioned, there's two elements to that. What you're gonna see, especially with HVP is that in the back half of the year, reason why we're calling out strong high single digits on HVP components is because that's when we see the biologics continue to escalate based on the demand that we're seeing with our customers. And then the offset of that little bit is in the biologic spaces around this SmartDose we called out where the incentives that we had in Q2 and Q3 of last year don't I'm sorry, Q3 and Q4. Thank you.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Don't aren't planned to be repeating at the end of this year. So that kind of gives you perspective, but really consistent as we discussed a couple months ago.

[Mac Etoch, Senior Research Associate at Stephens Inc]

Got it. And given the costs associated with the restructuring, it appears you may have already accounted for this and the investments in R and D and SGA with the original guidance. But is it fair to assume these costs will not reoccur? And secondly, what all do the restructuring entail?

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yeah, because like once the costs are out, they're not gonna reoccur, and then we have some various smaller levels of consolidation at some of our sites. Most of that restructuring work is done at this point. And the cost savings that come from that are embedded in the guidance.

[Operator]

Thank you. Our next question comes from Patrick Donnelly with Citi. Your line is open.

[Patrick Donnelly, Managing Director at Citi]

Hey, guys. Thanks for taking the questions. Maybe another one on the high value components piece. Certainly appreciate that shift in demand to the one plant you talked about. Just curious in terms of the ramp, what are you guys seeing on the order front?

[Patrick Donnelly, Managing Director at Citi]

Just wondering on the visibility, if you're continuing to see the orders improve, destocking lift and just the confidence in that second half ramp given again some of the stuff seems temporary. So just wanted to talk through the order trends there.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yes, Patrick, very good question and good morning. Yes to both of those elements. Destocking where it's consistent what we anticipated throughout the year. Obviously pharma has subsided. We're comfortable in the pharma and the biologics.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

We commented that a while back there will be destocking continue the first part of twenty twenty five. But as I just mentioned earlier, that we'll see a ramp up in the second half and the demand profile based on orders that we're receiving supports that statement. And then generics will persist throughout 2025. But again, no change to what we discussed before on the destocking side. So the order patterns are, we're feeling good about the demand.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And it's consistent to what we anticipated and guided that it will be a sequential improvement as we go throughout the year. And then, I'm not gonna give guidance going forward, but it's favorable view that we see today on the order patterns.

[Patrick Donnelly, Managing Director at Citi]

Okay. That's helpful. And then maybe one for Bernard, just following up on Doug's question on the pricing. It sounds like you guys are working with customers to pass through some of the pricing on the tariff piece. Can you talk about how those conversations are going?

[Patrick Donnelly, Managing Director at Citi]

And then it doesn't sound like it's embedded in the guide, at least on the revenue side. So what would

[Patrick Donnelly, Managing Director at Citi]

the impact be if you

[Patrick Donnelly, Managing Director at Citi]

did pass along some of those pricing? It feels like maybe

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

the offset is built into

[Patrick Donnelly, Managing Director at Citi]

the P and L, but not the revenue. I just want to make sure we're understanding that appropriately. Thank you,

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

Yeah, the offsets, there are additional offsets that we are working on that are not embedded in the P and L today. At this point, given that it's a very fluid situation, I'm not prepared really to give a number on that until we get a clear line of sight as to what that would be an agreement with our customers. What I would say is based on how we've been able to guide tariffs and assess this, we believe there are mitigation factors on a number of different levels that we can work through over the next number of months to help mitigate some of that number. And on our Q2 call, we'll give you a greater level of clarity around that when we have it ourselves.

[Operator]

Thank you. Our next question comes from Matt Larue with William Blair. Your line is open.

[Matt Larew, Research Analyst - Healthcare at William Blair]

Hi, good morning. The first is a follow-up to your progress on the automated line. Obviously, that's something you've been speaking about and working towards for the last couple of years. Eric, at this point, do you have enough pieces in place that made enough progress that the timeline you cited that you feel confident won't slip or are there sort of additional hurdles remaining that potentially could put that timeline at risk?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

That may ask a question. We're on schedule in line with the schedule that we communicated towards this end of the year. We'll have validation and start moving towards commercialization. So pleased with the progress more recently, you're right, a couple years ago we had some delays, but we are in a good position today as we move towards the schedule for the end of the year.

[Matt Larew, Research Analyst - Healthcare at William Blair]

Okay, thanks. Then the second one is kind of a broader question around and long term growth. Obviously, as you are emerging from this period of destocking and hopefully getting back to longer term growth relative to perhaps a couple of years ago, GLPs as a percentage of revenue. And I'm thinking just on the component side, even factoring in contract manufacturing, it's a bigger piece of the revenue book. Maybe eighteen months ago, the consensus would have been that would have been growth accretive and perhaps with the early oral readout and others coming.

[Matt Larew, Research Analyst - Healthcare at William Blair]

Maybe there's some debate as to whether it might be growth dilutive. So just curious how you're thinking about growth in the future of what you're hearing from customers, including those that may have molecules delivered both using your products and potentially oral. Then beyond thinking more broadly on products and the category you play in, whether you still feel confident in the longer term growth plan you've outlined?

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

Yeah, Matt, that's great question. And I know there's some recent news that stimulated more conversations about oral. But let me step back a moment and just simply say the benefit that we The position where we are in the market right now with our HVP portfolio and how we're able to support multiple customers, a very diverse portfolio of customers, very diverse portfolio of which type of molecules we're touching in regards to our primary containment and delivery devices. So while GLP-one is a fast growing area, we still are excited about other areas of the business too as we continue to see new drug launches. And I'm very pleased with the results of the Q1 with the approvals that we've seen and what we're participating on.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

So to answer your question directly though, in the GLP-1s, we have been in discussions with our customers for a of a long period of time in regards to oral versus injectables. In our position, I'd rather have our customers talk about how they see the market shifting. But when we modeled our investments, when we modeled forecast, we took that in consideration of these various inputs of the potential impact of orals. We do still believe majority of the delivery of GLP-1s in the future will continue to be injectables. However, there will be a space one day in regards to oral.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And I would say our customers in a better position to say that. But we're positioned well, what's really good about the GLP-one growth for us is the assets we put in for COVID are fungible for GLP-1s. We think about HPP processing, the washing, the sterilization and etcetera, in our HPP plants. So we're leveraging existing assets. And again, as I said, we modeled our future growth based on some assumptions of a shared market between injectables and oral.

[Operator]

Thank you. Our next question comes from Kyle Cruz with UBS. Your line is open.

[Analyst]

Hey, thank you for taking the questions. With regards to the updated adjusted EPS guide, if you walk through the FX adjustment tax benefit and the tariff headwind, it seems like core EPS was increased by an implied $0.15 Is that a result of the restructuring efforts?

[Analyst]

And then secondly, could you talk to the incremental opportunity you see from drug handling and attempt to size it? Thank you.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

On the guidance, not specifically all around restructuring. We did see an improvement in efficiencies and profitability across a number of our businesses, our proprietary business. We saw improvements in contract manufacturing. So the beat was really operationally driven. And so we passed on a certain amount of that beat.

[Bernard Birkett, Senior VP & CFO at West Pharmaceutical Services]

And then there's an element regarding timing on some spend, particularly around R and D and SG and A that we expect to move into future quarters. But really, it's business performance rather than restructuring.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And Kyle, thanks to Bernard.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And Kyle, I'll address your question in regards to drug handling. It's an exciting opportunity for us. It's very early. We do have a few customers in a smaller scale that we're working on adopting the technology and start that capability. We do have in our Dublin facility, we have a significant portion of that asset will be to support drug handling.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

So it's early for us, but what's exciting about for us at West is just a continuum of downstream. And it just shows you the confidence of our existing customers have with us and not just providing the components or the devices for their drug molecules, but also now handling some of the drug handling and then going into the market. So it's early, we'll update you as we go forward. We're excited about the prospect. It's leveraging our competencies, it's leveraging our existing customers.

[Eric Green, Chair, President & CEO at West Pharmaceutical Services]

And it's just a continuum of what we do today in the marketplace.

[Operator]

Thank you. I'm showing no further questions at this time. I would now like to turn it back to John Sweeney for closing remarks.

[John Sweeney, Vice President of Investor Relations at West Pharmaceutical Services]

Thank you so much for joining us today on the call. An online archive of the broadcast is available on our website at westpharma.com in the Investor Relations section. Additionally, you can access a replay for thirty days following the presentation by using the dial out numbers on the conference IDs provided at the end of the day's earnings release. That concludes the call. Thank you.

[John Sweeney, Vice President of Investor Relations at West Pharmaceutical Services]

Have a great day.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• John Sweeney, Vice President of Investor Relations
• Eric Green, Chair, President & CEO
• Bernard Birkett, Senior VP & CFO

Analysts

• Paul Knight, Managing Director at KeyBanc Capital Markets
• Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities
• Justin Bowers, Analyst at Deutsche Bank
• Executive
• Michael Ryskin, Managing Director at Bank of America Merrill Lynch
• Dave Windley, Managing Director at Jefferies LLC
• Daniel Markowitz, Vice President at Evercore ISI
• Thomas DeBourcy, Principal at Nephron Research LLC
• Doug Schenkel, Managing Director at Wolfe Research LLC
• Mac Etoch, Senior Research Associate at Stephens Inc
• Patrick Donnelly, Managing Director at Citi
• Matt Larew, Research Analyst - Healthcare at William Blair
• Analyst