Eric M. Green
President, Chief Executive Officer and Director at West Pharmaceutical Services
Thank you, Quintin, and good morning, everyone. Thanks for joining us today. We will start on slide five. I'm pleased to report that we delivered a strong first quarter. This was driven by double-digit organic sales growth with increasing demand for our high-value products. Our confirmed order book for the rest of 2022 and into 2023 remains as strong as ever, primarily driven by non-COVID-based business. And to provide you more color, over half of the order book is coming from biologics demand. These results were delivered despite several macroeconomic challenges that are impacting all companies and sectors. We have taken proactive measures to mitigate the risk of these challenges and ensure the continuity of critical components to our customers. For example, inflation. We're adjusting our pricing strategy and have enacted surcharges as a pass-through to offset increasing costs of raw materials, energy and transportation. Supply chain. Our raw material and proprietary medical device components are sourced from across the globe.
We have increased our inventory of these key raw materials to minimize any supply disruption. And we continue to execute and monitor our business continuity plans with respect to these issues, including the war in Ukraine and the recent pandemic surge in China. Turning to slide six. Our team members across the globe continue to demonstrate their passion to improve patient lives as they remain focused on our strategic initiatives of execute, innovate and grow. Starting with the first pillar of execute. We continue to deliver the key drivers of growth in Q1 with strong customer demand of HVP components, including NovaPure and Westar. There was solid demand in the quarter across all market units and a positive outlook remains for the rest of the year. And in particular, for our Biologics market segment, which is now greater than 42% of our total sales, we see both existing and new customers continue to spec our highest level of components by West or our partner Daikyo for their sensitive molecules. Our capital spending investments through expansions and optimizing productivity across the global operations remain on track.
To date, almost all of our 2020 expansion phases have been installed, validated and in production, and we're making good progress on the 2021 capital expansion plans, some of which will come online in the second half of 2022 and throughout 2023. With the accelerated biologics demand for NovaPure, we have executed additional support for NovaPure future demand as well as other HVP finishing capabilities. Expansion construction is underway and will be online towards the back half of this year with commercial production in 2023. Shifting to West team of scientific and technical experts. We continue to educate and share insights in biologics, combination products and container closure integrity, which are priority areas in pharmaceutical packaging. At the recent PDA Annual Meeting, several of our West experts were recipients of prestigious awards.
Now to innovate. We need to fuel innovation to develop future products, solutions and services that connect the dots across science and technology to create customer value. We're doing so by investing in external opportunities that complement our current business needs such as our partnership with TECHIN to create a research center of excellence in combination with West scientific expertise, the Corning collaboration as we expand our HVP value proposition to lead the industry from components to a truly integrated system of elastomer-glass and building technologies like the recent collaboration with Pneuma Systems to develop a family of fluid flow technologies for drug delivery. I'm pleased of the progress our R&D team is making around innovate. Moving to the final pillar, growth, which includes uses of cash. We're working from a position of strength as we believe we have a long horizon of continued strong organic sales growth and margin expansion. As we have demonstrated over the past two years, we have increased our capital spending for capacity expansion at existing sites across our global network to support our organic growth initiatives.
In addition, we have made inorganic investments such as partnerships with Corning. Our continued focus within these three strategic pillars, execute, innovate and grow, allows us to be more responsive, leverage our assets more effectively and support the trends that are happening in the industry today. This was most evident from our recent site visits in Dublin and Waterford, Ireland. For example, in Dublin, I saw firsthand how the digitalization of our manufacturing technologies is providing real-time data, enabling our team to raise the bar in operational performance with higher yields and efficiencies. At Waterford, the capital investments over the last 1.5 years have significantly increased capacity with additional lines producing HVP product to meet increased demand. And we're seeing early success with our next-generation fully integrated automation that we believe will scale and transfer across the network for a combined benefit of higher quality production and higher manufacturing throughput.
Lastly and proudly, the hard work of our Waterford team was acknowledged by the Ireland-U.S. Council as we received the Global Public Service Award for our commitment during the pandemic. Now I'll turn it over to our CFO, Bernard Birkett, who will provide more detail on our financial performance.