West Pharmaceutical Services makes the bits and pieces of health care products that you may not notice, but you'd have a hard time doing without. The firm makes drug packaging components and offers other services to pharmaceutical companies. Its products include seals and stoppers for injectable medications and disposable syringes and IV parts. The Pharmaceutical Packaging Systems segment manufactures drug packaging, disposable medical components, and laboratory services products. The Pharmaceutical Delivery Systems division focuses on drug administration items, such as prefillable syringe systems.
The company's West Analytical Services helps drug companies meet packaging regulatory requirements and its Medimop Medical Projects produces devices used to mix powder drugs with a diluting material to make them ready for injection.
West realigned its business operations in 2010 into its current operating structure of two primary divisions: Pharmaceutical Packaging Systems and Pharmaceutical Delivery Systems. The company made the move to cut costs and align production capacity and its workforce with a downward turn in demand. Along with creating two new divisions, the plan included a workforce reduction (about 100 positions), discontinuing non-core initiatives, and consolidating some of its manufacturing operations. West intends to grow the divisions' operations by introducing new products and making selective acquisitions.
West has manufacturing facilities throughout the world, including locations in Florida, Indiana, and Pennsylvania in the US, and in Brazil, Denmark, France, Serbia, and Singapore abroad. In 2011 the company broke ground on a new manufacturing plant in China, its second in that country, which is expected to begin production in 2013. With growth in the Asia/Pacific region expected to continue, the new plant will help West increase its sales to that market. Currently US sales make up almost 50% of revenues, with sales in Europe close behind with about 40%.
The company's strategic plan for growing its Packaging Systems segment includes developing new products, expanding geographically, making strategic acquisitions, and segmenting consumer markets. Its plan for its Delivery Systems segment includes developing and commercializing proprietary multi-component systems for administering injectable drugs and other health care applications.
In fiscal 2011 West achieved solid year-over-year financial results with net sales increasing almost 8% to just under $1.2 billion. Net income for 2011 increased by more than 14% to roughly $76 million compared to $65 million in 2010. The company's recorded gross profit of $339 million was an increase of almost 7%. – less