West Pharmaceutical Services (WST) Bank of America Global Healthcare Conference 2026 summary

Cybersecurity incident and operational response

• Detected a system intrusion in early May, leading to a global shutdown of systems to assess and contain the breach.

• Engaged Unit 42 from Palo Alto Networks for forensic investigation and support.

• Data was encrypted and subsequently secured; all operating systems are now up, with shipping and receiving resumed.

• Several manufacturing sites are operational, with others being methodically brought online to ensure system security.

• Customers were promptly informed and have been supportive, with the company prioritizing customer needs during recovery.

Financial performance and growth drivers

• Achieved a strong start to 2026, with double-digit growth in HVP non-GLP-1 components, driven by biologics and biosimilars.

• Broad-based outperformance across all major product lines, with capacity expansion at Eschweiler contributing significantly.

• Organic growth reached 15% in Q1, with guidance for 8% in Q2 and 7%-9% for the full year.

• GLP-1 revenues grew from $100 million to $150 million year-over-year in Q1, with expectations for continued high-teens growth.

• Annex 1 regulatory changes and increased customer engagement in contamination control are driving additional growth.

Capacity, supply chain, and cost management

• Capacity expansion was achieved mainly through workforce increases and operational improvements, not just CapEx.

• Level loading and validation of secondary sites are freeing up capacity and supporting supply-demand equilibrium.

• No significant impact from oil price volatility or Middle East conflict; cost increases are being managed through surcharges and hedging.

• Customers have accepted surcharges, which are above normal contractual increases, to offset input cost pressures.