West Pharmaceutical Services, Inc.

**Strong Q3 Performance and Adjusted EPS Guidance Increase:** West Pharmaceutical Services reported net sales of $746.9 million for Q3 2024, reflecting a marginal organic sales decline of 0.5%. However, the company is increasing its full-year adjusted diluted EPS guidance to a range of $6.55 to $6.75, up from $6.35 to $6.65, driven by stronger operating margins and effective cost management.

**Destocking Impact and Market Normalization:** The company is experiencing varying levels of destocking among its customer base, with a positive shift noted in pharma, suggesting a return to normalization. Specifically, biologics are expected to improve in Q4, with caution towards the generic segment, which may continue destocking into 2025. Execution capabilities have allowed West to meet customer demands effectively.

**Contract Manufacturing Growth Potential:** The contract manufacturing segment's gross profit margin improved to 19.9%, driven by production efficiencies. The company continues to invest in capacity expansion in Grand Rapids and Dublin, focusing on GLP-1 products and high-value contract manufacturing, which presents an opportunity for margin expansion over the long term.