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West Pharmaceutical Services Annual Report (Amendment), Year Ended Dec 31, 2001

Filing Date
Filed August 29, 2002
Period End
December 31, 2001
Security
WST
In the record · 2016–202610-K1110-Q338-K118

WST filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 118 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Material agreement8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 10-K/A filed August 29, 2002. Cited figures are marked; the original filing is the authoritative source.

West Pharmaceutical Services, Inc. (WST) filed this annual report on Form 10-K for fiscal 2001, describing a company that applies value-added technologies to bringing drug therapies and healthcare products to global markets.

The company operates in two segments: Pharmaceutical Systems, which makes elastomer stoppers, metal seals, and other drug packaging and device components, and Drug Delivery Systems, which develops proprietary drug delivery technologies and provides clinical and consumer research services. At December 31, 2001, the company had 3,960 employees. Business Becton Dickinson and Company accounted for approximately 13%a of 2001 consolidated net sales.

During 2001 the company sold its contract manufacturing and packaging business unit to DPT Lakewood, Inc. for $29.8 millionb ($28 million in cash and a $1.8 million note due in 2003), recording a net loss of $25.2 million, or $1.76 per share. The company consolidated into two operating segments following the sale and used the proceeds to repay outstanding debt. It recorded a net restructuring charge of $2.9 million in 2001, following a $15.0 million restructuring charge in 2000.

At December 31, 2001, Pharmaceutical Systems order backlog was approximately $105 millionc, compared with approximately $92 million at the end of 2000, and Drug Delivery Systems backlog was $4.1 million, compared with $6.5 million a year earlier. The company's financial statements are incorporated by reference from its 2001 Annual Report to Shareholders, which is not reproduced in this filing.

02—Key points

Key Highlights

  1. Two operating segments after 2001 consolidation: Pharmaceutical Systems (stoppers, metal seals, device components, contract lab testing) and Drug Delivery Systems (drug delivery development and clinical research).
  2. Sold contract manufacturing and packaging unit to DPT Lakewood, Inc. in November 2001 for $29.8 million, resulting in a net loss of $25.2 million, or $1.76 per share.
  3. Net restructuring charge of $2.9 million in 2001, versus a $15.0 million restructuring charge in 2000.
  4. Pharmaceutical Systems order backlog of approximately $105 million at December 31, 2001, up from approximately $92 million at end of 2000.
  5. Drug Delivery Systems backlog of $4.1 million at December 31, 2001, down from $6.5 million at December 31, 2000.
  6. Becton Dickinson and Company accounted for approximately 13% of 2001 consolidated net sales; the next ten largest customers together accounted for approximately 30%.
  7. Development and engineering expenditures were approximately $10.0 million in 2001, and drug delivery R&D expenditures were $7.8 million in 2001.

03—Questions

Frequently Asked Questions

  1. How large is West Pharmaceutical's workforce and where is it headquartered?

    The company had 3,960 employees as of December 31, 2001. Its executive offices are at 101 Gordon Drive in Lionville, Pennsylvania, about 35 miles from Philadelphia.

  2. Why did the company report a loss on the 2001 divestiture?

    The sale of the contract manufacturing and packaging business unit to DPT Lakewood, Inc. for $29.8 million produced a net loss of $25.2 million, or $1.76 per share. The filing states that the balance of the proceeds was used to repay outstanding debt.

  3. How concentrated is the company's customer base?

    Becton Dickinson and Company accounted for approximately 13% of 2001 consolidated net sales, and the company expects to continue as a major BD supplier. No customer other than BD accounted for more than 4% of 2001 consolidated net sales.

  4. What is the company's international exposure?

    The company states that sales to customers in the Asia/Pacific and South American markets represented less than 11% of consolidated sales in 2001. The filing also notes that the company's financial condition is affected by exchange-rate fluctuations and that it hedges certain of these exposures, with details incorporated from the 2001 Annual Report to Shareholders.

  5. What does the company's drug delivery business aim to achieve?

    West Drug Delivery develops proprietary delivery technologies for routes including nasal, oral, parenteral, pulmonary, rectal and vaginal, and seeks to license them to pharmaceutical companies. The company states that a significant amount of future income is expected to come from licensing this technology to customers.

04—Continue

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