西式醫藥服務 (WST) 2023 Q2 法說會逐字稿

Thank you for standing by, and welcome to the West Pharmaceutical Services Q2 2023 Earnings Conference Call. (Operator Instructions) Please be advised today's conference call is being recorded.

感謝您的耐心等待，歡迎參加 West Pharmaceutical Services 2023 年第二季度收益電話會議。 （操作員說明）請注意，今天的電話會議正在錄音。

I would now like to turn the call over to Mr. Quintin Lai, Vice President of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係副總裁 Quintin Lai 先生。請繼續。

Thank you, Valerie. Good morning, and welcome to West's Second Quarter 2023 Conference Call. We issued our financial results this morning and the release has been posted in the Investors section on the company's website located at westpharma.com.

謝謝你，瓦萊麗。早上好，歡迎參加 West 2023 年第二季度電話會議。我們今天早上發布了財務業績，該新聞稿已發佈在公司網站 westpharma.com 的投資者部分。

This morning, Eric Green and Bernard Birkett will review our financial results, provide an update on our business and present an update on our financial outlook for the full year 2023. There's a slide presentation that accompanies today's call and a copy of that presentation is available on the Investors section of our website.

今天早上，埃里克·格林 (Eric Green) 和伯納德·伯克特 (Bernard Birkett) 將回顧我們的財務業績，提供我們業務的最新情況，並介紹我們 2023 年全年財務前景的最新情況。今天的電話會議附帶一個幻燈片演示文稿，您可以獲取該演示文稿的副本在我們網站的投資者部分。

On Slide 4 is our safe harbor statement. Statements made by management on this call and in the accompanying presentation contain forward-looking statements within the meaning of U.S. federal securities laws. These statements are based on our beliefs and assumptions, current expectations, estimates and forecasts. The company's future results are influenced by many factors beyond the control of the company. Actual results could differ materially from past results as well as those expressed or implied in any forward-looking statement made here. Please refer to today's press release as well as any other disclosures made by the company regarding the risks to which it is subject, including our 10-K, 10-Q and 8-K reports.

第 4 張幻燈片是我們的安全港聲明。管理層在本次電話會議和隨附演示文稿中發表的聲明包含美國聯邦證券法含義內的前瞻性聲明。這些陳述基於我們的信念和假設、當前的期望、估計和預測。公司未來的業績受到許多公司無法控制的因素的影響。實際結果可能與過去的結果以及此處所做的任何前瞻性聲明中明示或暗示的結果存在重大差異。請參閱今天的新聞稿以及公司就其所面臨的風險所做的任何其他披露，包括我們的 10-K、10-Q 和 8-K 報告。

During today's call, management will make reference to non-GAAP financial measures, including organic sales growth, adjusted operating profit, adjusted operating profit margin and adjusted diluted EPS. Reconciliations and limitations of the non-GAAP financial measures to the most comparable financial results prepared in conformity to GAAP are provided in this morning's earnings release.

在今天的電話會議上，管理層將參考非公認會計準則財務指標，包括有機銷售增長、調整後營業利潤、調整後營業利潤率和調整後攤薄每股收益。今天上午的收益報告中提供了非公認會計原則財務指標與按照公認會計原則編制的最具可比性的財務結果的調節和限制。

I now turn the call over to our CEO, Eric Green.

我現在將電話轉給我們的首席執行官埃里克·格林 (Eric Green)。

Thank you, Quintin, and good morning, everyone. Thanks for joining us today. We will start on Slide 5. I'm pleased to report that we delivered a solid second quarter, which has us positioned for an even stronger performance in the second half of the year. The continued success is a result of our proven growth strategy as we capitalize on the robust customer demand and ongoing capacity expansion projects. And proudly, the strength of the One West team, and unwavering commitment to our purpose continues to set us apart as the trusted market leader. I want to acknowledge the team members across the globe and say thank you.

謝謝你，昆汀，大家早上好。感謝您今天加入我們。我們將從幻燈片 5 開始。我很高興地報告，我們第二季度的業績表現強勁，這使我們能夠在今年下半年取得更強勁的業績。持續的成功是我們行之有效的增長戰略的結果，因為我們利用了強勁的客戶需求和正在進行的產能擴張項目。值得自豪的是，One West 團隊的實力以及對我們目標的堅定承諾繼續使我們成為值得信賴的市場領導者。我想向全球各地的團隊成員表示感謝並表示感謝。

The second quarter performance was driven by our base Proprietary products business, which grew mid-teens. As expected, COVID-19 sales continued to drop as the second quarter last year was the peak of our pandemic-related sales. With respect to our base business, the Biologics market unit again grew double digits with stable demand. Our Generics market unit continued to benefit from HVP capacity expansions as the base grew strong double digits. And the Pharma market unit base grew high single digits.

第二季度的業績是由我們的基礎專有產品業務推動的，該業務實現了十幾歲左右的增長。正如預期的那樣，由於去年第二季度是我們與大流行相關的銷售的高峰，因此 COVID-19 銷售額繼續下降。就我們的基礎業務而言，生物製品市場單位再次以兩位數增長，需求穩定。隨著基數強勁兩位數增長，我們的仿製藥市場部門繼續受益於 HVP 產能擴張。製藥市場單位基數以高個位數增長。

In addition, Contract Manufacturing experienced significant momentum in the quarter with delivery of components for injection-related devices.

此外，合同製造在本季度經歷了強勁的勢頭，交付了注射相關設備的組件。

Turning to Slide 6. The key levers of growth in Q2 were primarily driven by HVP components and delivery systems. Our participation rate in recently approved new molecular entities in the U.S. and Europe remains strong. The components developed by West or our partner, Daikyo, are addressing some of the most critical therapeutic areas around immunology, oncology, including gene therapy applications, cardiovascular, neurology, diabetes and obesity. This is also reflected in the solid order book across our Biologics, Generics and Pharma customers, a clear reflection of the needs of the market. And we continue to make good progress on bringing down lead times for certain HVPs. We're seeing our order book patterns reverting to a more normal pre-pandemic cadence.

轉向幻燈片 6。第二季度增長的關鍵槓桿主要由 HVP 組件和交付系統驅動。我們對美國和歐洲最近批准的新分子實體的參與率仍然很高。 West 或我們的合作夥伴 Daikyo 開發的組件正在解決免疫學、腫瘤學方面一些最關鍵的治療領域，包括基因治療應用、心血管、神經病學、糖尿病和肥胖症。這也反映在我們的生物製品、仿製藥和製藥客戶的可靠訂單中，清楚地反映了市場的需求。我們在縮短某些 HVP 的交貨時間方面繼續取得良好進展。我們看到我們的訂單模式恢復到大流行前的更正常節奏。

In addition, we continue to work closely with customers to update demand trends for the near and long term. These trends underscore the importance of our capacity investments, which are making a significant impact across West global operations. For example, at our West Kinston plant, we have installed, validated and brought online additional HVP capacity for NovaPure plungers. Although it is early days, we're pleased with the initial output as operations ramp up.

此外，我們繼續與客戶密切合作，更新近期和長期的需求趨勢。這些趨勢強調了我們產能投資的重要性，這對西方全球業務產生了重大影響。例如，在我們的西金斯頓工廠，我們為 NovaPure 柱塞安裝、驗證並上線了額外的 HVP 容量。儘管現在還處於早期階段，但隨著運營的增加，我們對最初的產出感到滿意。

Recently, I had the opportunity to visit West site in Singapore, where we have enhanced the capabilities to meet growing HVP demand from our commercial customers in the APAC region. It was exciting to see the facility fully equipped with industry-leading coating, pharmaceutical washing, sterilization and automated vision inspection capabilities for elastomers. This marks another exciting milestone on our journey towards meeting the industry's increasing emphasis on biologics.

最近，我有機會參觀了位於新加坡的 West 工廠，我們在那裡增強了能力，以滿足亞太地區商業客戶不斷增長的 HVP 需求。令人興奮的是，該設施完全配備了行業領先的彈性體塗層、藥物清洗、滅菌和自動視覺檢測功能。這標誌著我們在滿足行業對生物製劑日益重視的道路上又一個令人興奮的里程碑。

Shifting to Slide 7. At the end of June, we published our 2022 ESG report on the company website. I am proud of the progress the organization has made towards the new 5-year targets with even greater scientific rigor and quantitative focus on environmentally based targets. We know to fulfill our purpose effectively together as One West, we must continue to progress the sustainability goals, diversity and inclusion and success around our charitable endeavors. These collective efforts from last year were recognized by several organizations, including being named as one of America's Climate Leaders by USA today.

轉到幻燈片 7。6 月底，我們在公司網站上發布了 2022 年 ESG 報告。我對該組織在實現新的 5 年目標方面取得的進展感到自豪，該目標具有更加嚴格的科學嚴謹性和對環境目標的定量關注。我們知道，為了有效地共同實現 One West 的目標，我們必須繼續推進可持續發展目標、多樣性和包容性，並圍繞我們的慈善事業取得成功。去年的這些集體努力得到了多個組織的認可，包括被《今日美國》評為美國氣候領導者之一。

Moving to Slide 8. Our full year 2023 organic sales growth outlook remains unchanged at approximately 3% to 4% and we're raising the 2023 financial outlook for overall net sales and adjusted diluted EPS.

轉到幻燈片 8。我們的 2023 年全年有機銷售增長前景保持在約 3% 至 4% 不變，並且我們提高了 2023 年整體淨銷售額和調整後稀釋每股收益的財務前景。

Now I'll turn the call over to Bernard, who will go into more detail from the quarter. Bernard?

現在我將把電話轉給伯納德，他將詳細介紹本季度的情況。伯納德？

Thank you, Eric, and good morning. So let's review the numbers in more detail. We'll first look at Q2 2023 revenues and profits, where we saw a low single-digit decrease in organic net sales and a decline in operating profit and diluted EPS compared to the second quarter of 2022.

謝謝你，埃里克，早上好。讓我們更詳細地回顧一下這些數字。我們首先看一下 2023 年第二季度的收入和利潤，與 2022 年第二季度相比，有機淨銷售額出現了個位數的低幅下降，營業利潤和稀釋後每股收益也出現了下降。

I will take you through the drivers impacting sales and margin in the quarter as well as some balance sheet takeaways. And finally, we will provide an update to our 2023 guidance.

我將向您介紹影響本季度銷售額和利潤率的驅動因素以及一些資產負債表要點。最後，我們將提供 2023 年指南的更新。

First up, Q2. Our financial results are summarized on Slide 9 and the reconciliation of non-U.S. GAAP measures are described in Slide 17 to 21. We recorded net sales of $753.8 million, representing an organic sales decline of 2.5%. COVID-related net revenues are estimated to have been $20 million in the quarter, an approximate $106 million reduction compared to the prior year.

首先，Q2。幻燈片 9 總結了我們的財務業績，幻燈片 17 至 21 描述了非美國公認會計準則衡量標準的調節。我們的淨銷售額為 7.538 億美元，有機銷售額下降了 2.5%。本季度與新冠病毒相關的淨收入預計為 2000 萬美元，比上一年減少約 1.06 億美元。

Looking at Slide 10. Proprietary products organic net sales declined 5.5% in the quarter. High-value products, which made up approximately 74% of Proprietary product sales in the quarter declined due to the reduction in COVID-related net revenues. Looking at the performance of the market units, the Generics market unit delivered high single-digit growth led by sales of Westar components and self-injection related devices. While the Pharma market unit experienced mid-single-digit growth led by Envision and Westar components as well as admin systems.

請看幻燈片 10。該季度專有產品的有機淨銷售額下降了 5.5%。由於與新冠病毒相關的淨收入減少，佔本季度專有產品銷售額約 74% 的高價值產品出現下降。從市場部門的表現來看，仿製藥市場部門在 Westar 組件和自註射相關設備的銷售帶動下實現了高個位數增長。而製藥市場部門則在 Envision 和 Westar 組件以及管理系統的帶動下實現了中個位數增長。

And the Biologics market unit saw a double-digit decline due to a reduction in sales related to COVID-19 vaccines. Our Contract Manufacturing segment experienced a double-digit net sales growth primarily driven by an increase in sales of components related to injection-related devices. Our adjusted operating profit margin of 24.5% was a 490 basis point decrease from the same period last year.

由於與 COVID-19 疫苗相關的銷售減少，生物製劑市場部門出現了兩位數的下降。我們的合同製造部門經歷了兩位數的淨銷售額增長，主要是由於與註射相關設備相關的組件銷售增長所致。調整後營業利潤率為 24.5%，比去年同期下降 490 個基點。

Finally, adjusted diluted EPS declined 14.6% for Q2. Excluding stock-based compensation tax benefits, EPS decreased by approximately 18%.

最後，第二季度調整後攤薄每股收益下降 14.6%。不計入股票補償稅優惠，每股收益下降約18%。

Now let's review the drivers in both our revenue and profit performance. On Slide 11, we show the contributions to organic sales decline in the quarter. Sales price increases contributed $43.1 million or 5.6 percentage points of growth in the quarter, as did a foreign currency tailwind of approximately $4.4 million. Offsetting price was a negative mix impact of $61.9 million, which includes an approximate $106 million reduction in COVID-19 related net demand.

現在讓我們回顧一下我們的收入和利潤表現的驅動因素。在幻燈片 11 中，我們展示了本季度有機銷售額下降的原因。銷售價格上漲為本季度貢獻了 4,310 萬美元，即 5.6 個百分點的增長，外幣推動因素也貢獻了約 440 萬美元。抵消價格是 6190 萬美元的負面綜合影響，其中包括與 COVID-19 相關的淨需求減少約 1.06 億美元。

Looking at margin performance. Slide 12 shows our consolidated gross profit margin of 38.7% for Q2 2023, down from 41.7% in Q2 2022. Proprietary products second quarter gross profit margin of 43.9% was 230 basis points lower than the margin achieved in the second quarter of 2022. The key driver for the decline in Proprietary products gross profit margin was primarily on favorable mix from a reduction in sales related to COVID-19 vaccines, offset by sales price increases and production efficiencies.

看看利潤表現。幻燈片 12 顯示，我們 2023 年第二季度的綜合毛利率為 38.7%，低於 2022 年第二季度的 41.7%。專有產品第二季度毛利率為 43.9%，比 2022 年第二季度實現的利潤率低 230 個基點。專有產品毛利率下降的主要驅動因素主要是由於與 COVID-19 疫苗相關的銷售減少所帶來的有利組合，但被銷售價格上漲和生產效率所抵消。

Contract Manufacturing second quarter gross profit margin of 15.4% was 90 basis points below the margin achieved in the second quarter of 2022 primarily due to inflationary pressures on our plant labor costs.

合同製造第二季度的毛利率為 15.4%，比 2022 年第二季度實現的利潤率低 90 個基點，這主要是由於我們工廠勞動力成本的通脹壓力。

Now let's look at our balance sheet and review how we've done in terms of generating cash. On Slide 13, we have listed some key cash flow metrics. Operating cash flow was $307.3 million for the 6 months ended June 2023, a decrease of $17 million compared to the same period last year, a 5.2% decrease primarily due to a decline in operating results. Our second quarter 2023 year-to-date capital spending was $157.5 million, $25.6 million higher than the same period last year. We continue to leverage our CapEx to increase our high-value product manufacturing capacity.

現在讓我們看看我們的資產負債表，並回顧一下我們在產生現金方面的表現。在幻燈片 13 上，我們列出了一些關鍵的現金流量指標。截至2023年6月的6個月，運營現金流為3.073億美元，比去年同期減少1700萬美元，下降5.2%，主要是由於運營業績下降。 2023 年第二季度迄今的資本支出為 1.575 億美元，比去年同期增加 2560 萬美元。我們繼續利用資本支出來提高高價值產品的製造能力。

Working capital of approximately $1.36 billion at June 30, 2023 declined by $37.9 million from December 31, 2022, primarily due to reductions in our cash balance. Our cash balance at June 30 of $796.3 million was $98 million lower than our December 2022 balance. The decrease in cash is primarily due to our share repurchase program and higher CapEx, offset by our operating cash flow in the period.

截至 2023 年 6 月 30 日，營運資金約為 13.6 億美元，較 2022 年 12 月 31 日減少了 3,790 萬美元，主要是由於我們的現金餘額減少。截至 6 月 30 日，我們的現金餘額為 7.963 億美元，比 2022 年 12 月的餘額減少了 9800 萬美元。現金減少主要是由於我們的股票回購計劃和資本支出增加，但被我們當期的經營現金流所抵消。

Turning to Slide 8 provides a high-level summary -- sorry, turning to guidance. Slide 8 provides a high-level summary. We're updating our full year 2023 net sales guidance and expect net sales to be in a range of $2.970 billion to $2.995 billion, compared to our prior guidance range of $2.965 billion and $2.990 billion. There is an estimated full year 2023 tailwind, $20 million based on current foreign exchange rates compared to prior guidance of a tailwind of $15 million. We expect organic sales growth to be approximately 3% to 4%, unchanged from prior guidance.

轉向幻燈片 8 提供了高級摘要 - 抱歉，轉向指導。幻燈片 8 提供了高級摘要。我們正在更新 2023 年全年淨銷售額指引，預計淨銷售額將在 29.70 億美元至 29.95 億美元之間，而之前的指引範圍為 29.65 億美元至 29.90 億美元。根據當前匯率，預計 2023 年全年將實現 2000 萬美元的順風，而之前的指導為 1500 萬美元。我們預計有機銷售額增長約為 3% 至 4%，與之前的指引持平。

We're raising our full year 2023 adjusted diluted EPS guidance to be in a range of $7.65 to $7.80 compared to a prior range of $7.50 to $7.65. Also, our CapEx guidance of $350 million for the year, unchanged from prior guidance. There are some key elements I want to bring your attention to as you review our guidance. We expect full year COVID-19 related sales to be approximately $60 million, unchanged from prior guidance. Net sales guidance also includes a reduction of $8 million, resulting from a divestiture of the European facility that produced standard Proprietary product components, again, unchanged from prior guidance.

我們將 2023 年全年調整後攤薄每股收益指引上調至 7.65 美元至 7.80 美元，之前的範圍為 7.50 美元至 7.65 美元。此外，我們今年的資本支出指導為 3.5 億美元，與之前的指導保持不變。當您查看我們的指南時，我想提請您注意一些關鍵要素。我們預計全年與 COVID-19 相關的銷售額約為 6000 萬美元，與之前的指引持平。淨銷售額指引還包括因剝離生產標準專有產品組件的歐洲工廠而減少 800 萬美元，同樣與之前的指引相同。

Full year 2023 adjusted diluted EPS guidance range includes an estimated FX tailwind of approximately $0.05 based on current foreign currency exchange rates compared to prior guidance of a tailwind of $0.02. The updated guidance also includes EPS of $0.26 associated with year-to-date 2023 tax benefits from stock-based compensation. Our guidance excludes future tax benefits from stock-based compensation.

2023 年全年調整後稀釋每股收益指導範圍包括根據當前外幣匯率估計約 0.05 美元的外匯順風，而之前的指導為 0.02 美元。更新後的指引還包括與 2023 年迄今股票薪酬稅收優惠相關的 0.26 美元每股收益。我們的指導不包括基於股票的薪酬的未來稅收優惠。

I would now like to turn the call back over to Eric.

我現在想把電話轉回給埃里克。

Thank you, Bernard. To summarize on Slide 14. The solid financial performance in Q2 has us positioned well for the second half of the year. We continue to have a strong base business, which is a testament to the foundation we have built over time. As a global leader, we recognize the critical role our products play in health care across the globe, and that is why we're so dedicated to supporting patient health, both now and into the future.

謝謝你，伯納德。對幻燈片 14 進行總結。第二季度穩健的財務表現使我們為下半年做好了準備。我們繼續擁有強大的基礎業務，這證明了我們長期以來所建立的基礎。作為全球領導者，我們認識到我們的產品在全球醫療保健中發揮的關鍵作用，這就是為什麼我們如此致力於支持患者現在和未來的健康。

Valerie, we're ready to take questions. Thank you.

瓦萊麗，我們準備好回答問題了。謝謝。

(Operator Instructions) Our first question comes from the line of Larry Solow of CJS.

（操作員說明）我們的第一個問題來自 CJS 的 Larry Solow。

Congrats on another good quarter. Eric, can you maybe just give us a little more color? You actually mentioned sort of a bunch of sort of areas where you guys are driving, seeing growth just on the product line. I know a lot -- there's been a lot of talk about the GLP-1, diabetes and weight management and the growth there. But I'm just trying to get a sense. I know historically, you guys have never said or one is not to get too carried away with one group of products. But in this case, it seems like there's just been a lot of positive news and noise about the GLP-1. So can you just give us a sense of maybe color, how that's represented in your overall revenue mix today and where that could be in the future?

祝賀又一個美好的季度。埃里克，你能給我們多一點色彩嗎？您實際上提到了你們正在推動的一系列領域，看到了產品線的增長。我知道很多——有很多關於 GLP-1、糖尿病、體重管理和生長的討論。但我只是想了解一下。我知道，從歷史上看，你們從來沒有說過不要對一組產品過於著迷。但在這種情況下，似乎有很多關於 GLP-1 的積極消息和噪音。那麼，您能否讓我們了解一下顏色，它在您今天的整體收入組合中是如何體現的，以及未來可能會表現在什麼地方？

Yes. Larry, thanks for the question, and thanks for joining us on the call. When we look at where the pipeline is being developed in our success, what we call a participation rate, it continues to remain very high as we look at year-to-date as an example, and even from last year, I think we need to be clear that we're actually supporting many different therapeutic areas and not just 1 or 2. And that's what's really exciting about our portfolio as we continue to evolve our offerings that we continuously be the company to support on their primary containment, again, across many different therapeutic categories.

是的。拉里，感謝您提出問題，也感謝您加入我們的電話會議。當我們看到我們成功的渠道正在開發的地方時，我們所說的參與率，以今年迄今為止為例，它仍然保持在很高的水平，甚至從去年開始，我認為我們需要需要明確的是，我們實際上支持許多不同的治療領域，而不僅僅是 1 或 2 個。這就是我們的產品組合真正令人興奮的地方，因為我們不斷發展我們的產品，我們不斷成為支持其主要遏制的公司，再次，跨越許多不同的治療類別。

So some will have higher demand in the market, some less, such as gene therapy as you think about the number of doses. But our focus is to make sure that we're -- continue to have that high participation rate and all different areas have different type of growth trajectories over the next 5-plus years.

因此，有些藥物的市場需求較高，有些藥物的市場需求較低，例如基因治療，您需要考慮劑量數量。但我們的重點是確保我們繼續保持高參與率，並且所有不同領域在未來五年多的時間裡都有不同類型的增長軌跡。

Got it. That's fair enough. A question on just margins in Proprietary products, and for Bernard. A nice sequential improvement, little bit higher sales and I think a lot -- most of those sales look like drop to the gross margin line there. Anything unusual in this quarter compared to last quarter? It looks like COVID sales were about the same, COVID-related sales. So anything we should be aware of there that drove that sort of 150 bps sequential improvement in gross margin for Proprietary products?

知道了。這很公平。關於專有產品的利潤率的問題，是伯納德的問題。一個不錯的連續改善，銷售額增加了一點，我想了很多——其中大部分銷售額看起來都下降到了那裡的毛利率線。與上季度相比，本季度有什麼異常情況嗎？看起來新冠肺炎銷售額與新冠肺炎相關銷售額大致相同。那麼，我們應該注意哪些因素推動專有產品的毛利率連續提高 150 個基點？

Yes. It's really down to product mix. We're seeing that continued growth in high-value products ex-COVID and retain that positive impact that's flown into margin. We're also improving the throughputs within our facilities, getting better levels of efficiency, and we're seeing that partly because of the capacity that we're layering in. But, again, improvements to our existing infrastructure and that combination is delivering to those improved margins. And again, that's part of the overall construct that we've been talking about over the last number of years. So we just continue to deliver on that.

是的。這實際上取決於產品組合。我們看到，除新冠疫情之外的高價值產品持續增長，並保留了對利潤率的積極影響。我們還提高了設施內的吞吐量，獲得了更高的效率水平，我們看到這部分是因為我們正在分層的容量。但是，同樣，對我們現有基礎設施的改進以及這種組合正在交付那些提高的利潤率。再說一遍，這是我們過去幾年一直在討論的整體結構的一部分。所以我們只是繼續實現這一點。

Got it. Well, I got you Bernard, just thoughts on CapEx and sort of -- this year, I think you're maintaining a $350 million number. As you look out over the next few years, do you feel like this number, and I guess that would probably be a high-class problem, but do you feel like this CapEx level will remain at this area? Or do you see it maybe coming down as you look out?

知道了。好吧，伯納德，我只想談談資本支出以及今年的情況，我認為您將維持 3.5 億美元的數字。當您展望未來幾年時，您是否感覺像這個數字，我想這可能是一個高級問題，但您認為這個資本支出水平會保持在這個區域嗎？或者當你往外看時，你是否看到它可能會下降？

We would expect to see it normalize back to what we have been talking about pre-COVID of about 6% to 7% of revenues. But again, it's dependent on if there are other spikes in demand or investments that we need to make, we're willing to do that. We'll continue to invest in our business where it's needed. At the moment, we're investing in capacity around plungers across our high-value product network. So it's not just in one facility, it's right across the network to be able to meet the global demand from our customers.

我們預計它會恢復到我們一直在談論的新冠疫情之前收入​​的 6% 到 7% 左右的正常水平。但同樣，這取決於我們是否需要進行其他需求或投資的激增，我們是否願意這樣做。我們將繼續在需要的地方投資我們的業務。目前，我們正在對高價值產品網絡中的柱塞產能進行投資。因此，它不僅在一個設施中，而且在整個網絡中都能夠滿足我們客戶的全球需求。

We're seeing the results of that materializing as we speak, our lead times are reducing significantly. So we're getting back to pre-COVID levels. And I think by the end of Q3, our lead times will be normalized across our business. We're also layering in some strategic flex capacity, so we're able to respond to sudden increases in demand for customers. And then that capacity kind of feeds into our long-term plan as well. So it will be utilized over the kind of 5-year strategic horizon. So with CapEx, we have made, as we said, that significant investment over the last number of years and maybe a little bit similar as we move forward to next year, but then maybe starting to tail off.

就在我們說話的時候，我們看到了這一成果的實現，我們的交貨時間正在顯著縮短。所以我們正在回到新冠疫情之前的水平。我認為到第三季度末，我們整個業務的交貨時間將正常化。我們還分層了一些戰略彈性產能，因此我們能夠應對客戶需求的突然增長。然後這種能力也會融入我們的長期計劃。因此，它將在 5 年戰略期限內使用。因此，正如我們所說，在資本支出方面，我們在過去幾年中進行了重大投資，隨著我們進入明年，可能會有點類似，但隨後可能會開始減少。

Our next question comes from the line of Jacob Johnson of Stephens.

我們的下一個問題來自斯蒂芬斯的雅各布·約翰遜。

Maybe following up on the last question and kind of the investments you've made in capacity recently. I think that the #1 question we're getting, and I imagine you're getting as well from investors kind of around the magnitude of the revenue opportunity from the NovaPure plunger capacity additions. Is there any way to frame up or quantify the revenue potential of those capacity additions? And then Eric, you also mentioned kind of early days in the ramp-up at Kinston. Just curious kind of what the ramp there might look like as we think about the next 12 to 24 months?

也許會跟進最後一個問題以及您最近進行的投資類型。我認為我們收到的第一個問題，我想您也從投資者那裡得到了有關 NovaPure 柱塞產能增加帶來的收入機會大小的問題。有什麼方法可以確定或量化這些容量增加的收入潛力嗎？然後埃里克，你也提到了金斯頓的早期發展。只是好奇，當我們考慮未來 12 到 24 個月時，那裡的坡道會是什麼樣子？

Yes, I'll start with the ramp-up, just to address that quickly. As you know, we've been discussing how the installed capacity is coming in throughout 2023 and in second half, we're starting to ramp up. So we expect that to -- it's occurring today. It will continue throughout Q3 into the balance of the year. And it usually takes about 2 or 3 quarters to get to a pretty steady state.

是的，我將從加速開始，只是為了快速解決這個問題。如您所知，我們一直在討論 2023 年全年裝機容量的情況，下半年我們將開始增加。所以我們預計這會在今天發生。它將在整個第三季度持續到今年剩餘時間。通常需要大約兩到三個季度才能達到相當穩定的狀態。

And then as Bernard mentioned a little bit earlier is that we're always adding a little bit more capacity to build flex. So anticipate Kinston, particularly on the NovaPure plungers be ramping up through the balance of the year.

正如伯納德之前提到的，我們總是增加一點容量來構建柔性。因此，預計 Kinston，尤其是 NovaPure 柱塞將在今年餘下時間裡不斷增加。

Yes. Basically, the way I would frame it is that when we look at the mix of our CapEx investments, I think we've said this before, pre-COVID, it was like 50% of our CapEx deployment was around maintenance and then 50% on growth. But now what we're seeing is 70% the CapEx deployment is around growth and specifically around growth in high-value products. So the -- it's not just the growth in the revenue, it's also the growth in operating margin given the areas that we're investing. So I think that's the way we would frame it. And that ties into our long-term construct of that 7% to 9%. And if opportunities take us above that, I think we'll be in a good position to respond.

是的。基本上，我的框架方式是，當我們審視我們的資本支出投資組合時，我想我們之前已經說過，在新冠疫情之前，我們的資本支出部署的 50% 是圍繞維護，然後是 50%關於成長。但現在我們看到 70% 的資本支出部署是圍繞增長，特別是圍繞高價值產品的增長。因此，這不僅僅是收入的增長，也是考慮到我們投資領域的營業利潤率的增長。所以我認為這就是我們構建它的方式。這與我們對 7% 至 9% 的長期構建有關。如果有機會讓我們超越這個目標，我認為我們將處於有利的位置來應對。

Okay. And then maybe just a level question for you, Eric. You mentioned in your prepared comments kind of working closely with customers on demand trends. As I think about the Biologics end market, I know you're not very exposed to early-stage biotech, but there's been a lot of focus on the near-term dynamics there given funding and some prioritization we've seen in the pipeline there, which I suppose could maybe impact future commercializations at some point. But I'm just kind of curious from the seat you have and your perspective where you kind of have a longer-term view and conversations with payers over the longer term. Has there been any kind of change in their long-term planning, given the current macro we're in?

好的。埃里克，也許這只是一個級別問題。您在準備好的評論中提到了根據需求趨勢與客戶密切合作。當我想到生物製品終端市場時，我知道您對早期生物技術的接觸並不多，但考慮到資金和我們在管道中看到的一些優先事項，人們非常關注那裡的近期動態，我認為這可能會在某個時候影響未來的商業化。但我只是對你所擁有的席位和你的觀點感到好奇，你是否有更長遠的觀點以及與付款人的長期對話。鑑於我們目前所處的宏觀環境，他們的長期規劃是否有任何變化？

Yes. No, I don't see a long-term change to plans. You're absolutely spot on when you say that our exposure from a revenue and profit perspective in regards to biotech funding was pre-clinical or clinical is extremely low, although we're active. As you know, the thesis of our growth is participating during the pipeline and then work through the whole commercialization. So we don't see any change long term in the -- especially in the biologics. Very encouraged when I look at the first half of this year, a number approved new biologics and how we're positioned. As you know very well that it takes a while for those to ramp and to get more into higher patient population.

是的。不，我認為長期計劃不會發生變化。當您說我們在生物技術融資方面的收入和利潤角度來看，儘管我們很活躍，但在臨床前或臨床方面的敞口極低，您絕對是對的。如您所知，我們增長的主題是參與管道，然後進行整個商業化。因此，從長遠來看，尤其是生物製劑方面，我們看不到任何變化。當我看到今年上半年批准的一些新生物製劑以及我們的定位時，我感到非常鼓舞。正如您非常清楚的那樣，這些藥物需要一段時間才能擴大並進入更多的患者群體。

But we're positioned well, and our exposure in the biotech funding is very low right now. But -- and this whole discussion does not change our outlook for the Biologics long term.

但我們的定位很好，目前我們在生物技術融資方面的敞口非常低。但是——整個討論並沒有改變我們對生物製劑的長期前景。

Our next question comes from the line of Paul Knight of KeyBanc.

我們的下一個問題來自 KeyBanc 的 Paul Knight。

Yes. Eric. The impact, if any, is there from the Rocky Mount situation with Pfizer, does that kind of cause us to think about pacing on 3Q or what any impact in your view in the industry from that damage?

是的。埃里克.輝瑞的落基山事件是否會產生影響（如果有的話），這是否會導致我們考慮第三季度的節奏，或者您認為這種損害對行業有何影響？

Yes, Paul, thanks for asking the question. First of all, we're always concerned about any of our customers' sites and their employees, and I know we have a site 60 miles from there at Kinston, North Carolina. So we've obviously reached out and offered any assistance, not just from a product perspective but for a community perspective. And so a very long-standing relationship and that's first and foremost in our mind when we were talking to them on the day or day after the event.

是的，保羅，謝謝你提出這個問題。首先，我們始終關心客戶的站點及其員工，我知道我們在距客戶 60 英里的北卡羅來納州金斯頓設有一個站點。因此，我們顯然已經伸出援手並提供了任何幫助，不僅是從產品角度，而且是從社區角度。因此，這是一種非常長期的關係，當我們在活動當天或活動結束後與他們交談時，我們首先想到的是這一點。

In regards to us as product and revenue, we would not say there's any change in our trajectory for Q3, Q4. And we're really specifically -- the organization West is ready to respond appropriately, immediately to support them in any way. So -- and that we'll leverage our global operations if necessary. So the 2 answers to your question, we're ready to support when and needed and -- but no change to our outlook for the next 2 quarters.

就我們的產品和收入而言，我們不會說第三季度、第四季度的軌蹟有任何變化。我們非常明確 - 西方組織已準備好立即做出適當反應，以任何方式支持他們。因此，如有必要，我們將利用我們的全球業務。因此，您問題的兩個答案是，我們已準備好在需要時提供支持，但我們對未來兩個季度的展望不會改變。

And I know Michigan was opening up in the first half of the year. What was that facility? And then the other capacity question, is Waterford under expansion yet?

我知道密歇根州在今年上半年開放了。那個設施是什麼？然後另一個容量問題是沃特福德正在擴建嗎？

Yes. I'll touch on the first one and I'll let Bernard touch the second one at Waterford. So in Michigan, we -- it's a Contract Manufacturing site. It's one of our 7 Contract Manufacturing sites throughout Europe and the United States. And it is -- primarily focus of the expansion has been around auto-injectors and that is up and running as we speak. And we're doing the ramp-up with our customer at this time. So I'm really pleased on the progress and the output of the product, the high-quality product that's coming out of there. And that was kind of a transfer of knowledge from another site we have over in Europe. And so that whole global network approach in Contract Manufacturing is actually another benefit for our customer. So that's where we're with Michigan. Do you want to talk about Waterford?

是的。我將討論第一個，然後讓伯納德在沃特福德討論第二個。因此，在密歇根州，我們是一個合同製造工廠。它是我們遍布歐洲和美國的 7 個合同製造基地之一。擴展的主要重點是自動注射器，就在我們說話的時候，它已經啟動並運行。目前我們正在與客戶一起進行升級。因此，我對產品的進展和產出以及由此產生的高質量產品感到非常高興。這是我們在歐洲另一個站點的知識轉移。因此，合同製造中的整個全球網絡方法實際上是我們客戶的另一個好處。這就是我們與密歇根州的情況。你想談談沃特福德嗎？

Yes. In Waterford, we're looking to ask expansion to that facility, but it's not going to be here in '23, probably start sometime in later in '24. Right now, we're working through Jersey Shore, Kinston and Singapore, as Eric mentioned, and then we have also expansion going on in our Eschweiler site. So it's coming.

是的。在沃特福德，我們希望要求擴建該設施，但它不會在 23 年建成，可能會在 24 年晚些時候開始。正如埃里克提到的，目前我們正在澤西海岸、金斯頓和新加坡開展業務，然後我們還在埃施韋勒站點進行擴張。所以它來了。

And then, I guess, vaccine is waning or is vaccine moving to dose vials and/or is it moving to syringe yet, Bernard?

然後，我想，疫苗正在減弱，或者疫苗正在轉向劑量瓶和/或它正在轉向注射器，伯納德？

We haven't seen any major shift in that at this point.

目前我們還沒有看到任何重大轉變。

Our next question comes from the line of Derik De Bruin of Bank of America.

我們的下一個問題來自美國銀行的 Derik De Bruin。

So I've got several, so I'm going to pop off on. You're getting really good pricing. It looked like 5% to 6% on the quarter. That's relative to your 1% to 2% historically. How sustainable is that going forward? Or expected from that?

所以我有幾個，所以我要繼續。您得到的定價非常優惠。本季度的增長率約為 5% 至 6%。這是相對於歷史上 1% 到 2% 而言的。未來的可持續性如何？或者由此預期？

Yes, Derik, it's a great question. So thanks for joining the call today. You're right. I mean, historically, we were in the 1% to 2% corridor all the way up to, let's say, 2021. And when you think about 2022, we were roughly between 3% and 4% net price contribution. And this year, we're delivering on the high end what we stated earlier this year to 5% to 6%. We do -- we intentionally built capabilities in the organization a couple of years ago that we were giving visibility of that beliefs we can be somewhere in between where we're today and where we were back in 2021.

是的，德里克，這是一個很好的問題。感謝您今天加入電話會議。你說得對。我的意思是，從歷史上看，我們一直處於 1% 到 2% 的區間，直到 2021 年。當你想到 2022 年時，我們的淨價格貢獻大約在 3% 到 4% 之間。今年，我們將實現今年早些時候所說的高端 5% 至 6%。我們確實這麼做了——幾年前，我們有意在組織中建立了能力，讓人們相信我們可以處於今天的水平和 2021 年的水平之間。

And I won't give specific guidance right now, but our belief is that we have the ability to have more of a consistent, predictable price element, and we're focused on the mix also, which is a big driver of growth here at West. So while price is important, we'll continue to deploy the strategic pricing aspect. We're also very focused on mix and making sure we're bringing customers in at the higher end, the HVP versus the lower end. So those are the 2 levers that we're focused on, Derik.

我現在不會給出具體的指導，但我們相信我們有能力擁有更多一致的、可預測的價格因素，而且我們也關注組合，這是增長的一大推動力西方。因此，雖然價格很重要，但我們將繼續部署戰略定價方面。我們還非常注重混合，並確保我們吸引高端客戶，即 HVP 而非低端客戶。這就是我們關注的兩個槓桿，Derik。

Got it. That's really helpful. The -- your competitor, Datwyler, called out some stocking issues, inventory issues going on with it. I mean I know you haven't released -- you've seen a little bit of this, but I'm just sort of wondering has that had any impact on the business? Are you seeing any issues with that, that are popping up the unexpected?

知道了。這真的很有幫助。你的競爭對手 Datwyler 指出了一些庫存問題，以及隨之而來的庫存問題。我的意思是，我知道你還沒有發布——你已經看到了一些這樣的內容，但我只是想知道這對業務有什麼影響嗎？您是否發現任何出現意外的問題？

Yes, Derik, it's all that's taken into consideration as we kind of set the guidance for the balance of the year. Fortunately, we have a good lens with our customers. And there is some -- when you think about the COVID vaccine, obviously, there's a stocking -- destocking has been going on for the last couple of quarters. And then when we look at the base business, there's some inventory management here and there, but it's very low in amounts when compared to our order book, particularly last year. We have a good handle on it. But -- and we're keeping an eye on and having conversations with customers, but it's a very low impact at West right now.

是的，德里克，這就是我們為今年剩餘時間制定指導方針時考慮的所有因素。幸運的是，我們與客戶有良好的鏡頭。還有一些——當你想到新冠疫苗時，顯然，有庫存——過去幾個季度一直在減少庫存。然後，當我們查看基礎業務時，到處都有一些庫存管理，但與我們的訂單相比，特別是去年，其數量非常低。我們對此有很好的處理。但是——我們正在密切關注客戶並與客戶進行對話，但目前這對 West 的影響非常小。

Got it. So we like a lot of other people have done a bunch of work on the GLP-1s. And I think one of the questions we're constantly getting from investors is like how do you sort of think about the impact of the injectables business with the oral GLP-1s sort of come out? I mean what are your customers -- how are your customers thinking about the impact of those and sort of you -- sort of like -- I mean you're obviously adding a lot of HVP in capacity for GLP-1s and other products, but how your customers are thinking about the impact of orals on that market?

知道了。因此，我們像許多其他人一樣在 GLP-1 上做了很多工作。我認為我們經常從投資者那裡得到的問題之一是，您如何看待口服 GLP-1 上市後注射劑業務的影響？我的意思是你的客戶是什麼——你的客戶如何看待這些影響以及你——有點像——我的意思是你顯然為 GLP-1 和其他產品增加了大量的 HVP 容量，但是您的客戶如何看待口語對該市場的影響？

Well, I'm a little hesitant to go further on that conversation, Derik. I would ask you to -- or anyone to speak to our customers directly. They have a good line of sight of the injectable market and capabilities versus the orals. I do know for a fact that from our position, we're working with the customers to make sure that we do have the focus on capacity, the timing of the capacity and as we ramp, it's actually touching both sides of our business, not just the elastomers, HVP elastomers proprietary side, but there is also a contract manufacturing, and we're taking a very balanced approach to this. So -- but again, we're really focused on that side, and I would defer you or anyone to the customers on the oral conversation.

好吧，我有點猶豫是否要進一步討論這個話題，德里克。我會要求您或任何人直接與我們的客戶交談。他們對注射劑市場具有良好的洞察力，並且相對於口服劑的能力。我確實知道一個事實，從我們的立場來看，我們正在與客戶合作，以確保我們確實關注產能、產能的時間安排，並且隨著我們的發展，它實際上觸及了我們業務的雙方，而不是只是彈性體、HVP 彈性體專有方面，但也有合同製造，我們對此採取了非常平衡的方法。所以，但再次強調，我們確實專注於這一方面，我會在口頭對話中將您或任何人的意見交給客戶。

Our next question comes from the line of Matthew Larew of William Blair.

我們的下一個問題來自威廉·布萊爾的馬修·拉魯（Matthew Larew）。

I wanted to ask about the expansion in Singapore. And maybe just to use that as a maybe opportunity, Eric, could you help us frame where Asia PAC in general is from more of an HVP perspective? Are you seeing an acceleration in demand for HVP and NovaPure, particular in Asia PAC, that's kind of driving the recent investment. Just kind of curious, given that you were just over there, what you're hearing?

我想問一下新加坡的擴張情況。也許只是將此作為一個可能的機會，Eric，您能否幫助我們從 HVP 的角度來幫助我們了解亞太地區的總體狀況？您是否看到 HVP 和 NovaPure 的需求加速增長，特別是在亞太地區，這在某種程度上推動了近期的投資。只是有點好奇，考慮到你就在那裡，你聽到了什麼？

Yes, great question. Thanks, Matt. I think -- I'm excited about what I or actually Bernard and I were able to see the progress in Singapore with our site. As you know, it's one of our 5 high-value product manufacturing sites on the globe. And so -- and it supports some very exciting growth areas from a geographic perspective. I'll call out South Korea or Korea as an example. I'd also call out some other parts of Southeast Asia. And so -- and in fact, some of the products are going into Japan. So I'm really excited about how we're able to leverage this site to really drive growth through Asia Pacific.

是的，很好的問題。謝謝，馬特。我想——我對我或實際上伯納德和我能夠通過我們的網站看到新加坡的進展感到興奮。如您所知，它是我們在全球的 5 個高價值產品製造基地之一。因此，從地理角度來看，它支持一些非常令人興奮的增長領域。我會以韓國或韓國為例。我還會提到東南亞的其他一些地區。事實上，一些產品正在進入日本。因此，我對我們如何利用這個網站真正推動亞太地區的增長感到非常興奮。

What we're doing there is we're making sure that our customers, particularly the global customers are getting the same quality product service out of any of the 5 HVP sites. And we expect Asia Pacific to continue to be a high-growth area for us due to the amount of investments of our customers. And also, they're not just servicing the local market. You're finding a lot of our customers in that region are supporting the global market and/or working on behalf of some of the larger global drug companies.

我們在那裡所做的就是確保我們的客戶，特別是全球客戶能夠從 5 個 HVP 站點中的任何一個獲得相同質量的產品服務。由於我們客戶的大量投資，我們預計亞太地區將繼續成為我們的高增長地區。而且，他們不僅僅為當地市場提供服務。您會發現我們在該地區的許多客戶正在支持全球市場和/或代表一些較大的全球製藥公司工作。

And I'll end with this, while we were in Singapore, we had to meet with several of our customers came together in Singapore throughout the region. And it was very informative in how we think about the demand of HVP in the future because customers are expecting high-level quality and benefits that they can truly represent the products on a global scale. And that's where we come in to be able to support them. So hopefully, that gives you some context of what we're trying to accomplish in Singapore.

最後，當我們在新加坡時，我們必須會見整個地區聚集在新加坡的幾位客戶。這對於我們如何思考 HVP 未來的需求非常有幫助，因為客戶期望高水平的質量和利益，以便他們能夠真正在全球範圍內代表產品。這就是我們能夠為他們提供支持的地方。希望這能讓您了解我們在新加坡想要實現的目標。

Okay. And then I just have 2 cleanups from earlier questions. One, if I'm interpreting your comments correct, Eric. Should we think about full utilization of the new Kinston capacity not really occurring until 1Q '24, just given that it takes a couple of quarters to ramp up the first plant. And then the second, really destocking is still de minimis. But quarter-over-quarter, is it fair to say that it's been become a bit more headwind or a bit more unknown. And then I'll jump off.

好的。然後我對之前的問題進行了兩次清理。第一，如果我對你的評論的理解正確的話，埃里克。我們是否應該考慮充分利用新的 Kinston 產能，直到 24 年第一季度才真正實現，因為第一座工廠需要幾個季度的時間才能啟動。其次，真正的去庫存仍然是微乎其微的。但與上一季度相比，可以公平地說，它變得更加逆風或更加未知。然後我就跳下去。

Yes. No, the destocking comment, really, it's all -- majority of it is around the COVID-19 destocking. And so we've been pretty clear on our quarterly cadence last year and what we're seeing this year. So that's probably the majority of it. From the base perspective, we're not seeing a material difference from quarter-to-quarter. On the ramp-up of Kinston, it is a ramp-up, and it's going to take several quarters to get to a very high utilization rate. So that will be sometime in 2024. I just want to be clear, we did add additional capacity to handle flexibility and future demand that we anticipate, particularly with some of the new approvals that are just coming through. So yes, there will be some flex to that, but we expect it to be higher utilized throughout 2024.

是的。不，關於去庫存的評論，真的，這一切——大部分都是圍繞著 COVID-19 去庫存的。因此，我們非常清楚去年的季度節奏以及今年的情況。所以這可能是其中的大部分。從基本面來看，我們沒有看到季度與季度之間存在重大差異。金斯頓的產能提升是一個提升，需要幾個季度才能達到非常高的利用率。這將是在 2024 年的某個時候。我只是想澄清一下，我們確實增加了額外的能力來處理我們預期的靈活性和未來需求，特別是剛剛通過的一些新批准。所以，是的，這會有一些靈活性，但我們預計 2024 年它的利用率會更高。

Our next question comes from the line of David Windley of Jefferies.

我們的下一個問題來自 Jefferies 的 David Windley。

I wanted to kind of extend a couple of earlier questions. First, on the growth CapEx, the 70% of CapEx that now represents growth, is there an algorithm we can think about as to how that -- how a CapEx dollar translates either to revenue or say, gross profit? Do you guys think about it in that way at all?

我想擴展一下之前的幾個問題。首先，關於增長資本支出，即現在代表增長的資本支出的 70%，我們是否可以考慮一種算法——資本支出美元如何轉化為收入或毛利潤？你們有這樣的想法嗎？

Yes. That's not something that we share. We don't share that information. I think, David, the way we framed it is that the 70% is focused on growth. The growth is primarily in high-value products and it's to drive our long-term construct either to meet it or to create capacity to go above that. And then it's focused on higher-margin products. So the return on investment is faster. So it's investing in it, particularly around the Biologics segment. I think that's the easiest way to frame it rather than us giving specific dollars to revenue and profit. And that's not something we're willing to share.

是的。這不是我們分享的東西。我們不分享這些信息。我認為，大衛，我們的框架方式是 70% 專注於增長。增長主要集中在高價值產品，它是為了推動我們的長期建設，要么滿足這一目標，要么創造超越這一目標的能力。然後它專注於利潤率更高的產品。所以投資回報更快。因此，它正在對此進行投資，特別是在生物製劑領域。我認為這是最簡單的框架方式，而不是我們為收入和利潤提供具體的資金。這不是我們願意分享的事情。

Okay. I'll try it a slightly different way. So I've had some investors recall to me or recount to me that the Kinston NovaPure plunger expansion doubles that capacity. Would you be willing to comment on that or confirm that?

好的。我會嘗試一種稍微不同的方式。因此，一些投資者向我回憶或向我講述，Kinston NovaPure 柱塞擴張使容量翻倍。您願意對此發表評論或證實嗎？

The expansion that we have put into Kinston specifically is significantly more than what we had there before. But on a global basis, it's adding more than 2x of capacity in the NovaPure portfolio, but that's well as far as we can go with giving the details there. I'll be very clear, though, David. And it's a very -- it's a valid question. It is supporting multiple molecules, multiple customers, and it's a network effect. So I got to be careful. It's not a particular product or a category. It's across multiple. It's been leveraged in multiple ways.

我們專門對金斯頓進行的擴建比我們之前在那裡的擴建要多得多。但在全球範圍內，NovaPure 產品組合的產能增加了 2 倍以上，但這只是我們所能提供的詳細信息。不過，我會說得很清楚，大衛。這是一個非常——這是一個有效的問題。它支持多個分子、多個客戶，並且具有網絡效應。所以我必須小心。它不是特定的產品或類別。它跨越多個。它已通過多種方式得到利用。

Right. Okay. Got it. In the -- in thinking kind of a similar question to Paul's, I think, about the Pfizer North Carolina Rocky Mountain facility, but thinking just more broadly about sterile fill-finish capacity, throughput, et cetera. So generally speaking, you hear the sterile fill-finish capacity is still quite tight. In the case of some of the GLP-1s, some of those manufacturers have had some FDA-related issues that have caused shutdown of facilities or shutdown of a facility, that's certainly more in the past, and I would think would have already impacted you if it was going to. But I guess I'm just wondering about how attentive we need to be to the capacity activities in the kind of the next downstream function from you, the folks that are using your elastomers to complete their work?

正確的。好的。知道了。在思考與保羅類似的問題時，我認為是關于輝瑞北卡羅來納州落基山工廠的問題，但更廣泛地思考無菌灌裝-完成能力、吞吐量等。所以總的來說，你聽說無菌灌裝-成品產能仍然相當緊張。就某些 GLP-1 而言，其中一些製造商遇到了一些與 FDA 相關的問題，導致設施關閉或設施關閉，這在過去肯定更多，我認為已經對您產生了影響如果它會的話。但我想我只是想知道我們需要如何關注你們的下一個下游功能的產能活動，那些使用你們的彈性體來完成他們工作的人？

Yes, that's part of normal supply chain management. And I think that our approach is that we're getting indications from our customers what their demand is across a number of different therapeutics. Our job is to make sure that we have the capacity in place to be able to deliver when they need it. Sometimes that timing conflicts, but we haven't seen no major impact on our business to this point. And our focus, as we said, is layering in capacity. And back to Eric's point, it's not just in Kinston, we're leveraging capacity across our global network to be able to provide whatever response our customers need.

是的，這是正常供應鏈管理的一部分。我認為我們的方法是從客戶那裡了解他們對多種不同療法的需求。我們的工作是確保我們有能力在他們需要時提供服務。有時時間安排會發生衝突，但到目前為止，我們還沒有看到對我們的業務產生重大影響。正如我們所說，我們的重點是容量分層。回到埃里克的觀點，不僅僅是在金斯頓，我們正在利用我們全球網絡的能力來提供客戶所需的任何響應。

And we've learned a lot from the last couple of years about having that capacity at a number of different facilities that we're able to flex faster, and we can meet any spike in demand. And that's what we're doing right now, and that's where we have to remain focused. And what happens in the other parts of the supply chain, we're aware of it, which some of that is outside of our control.

我們從過去幾年中學到了很多關於在許多不同設施中擁有這種能力的知識，我們能夠更快地靈活調整，並且我們可以滿足任何需求的激增。這就是我們現在正在做的事情，也是我們必須保持專注的地方。我們知道供應鏈其他部分發生的情況，其中一些是我們無法控制的。

Sure. Last question for me would just be to get your -- take your temperature on the progress for your Valor Glass partnership, Ready Pack seating of the market and what you're seeing there?

當然。我想問的最後一個問題是，了解一下您對 Valor Glass 合作夥伴關係的進展情況、Ready Pack 市場席位以及您在那裡看到的情況？

David, good question. I'm actually quite excited. I know we just had another review with our partner and the progress we're making. As you know, this is a multistep journey. We have multiple launches. Right now, we're more focused on the vial launches. I think just a few weeks ago, we had (inaudible) vial technology launched through our channel. The customers are very excited about the opportunity to have a fully characterized complete system that the partnership with Corning gives us that flexibility and capability of representing a complete system with the 1 DMF to our customers.

大衛，好問題。我其實很興奮。我知道我們剛剛與合作夥伴再次審查了我們正在取得的進展。如您所知，這是一個多步驟的旅程。我們有多次發射。現在，我們更關注小瓶的上市。我想就在幾週前，我們通過我們的渠道推出了（聽不清）小瓶技術。客戶對有機會擁有一個完全表徵的完整系統感到非常興奮，與康寧的合作為我們提供了向客戶展示具有 1 DMF 的完整系統的靈活性和能力。

And so we're still on the path to be able to continue to launch various configurations, ultimately, to get to the point of a fully characterized prefilled syringe using the best technologies of both organizations but that still is going to take some time to get there. I won't give you exact dates, but over the next couple of years, you see various launches and penetration with our customers.

因此，我們仍然走在能夠繼續推出各種配置的道路上，最終使用兩個組織的最佳技術達到完全表徵的預充式註射器的目標，但這仍然需要一些時間才能實現那裡。我不會給你確切的日期，但在接下來的幾年裡，你會看到各種產品的推出和客戶的滲透。

Our next question comes from the line of John Sourbeer of UBS.

我們的下一個問題來自瑞銀集團的約翰·索爾比爾。

Just maybe a following one here to start off. How do we think about the revenue cadence here in the second half with the different dynamics at play. You have the new capacity coming online, COVID roll-off and then some seasonality. Just any additional color you could provide us there?

也許只是從以下一個開始。在不同動態的影響下，我們如何看待下半年的收入節奏？新產能上線、新冠肺炎疫情爆發以及一些季節性因素。您可以為我們提供任何其他顏色嗎？

Yes. I would say that Q2 or Q3, like similar to Q2, plus/minus, and then we would expect to see pick up in Q4 based on the capacity that we're implementing on in Kinston and at a couple of other facilities.

是的。我會說第二季度或第三季度，就像第二季度一樣，加/減，然後我們預計會根據我們在金斯頓和其他幾個設施實施的容量，在第四季度看到回升。

Got it. And then just on biosimilars, I don't think you've touched on it. There's a few that have been coming online. I guess how is this playing into demand you have here on revenue and any changes around the competitive environment you've seen on biosimilars, if branded switching to a competitor?

知道了。然後就生物仿製藥而言，我認為您還沒有觸及它。有一些已經上線。我想如果品牌轉向競爭對手，這將如何滿足您對收入的需求以及您在生物仿製藥上看到的競爭環境的任何變化？

Yes. No issue for us. Actually, when we look at biosimilars and working with those customers has a very similar primary packaging configuration of others. And so it is the higher end of our high-value products, and we continue to participate very high. When we talk about a participation rate for Biologics, we're also inclusive of biosimilars. So we look at that as kind of holistically. And feeling really good about where we're and where we're going.

是的。對我們來說沒問題。實際上，當我們研究生物仿製藥並與這些客戶合作時，他們的初級包裝配置與其他客戶非常相似。因此，這是我們高價值產品的高端，我們繼續高度參與。當我們談論生物製劑的參與率時，我們也包括生物仿製藥。所以我們從整體上看待這一點。我們對自己所處的位置和要去的地方感覺非常好。

I appreciate the color there. And then just last one for me. I know you commented on APAC, but would you be willing to say how much of your revenue is in China and others have called out some issues there in headwinds. Have you seen anything in the China market to call out?

我很欣賞那裡的顏色。然後是我的最後一個。我知道您對亞太地區發表了評論，但您是否願意透露您的收入有多少來自中國，其他人也指出了那裡的一些不利問題。您在中國市場有看到什麼值得稱讚的地方嗎？

Yes. It's very little. It's a very low single-digit percentage of the overall West enterprise sales. If you -- if we look at that business, we're pleased with where it's at. But if there's any headwinds, it's all around COVID-19. That's strictly where the issues are, which are characterized basically for the whole globe for us right now. But very low exposure right now in China.

是的。很少。這在西方企業整體銷售額中所佔的比例非常低，只有個位數。如果你——如果我們看看這項業務，我們會對它的現狀感到滿意。但如果說有什麼阻力的話，那就是新冠肺炎 (COVID-19)。這正是問題所在，目前對我們來說基本上是全球範圍內的問題。但目前在中國的曝光度很低。

Our next question comes from the line of Justin Bowers of Deutsche Bank.

我們的下一個問題來自德意志銀行的賈斯汀·鮑爾斯。

Just a quick one on the margins with revenue being flat sequentially, plus or minus. Is it fair to think of operating margins being around the same level and then as we think about 4Q and the step up there in volumes, should there be some incrementals there with respect to the margins and then part 2, pardon if I missed this, but what was the C19 contribution in the quarter?

只是利潤率上的一個快速變化，收入環比持平，無論是增減。考慮營業利潤率大約在同一水平，然後當我們考慮第四季度和銷量的增加時，是否應該在利潤率和第二部分方面有一些增量，如果我錯過了這一點，請原諒，但本季度 C19 的貢獻是多少？

So on -- to answer the margin question, we would expect it to step down a little bit, and that's typically what we see coming off Q2 from a manufacturing point of view, it's usually our strongest quarter in the year. So given the various shutdowns that we have in Q3, Q4, there's typically a little bit of a step down, and that will be normal for us. So it's just to bake that in. And that's embedded in the guidance. COVID-19, we did about $20 million in Q2 from a revenue perspective.

等等 - 為了回答利潤率問題，我們預計它會略有下降，這通常是我們從製造業角度看到的第二季度的情況，這通常是我們一年中最強勁的季度。因此，考慮到我們在第三季度、第四季度發生的各種停工，通常會有一點下降，這對我們來說是正常的。所以這只是將其納入其中。並將其嵌入到指南中。 COVID-19，從收入角度來看，我們在第二季度的收入約為 2000 萬美元。

I'm showing no further questions at this time. I'd like to turn the call back over to Quintin Lai for any closing remarks.

我目前沒有提出任何進一步的問題。我想將電話轉回給 Quintin Lai，讓其作結束語。

Thanks, Valerie, and thank you for joining us on today's conference call. An online archive of the broadcast will be available on our website at westpharma.com in the Investors section. Additionally, you may access the replay for 30 days following this presentation by using the dial-in numbers and conference ID provided at the end of today's earnings release. That concludes this call. Have a nice day.

謝謝瓦萊麗，也感謝您參加我們今天的電話會議。廣播的在線存檔將在我們的網站 westpharma.com 的投資者部分提供。此外，您可以使用今天收益發布結束時提供的撥入號碼和會議 ID 來觀看本次演示後 30 天內的重播。本次通話到此結束。祝你今天過得愉快。

Thank you. Ladies and gentlemen, this does conclude the conference. You may now disconnect. Have a great day.

謝謝。女士們、先生們，本次會議到此結束。您現在可以斷開連接。祝你有美好的一天。