西式醫藥服務 (WST) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q3 2024 West Pharmaceutical Services earnings conference call. At this time, all participants are in a listen-only mode. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 West Pharmaceutical Services 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, John Sweeney, VP of Investor Relations with West Pharmaceuticals. Please go ahead.

現在，我想將會議交給今天的演講者、West Pharmaceuticals 投資者關係副總裁 John Sweeney。請繼續。

Good morning, and welcome to West's third quarter 2024 earnings conference call. We issued our financial results earlier this morning and the release has been posted in the Investors section on the company's website located at westpharma.com.

早上好，歡迎參加 West 2024 年第三季財報電話會議。我們今天早上早些時候發布了財務業績，該新聞稿已發佈在公司網站 westpharma.com 的投資者部分。

On the call today, we will review our financial results, provide an update in our business, and present an updated financial outlook for the full year 2024. There's a slide presentation that accompanies today's call and a copy of the presentation is available on the Investors section of the website.

在今天的電話會議上，我們將回顧我們的財務業績，提供我們業務的最新情況，並提出 2024 年全年的最新財務展望。今天的電話會議附帶了一個幻燈片演示，並且可以在網站的投資者部分獲得演示文稿的副本。

On slide 4 is a Safe Harbor Statement. Statements made by management on the call and in the accompanying presentation contain forward-looking statements within the meaning of US Federal Securities Law. These statements are based on our beliefs and assumptions, current expectations, estimates, and forecasts.

第 4 投影片上有一份安全港聲明。管理層在電話會議和隨附簡報中發表的聲明包含美國聯邦證券法含義內的前瞻性聲明。這些陳述是基於我們的信念和假設、目前的預期、估計和預測。

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 statements 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.

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陳述中明示或暗示的結果有重大差異。請參閱今天的新聞稿以及本公司就其面臨的風險所做的任何其他揭露，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. I'll now turn the call over to our CEO, Eric Green. Eric?

在今天的電話會議中，管理階層將參考非公認會計準則財務指標，包括有機銷售成長、調整後營業利潤、調整後營業利潤率和調整後稀釋每股收益。今天早上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。現在我將把電話轉給我們的執行長 Eric Green。艾瑞克？

Thank you, John, and good morning, everyone. Thanks for joining us today. Prior to discussing our quarterly performance, I would like to take a moment to express our heartfelt thoughts and support to all our team members and communities affected by the recent hurricanes and weather-related issues. For precautionary measures and to ensure the safety of our team members, we closed our Florida manufacturing site ahead of Hurricane Milton.

謝謝約翰，大家早安。感謝您今天加入我們。在討論我們的季度業績之前，我想花一點時間向受最近颶風和天氣相關問題影響的所有團隊成員和社區表示衷心的感謝和支持。為了採取預防措施並確保我們團隊成員的安全，我們在颶風米爾頓之前關閉了佛羅裡達州的生產基地。

I want to extend my thanks to those team members who were affected by this storm as they truly represent our one West culture. While there was no damage to our St. Pete plant, many of our team members have faced personal challenges. I'm truly proud of their efforts that enabled West to seamlessly serve our customers without disruption.

我要向那些受到這場風暴影響的團隊成員表示感謝，因為他們真正代表了我們統一的西方文化。雖然我們的聖彼得工廠沒有受到損壞，但我們的許多團隊成員都面臨著個人挑戰。我對他們的努力感到非常自豪，他們使 West 能夠不間斷地無縫地為我們的客戶提供服務。

Now, let's turn to slide 5, in the Q3 performance. We had a solid third quarter with revenues and adjusted EPS coming in at the higher end of our expectations. Our West team across the globe continues to execute at a high level, motivated by our purpose of improving patient lives. The strong quarter performance was a result of our solid execution and close collaboration with our customers.

現在，讓我們轉向幻燈片 5，第三季的表現。我們的第三季表現穩健，營收和調整後每股盈餘都高於我們的預期。我們遍布全球的西方團隊在改善患者生活的目標的激勵下繼續保持高水準的執行力。強勁的季度業績得益於我們紮實的執行力以及與客戶的密切合作。

This allowed us to meet our customers' demand requirements in some cases ahead of schedule. As a result of Q3, we are increasing our adjusted EPS guidance for the full year. This reinforces my confidence in West's execution capabilities as we continue to deliver our proven market led strategy and attractive long term growth potential.

這使我們能夠在某些情況下提前滿足客戶的需求。第三季的結果是，我們提高了全年調整後每股盈餘指引。這增強了我對 West 執行能力的信心，因為我們將繼續提供經過驗證的市場主導策略和有吸引力的長期成長潛力。

Turning to slide 6. West continues to have a strong position in biologics. The fastest growing segment within injectables, not only for current drugs in the market, but also for new drug launches where our participation rate remains very high.

轉到投影片 6。韋斯特在生物製劑領域繼續保持強勢地位。注射劑中成長最快的部分，不僅適用於市面上現有的藥物，也適用於我們的參與率仍然非常高的新藥上市。

Our HVP components are addressed in the most critical therapeutic areas including immunology, oncology, rare diseases, and obesity. We expect to see some improvement in biologics in Q4 driven by the continued ramp in wearable self-injection devices.

我們的 HVP 成分適用於最關鍵的治療領域，包括免疫學、腫瘤學、罕見疾病和肥胖症。我們預計，在穿戴式自註射設備持續成長的推動下，第四季生物製劑將出現一些改善。

A key aspect to our growth strategy and market leadership is West team of scientific thought leaders and technical experts. Through valuable insights, they continue to address the evolving needs of the complex development process and regulatory requirements to meet the needs of our customers.

我們的成長策略和市場領導地位的關鍵因素是西方科學思想領袖和技術專家團隊。透過寶貴的見解，他們不斷滿足複雜的開發流程和監管要求不斷變化的需求，以滿足客戶的需求。

As the market leader in the containment and delivery of injectable medicines, we continue to have productive dialogues with our customers at key industry conferences. For example, at the recent CPHI Worldwide Conference, our West experts held a podium presentation about contamination control strategy in primary packaging as part of the EU GMP Annex 1.

作為注射藥物遏制和傳輸領域的市場領導者，我們繼續在重要的行業會議上與客戶進行富有成效的對話。例如，在最近舉行的 CPHI 全球會議上，我們的西方專家就初級包裝中的污染控制策略（作為歐盟 GMP 附件 1 的一部分）進行了講台演講。

We know that a drug manufacturer's contamination control strategy is only as strong as its weakest link. Making the quality and control of materials from third party suppliers, critical factors to their process. We remain well positioned with our HPP capabilities to support our customers' pipelines for the future.

我們知道，藥品製造商的污染控制策略的強度取決於其最薄弱的環節。使第三方供應商材料的品質和控製成為其流程的關鍵因素。我們的 HPP 能力仍然處於有利地位，可以為客戶的未來管道提供支援。

In addition, we're starting to see early traction with our long-term growth initiatives, particularly with GLP-1s and how we serve our long-standing customers. With our market leadership and proprietary products, and continued strength in contract manufacturing, we are making meaningful investments to drive increased capacity to address these new opportunities.

此外，我們開始看到我們的長期成長計劃的早期吸引力，特別是 GLP-1 以及我們如何服務我們的長期客戶。憑藉我們的市場領導地位和專有產品，以及合約製造方面的持續實力，我們正在進行有意義的投資，以提高產能，應對這些新機會。

We are also making significant progress in ramping up production of HVP delivery devices. The strong increase with On-Body self-injection devices during the quarter was driven by a combination of capital investment, improved utilization and the implementation of a new production line. We anticipate this ramp up to continue into the fourth quarter, as we execute on our expansion plans. We have initiatives in place to improve the margin including optimizing our manufacturing process, driving efficiency through automation and scaling to fill customer demand.

我們在提高 HVP 輸送設備的產量方面也取得了重大進展。本季體內自註射設備的強勁成長是由資本投資、利用率提高和新生產線實施共同推動的。隨著我們執行擴張計劃，我們預計這種成長將持續到第四季。我們採取了提高利潤率的舉措，包括優化製造流程、透過自動化提高效率以及擴大規模以滿足客戶需求。

Now let me shift to the stocking as this remains a factor with our customers. We are starting to see signs of stabilization within our business. In recent customer discussions, we have observed a positive shift with some customers showing interest in increasing their near-term order levels.

現在讓我談談庫存，因為這仍然是我們客戶關注的因素。我們開始看到業務穩定的跡象。在最近的客戶討論中，我們觀察到一些客戶對增加近期訂單水準表現出興趣的正面轉變。

This gives us confidence that we're getting closer to a turning point in the destocking trend. We now expect continued signs of normalization in our pharma business, improving trends in biologics driven by the ramp up in delivery devices, and continued destocking with some generic customers into 2025.

這讓我們有信心，我們正在接近去庫存趨勢的轉折點。我們現在預計我們的製藥業務將繼續出現正常化的跡象，在輸送設備增加的推動下改善生物製劑的趨勢，並在 2025 年繼續減少一些仿製藥客戶的庫存。

Now I'll turn the call over to Bernard. Bernard?

現在我將把電話轉給伯納德。伯納德？

Thank you, Eric, and good morning. Let's review the numbers in more detail. We'll first look at Q3 2024 revenues and profits where we saw a low single-digit decline in organic sales, as well as declines in operating profit and diluted EPS compared to the third quarter of 2023.

謝謝你，艾瑞克，早安。讓我們更詳細地回顧一下這些數字。我們將首先關注 2024 年第三季的收入和利潤，與 2023 年第三季相比，有機銷售額出現低個位數下降，營業利潤和稀釋後每股收益也出現下降。

I will take you through the drivers impacting sales and margin in the quarter, as well as some balance sheet takeaway. And finally, we will provide an update to our 2024 guidance.

我將向您介紹影響本季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 2024 年指南的更新。

First up Q3. Our financial results are summarized on slide 7 and the reconciliation of non-US GAAP measures are described in slides 16 to 20. We recorded net sales of $746.9 million representing an organic sales decline of 0.5%. Looking at slide 8, proprietary products, organic net sales decreased 0.5% in the quarter.

首先是第三季。我們的財務表現在投影片 7 中進行了總結，非美國 GAAP 指標的調整在投影片 16 至 20 中進行了描述。我們的淨銷售額為 7.469 億美元，有機銷售額下降 0.5%。從投影片 8 來看，本季專有產品的有機淨銷售額下降了 0.5%。

High value products which made approximately 75% of proprietary product sales in the quarter declined by low single digits, primarily due to destocking of our FluroTec, NovaBrand, and Westar products offset by an increase in sales of our drug delivery devices. Looking at the performance of the market units. The Pharma market unit saw a mid-single digit increase driven by an increase in the sales of NovaBrand products and administrative systems.

高價值產品佔本季專有產品銷售額的約75%，下降了低個位數，這主要是由於我們的FluroTec、NovaBrand 和Westar 產品的庫存減少，但被我們的給藥設備銷售額的增長所抵消。看看市場單位的表現。在 NovaBrand 產品和管理系統銷售成長的推動下，製藥市場部門實現了中個位數成長。

The biologics market experienced a low-single digit decline, primarily driven by de-stocking of FluroTec NovaPure, and Westar products, offset by an increase in our drug delivery devices. And the generics market unit declined mid-single digits primarily due to lower volumes in NovaBrand products.

生物製品市場經歷了低個位數的下降，主要是由於 FluroTec NovaPure 和 Westar 產品的庫存減少所致，但被我們的藥物輸送設備的增加所抵消。仿製藥市佔率出現中個位數下降，主要是由於 NovaBrand 產品銷售下降。

Our contract manufacturing segment revenue on a constant currency basis was consistent with our performance for the third quarter of last year. Our adjusted operating profit margin of 21.5% with a 270-basis point decrease from the same period last year. Finally adjusted diluted EPS declined 14.4% for Q3. Excluding stock-based compensation tax benefit EPS decreased by 10%.

我們的合約製造部門以固定匯率計算的收入與去年第三季的業績一致。調整後營業利益率為 21.5%，較去年同期下降 270 個基點。最終，第三季調整後攤薄每股收益下降 14.4%。剔除股票補償稅優惠每股盈餘下降10%。

Now, let's review the drivers in both revenue and profit performance. On slide 9, we show the contributions to organic sales decline in the quarter. Sales price increases contributed $34.2 million, a 4.6 percentage points of growth in the quarter, as did a foreign currency tailwind of approximately $2.9 million. Included in sales price is a $19 million customer incentive associated with achieving volume levels. More than offsetting price, an FX was a negative volume, and mixed impact of $37.6 million, primarily due to lower sales volume caused by customer inventory management decisions in the period, and a mix shift from HPP components to drug delivery devices based on customer demand.

現在，讓我們回顧一下收入和利潤表現的驅動因素。在投影片 9 中，我們展示了本季有機銷售額下降的原因。銷售價格上漲貢獻了 3,420 萬美元，本季成長了 4.6 個百分點，外幣推動因素也貢獻了約 290 萬美元。銷售價格中包含與達到銷售水準相關的 1,900 萬美元客戶獎勵。FX 不僅抵消了價格的影響，還帶來了 3760 萬美元的負銷量和混合影響，這主要是由於該期間客戶庫存管理決策導致銷量下降，以及根據客戶需求從 HPP 組件轉向藥物輸送設備的組合轉變。

Looking at margin performance. Slide 10, shows a consolidated gross profit margin of 35.4% for Q3 2024, down from 38.6% in Q3 2023. Proprietary products' third quarter gross profit margin, 39.2% was 420 basis points lower than the margin achieved in the third quarter of 2023.

看看利潤表現。投影片 10 顯示 2024 年第三季的綜合毛利率為 35.4%，低於 2023 年第三季的 38.6%。自營產品第三季毛利率為39.2%，比2023年第三季實現的利潤率低420個基點。

The key drivers for the decline in proprietary products gross profit margin for lower production volumes in our high margin HVP components and a mix shift to lower margin drug delivery devices, which we expect to increase over time with yield improvements from automation.

專有產品毛利率下降的主要驅動因素是我們的高利潤HVP 組件產量下降以及向利潤率較低的藥物輸送設備的混合轉向，我們預計隨著自動化產量的提高，這種情況將隨著時間的推移而增加。

These margin reductions were partially offset by increased sales price, inclusive of the previously mentioned customer incentives. Contract manufacturing third quarter gross profit margin of 19.9% was 130 basis points greater than the margin achieved in the third quarter of 2023, primarily due to production efficiencies.

這些利潤率的下降被銷售價格的上漲部分抵消，包括前面提到的客戶激勵措施。合約製造第三季毛利率為 19.9%，比 2023 年第三季實現的利潤率高出 130 個基點，這主要是由於生產效率的提高。

Now let's look at our balance sheet and review how we've done in terms of generating cash for the business. On slide 11, we have listed some key cash flow metrics. Operating cash flow was $463.3 million for the nine months ended September 2024.

現在讓我們來看看我們的資產負債表，並回顧一下我們在為企業創造現金方面的表現。在投影片 11 上，我們列出了一些關鍵的現金流量指標。截至 2024 年 9 月的九個月，營運現金流為 4.633 億美元。

A decrease of $74.1 million compared to the same period last year, a 13.8% decrease primarily due to a decline in operating results. For the third quarter 2024 year-to-date capital spending was $272.1 million, $18.8 million higher than the same period last year. We continued to leverage our CapEx to increase both our high value products and contract manufacturing capacity. Working capital of approximately $1.034 billion September 30, 2024, decreased by $230.5 million from December 31, 2023, primarily due to a reduction in our cash balance.

與去年同期相比減少7,410萬美元，減少13.8%，主要是因為經營績效下降。2024 年第三季迄今的資本支出為 2.721 億美元，比去年同期增加 1,880 萬美元。我們繼續利用資本支出來增加我們的高價值產品和合約製造能力。2024年9月30日的營運資金約為10.34億美元，較2023年12月31日減少2.305億美元，主要是由於我們的現金餘額減少。

Our cash balance on September 30, 2024, of $490.9 million with $363 million lower than our December 2023 balance. The decrease in cash is primarily due to $506.5 million of share repurchases and our capital expenditures offset by cash from operations.

截至 2024 年 9 月 30 日，我們的現金餘額為 4.909 億美元，比 2023 年 12 月的餘額減少了 3.63 億美元。現金減少主要是由於 5.065 億美元的股票回購以及我們的資本支出被營運現金抵銷。

Turning to guidance, slide 12 provides a high-level summary. We are increasing our full year 2024 net sales guidance to a range of $2.875 billion to $2.905 billion, from a prior range of $2.87 billion to $2.9 billion, reflecting the impact of foreign exchange.

轉向指導，幻燈片 12 提供了高級摘要。我們將 2024 年全年淨銷售額指引從先前的 28.7 億美元至 29 億美元提高至 28.75 億美元至 29.05 億美元，反映了外匯的影響。

There is an estimated full year 2024 headwind of approximately $1 million based on current foreign exchange rates. We expect an organic sales decline of approximately 1.5% to 2%. We are raising our full year 2024 adjusted diluted EPS guidance to be in a range of $6.55 to $6.75 compared to a prior range of $6.35 to $6.65.

根據當前外匯匯率，預計 2024 年全年的阻力約為 100 萬美元。我們預計有機銷售額將下降約 1.5% 至 2%。我們將 2024 年全年調整後稀釋每股盈餘指引上調至 6.55 美元至 6.75 美元，之前的範圍為 6.35 美元至 6.65 美元。

Also, our CapEx guidance remains at $375 million which is unchanged from prior guidance. There are some key elements I want to bring your attention to as you review our guidance. Full year 2024 adjusted diluted EPS guidance range includes an FX headwind of $0.02 compared to the prior year, which is a decrease from the prior guidance of $0.03 headwind.

此外，我們的資本支出指導仍為 3.75 億美元，與先前的指導保持不變。當您查看我們的指南時，我想提請您注意一些關鍵要素。2024 年全年調整後攤薄每股收益指引範圍包括與前一年相比 0.02 美元的外匯阻力，較先前 0.03 美元阻力的指引有所下降。

The updated guidance also includes EPS of $0.26 associated with the first nine months of 2024 tax benefits from stock-based compensation. Our guidance excludes future tax benefits from stock-based compensation. I would now like to turn the call back over to Eric.

更新後的指引還包括與 2024 年前 9 個月基於股票的薪酬的稅收優惠相關的 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。我現在想把電話轉回給艾瑞克。

Thank you, Bernard. To summarize, in slide 13, we had a solid Q3 performance with a high level of execution focused on our purpose. We are the market leader in injectables with an even stronger position in biologics. We are investing in capital in higher growth areas with focus on execution, expanded margins, and cash flow. And I'm confident that once the market demand normalizes, we will achieve our long-term financial construct with our proven market led strategy and future growth driver’s. Operator, we're ready to take questions. Thank you.

謝謝你，伯納德。總而言之，在投影片 13 中，我們在第三季表現出色，並以高水準的執行力專注於我們的目標。我們是注射劑市場的領導者，在生物製劑領域的地位更為強大。我們正在高成長領域進行資本投資，重點關注執行、擴大利潤和現金流。我相信，一旦市場需求正常化，我們將憑藉經過驗證的市場主導策略和未來成長動力實現長期財務建設。接線員，我們準備好回答問題了。謝謝。

(Operator Instructions)

（操作員說明）

Jacob Johnson, Stephens.

雅各約翰遜、史蒂芬斯。

Hey, thanks. Good morning, everybody. Congrats on the quarter. I guess just first on the organic growth guidance, you guys, obviously had a really strong 3Q but you did kind of narrow organic growth towards the lower end of the range. I realize we're talking about 25 bps there. But is there anything that got worse versus your prior expectations that you could call out? And then just along the lines of guidance, the $19 million fee you guys called out, was that something that was contemplated in prior guidance or is that a proverbial good guide this quarter? Thanks.

嘿，謝謝。大家早安。恭喜本季。我想首先就有機成長指引而言，你們顯然有一個非常強勁的第三季度，但你們確實將有機成長縮小到了範圍的下限。我意識到我們談論的是 25 bps。但是，有沒有什麼事情比你之前的預期更糟糕，你可以指出這一點？然後，按照指導方針，你們提出的 1900 萬美元費用，是先前的指導中考慮到的，還是本季度眾所周知的良好指導？謝謝。

Jacob, I'll take that. On the second part of the question, yeah, the $19 million was contemplated. It was obviously beta based on volumes that we had to achieve you know, an agreement with our customer and we achieved that. So weren’t a surprise to us. On the guide itself, it's really just rounding the change for Q4. So no real material change. The difference from Q3 to Q4 is really timing on when we delivered on customers’ orders and some expectations. So again, no real change to our outlook on the year.

雅各布，我會接受的。關於問題的第二部分，是的，1900 萬美元是考慮過的。這顯然是基於我們必須達到的數量的測試版，你知道，與我們的客戶達成協議，我們實現了這一目標。所以我們並不感到驚訝。就指南本身而言，它實際上只是對第四季度的變化進行了四捨五入。所以沒有真正的實質改變。第三季和第四季的差異實際上在於我們交付客戶訂單和一些期望的時間。再說一次，我們對今年的展望沒有真正的改變。

Got it. Thanks for that, Bernard, and maybe sticking with you. Intra quarter, you mentioned the potential for your margin profile to return to 2023 levels once you return to LRP growth. Can you just talk about your visibility into getting back to that kind of margin profile and kind of how quickly post de stocking you could get back to those levels?

知道了。謝謝你，伯納德，也許我會繼續支持你。在季度內，您提到一旦恢復 LRP 成長，您的利潤率就有可能恢復到 2023 年的水準。您能否談談您恢復到這種利潤狀況的可見性以及去庫存後您能多快恢復到這些水平？

Yeah, so it's really down to when demand normalizes and also that the mix within our business normalizes when we get to that point, you know, we get back to our LRP, then the margins are just back to the 20, 23 levels. So, it's really a mixed impact, and then that level of demand normalization.

是的，所以這實際上取決於需求何時正常化，以及當我們達到這一點時我們業務的組合是否正常化，你知道，我們回到LRP，然後利潤率就會回到20、23 的水平。所以，這確實是一個複雜的影響，然後是需求正常化的程度。

Got it. I'll leave it there. Thanks for taking the questions.

知道了。我會把它留在那裡。感謝您提出問題。

Thanks, Jacob.

謝謝，雅各。

Lawrence Solow, CJS Securities.

勞倫斯·索洛，CJS 證券。

Great. Thanks. Good morning, everybody. I guess first question just on the quarter itself, obviously a pretty solid quarter, especially relative to expectations. Was the higher end driven more on the just slower customer de stocking or was it more on the demand side, any way to kind of parcel that out? And it does sound like there's a little bit of, I guess timing maybe was a little bit of a good guy in the quarter two.

偉大的。謝謝。大家早安。我想第一個問題只是關於本季本身，顯然是一個相當穩定的季度，尤其是相對於預期而言。高端市場的推動更多是因為客戶去庫存速度較慢，還是更多地受到需求方面的推動，有什麼辦法可以解決這個問題嗎？聽起來確實有一點，我想第二季的時機可能有點好。

Yeah, Larry, good morning. No, absolutely. What we observed in Q3 was really a couple of factors. One is around execution continued to deliver on the commitments that we made with our customers. And secondly, is that in a few cases, our customers are -- they have accelerated some of their programs and asked us to deliver a little ahead of schedule, but they were contemplated and planned for already within the second half of 2024. So it's really mostly around timing that has given us additional growth in Q3.

是的，拉里，早安。不，絕對是。我們在第三季觀察到的實際上有幾個因素。一是繼續履行我們對客戶所做的承諾。其次，在某些情況下，我們的客戶加快了一些計劃，並要求我們提前一點交付，但他們已經在 2024 年下半年內進行了考慮和計劃。因此，這實際上主要是因為時機使我們在第三季度獲得了額外的成長。

Got you. And Eric, I know it's too early to look out to 2025. But it does sound like, without putting, an actual number on it, it does feel like you guys are perhaps a little more confident that we at least, begin that recovery, maybe don't get fully normalized for the full year. But do you feel like as you look out, we could have a relatively normal kind of demand year for you guys or, or not much inventory destocking at least going forward.

明白你了。Eric，我知道現在展望 2025 年還為時過早。但聽起來確實像是，沒有給出一個實際數字，確實感覺你們可能更有信心了，我們至少開始復甦，也許全年不會完全正常化。但你是否覺得，從你的觀察來看，我們可能會有一個相對正常的需求年，或者，或至少在未來不會有太多的庫存去化。

Yeah, Larry, there's a couple of factors around there. One is the underlying focus of our business is very, very strong and we continue to participate in the very attractive areas and a number of initiatives are in flight and the tractions are -- the traction is very positive. We have been speaking about the stock in the last quarter, we call, we kind of highlighted what we felt was going to kind of play out in 2024 and that's what's happening.

是的，拉里，有幾個因素。一是我們業務的根本重點非常非常強大，我們繼續參與非常有吸引力的領域，許多舉措正在實施，而且吸引力非常積極。我們在上個季度一直在談論這隻股票，我們打電話強調了我們認為 2024 年將會發生的事情，而這就是正在發生的事情。

We're seeing the consistent -- it's consistent to what we said earlier, which is basically, we do believe in our pharma business that has mostly normalized as we speak. And so, you can see that with a bit of return to growth in that particular area. We're seeing improving trends in biologics, but we did say that that would be throughout Q3 and a little bit in Q4. So we do see that continue to play out as is. And then we did call out and we still do destocking with some generic customers that go into 2025.

我們看到的是一致的——這與我們之前所說的一致，基本上，我們確實相信我們的製藥業務在我們講話時基本上已經正常化。因此，您可以看到該特定領域出現了一些成長回歸。我們看到生物製劑的趨勢有所改善，但我們確實說過這將在整個第三季和第四季有所改善。所以我們確實看到這種情況繼續按原樣進行。然後我們確實呼籲，並且在 2025 年之前我們仍然對一些普通客戶進行庫存削減。

So what I -- my comment was around starting to see signs of stabilization with our business because it's consistent to the conversations we're having with the customers today. And there tends to be a little more positive in those conversations, but let's get through Q4 before we even comment about '25 at this point in time.

所以我的評論是關於我們的業務開始看到穩定的跡象，因為這與我們今天與客戶的對話是一致的。這些對話往往會更加積極一些，但在我們此時評論 25 年之前，讓我們先回顧一下第四季。

No, great. I really appreciate that color. Just so I can squeeze one last question, just CapEx plans going forward. Does this feel like this is the peak year or, you know, or could '25 be sort of similar? Roughly, any thoughts on that, Bernard?

不，太好了。我真的很欣賞這種顏色。我可以問最後一個問題，即未來的資本支出計畫。這是否感覺今年是高峰年，或者，你知道，或者 25 年可能有點類似？伯納德，大概對此有什麼想法嗎？

Yeah, it's, I think, again, we'll give guidance on CapEx for '25 in February, but it is something that we are looking at based on, the demand, what we're seeing and where the capacity increases that we need to add, we'll continue to add, where we see growth, and we continue to review those programs. But over the next I would say 12 to 24 months, we will be looking to get back to more normalized level of CapEx. And that's the trend that we're starting to see, Larry.

是的，我想，我們將在 2 月再次給出關於 25 年資本支出的指導，但我們正在根據需求、我們所看到的以及我們需要的產能增加來考慮這一點要補充的是，我們將繼續添加我們看到增長的地方，並且我們將繼續審查這些計劃。但在接下來的 12 到 24 個月內，我們將尋求恢復到更正常化的資本支出水準。拉里，這就是我們開始看到的趨勢。

Got you. Great. Appreciate it. Thanks, guys.

明白你了。偉大的。欣賞它。謝謝，夥計們。

Paul Knight, KeyBanc.

保羅奈特，KeyBanc。

Hi, Eric. You know the comment about wearable injection devices, does that mean Phoenix line is building, producing? And then follow up is, could we get an update on Grand Rapids Michigan and the Dublin facility as well?

嗨，艾瑞克。您知道有關可穿戴注射設備的評論，這是否意味著菲尼克斯生產線正在建造、生產？接下來，我們能否了解密西根州大急流城和都柏林工廠的最新情況？

Yeah. Good morning, Paul, and thanks for the question. On the twofold, the first one on SmartDose, particularly our Phoenix facility, you're correct. That ramp up started in Q3 where we did receive FDA approval for commercial manufacturing into the market. And we're really excited about that new team that has been put together and just the level of capability of the ramp up their meeting expectations. And I'm really proud of that team to really go from a brand-new facility and now producing high quality product that's going into the market. So I'm very pleased.

是的。早安，保羅，謝謝你的提問。在雙重方面，第一個是關於 SmartDose，特別是我們的菲尼克斯工廠，你是對的。這種成長從第三季開始，我們確實獲得了 FDA 的商業生產批准進入市場。我們對組建的新團隊感到非常興奮，而且他們的能力水平也提高了他們的期望。我為這個團隊感到非常自豪，他們從全新的工廠開始生產即將進入市場的高品質產品。所以我很高興。

Well that, as you know, a lot of these startups the ramp ups do take time. So it's going to be -- it's going to take several quarters to get to what I call peak throughput. But the initial results are very positive. In regard to the facilities investments in Grand Rapids and Dublin, these are two contract manufacturing facilities that are really focused on the -- to build, support our customers and GLP-1s.

如您所知，許多新創公司的發展確實需要時間。因此，需要幾個季度才能達到我所謂的峰值吞吐量。但初步結果非常正面。關於大急流城和都柏林的設施投資，這是兩個合約製造設施，真正專注於建造和支持我們的客戶和 GLP-1。

And Grand Rapids Michigan that is still ramping up as we speak. We are producing commercial product but it is still in ramp up phase as you know, that takes probably a good three to five quarters to really get to the levels that we expect and what our customers expect parts throughput.

就在我們說話的時候，密西根州大急流城的疫情仍在加劇。我們正在生產商業產品，但如您所知，它仍處於提升階段，可能需要三到五個季度才能真正達到我們期望的水平以及客戶期望的零件吞吐量。

And Dublin is a little bit longer. This is kind of a two-stage approach. The first is the manufacturing of the devices for contract manufacturing again GLP-1s. And that will commence shortly probably early 2025. And as that ramp ramps up, we're also adding in that facility, already communicated before but just to reiterate, the drug handling.

而都柏林則稍長。這是一種兩階段的方法。第一個是製造再次用於合約製造的 GLP-1 設備。這將於 2025 年初開始。隨著數量的增加，我們還增加了該設施，之前已經溝通過，但只是重申一下，毒品處理。

So we'll be taking a finished drug product contained and put it with our -- the device that we're going to manufacture there. So, it's a complete solution for our customer. We're really excited about that. Because that's playing out our high value product or a high value focus on contract manufacturing, adding services and capabilities that really help us expand, not just revenue but also margin in that particular business. So they're different timelines, they're on right now. Teams are executing within as planned. And I'm excited to see full production in the near future from both sites.

因此，我們將取出其中包含的成品藥品，並將其與我們將在那裡製造的設備放在一起。因此，這對我們的客戶來說是一個完整的解決方案。我們對此感到非常興奮。因為這正在發揮我們的高價值產品或對合約製造的高價值關注，增加真正幫助我們擴展的服務和能力，不僅是收入，而且是特定業務的利潤率。所以它們的時間線不同，但它們現在就開始了。團隊正在按計劃執行。我很高興看到這兩個地點在不久的將來全面投入生產。

Just to also on the Phoenix site, that's in two phases. What we've added at currently is another kind of manual, semi-automated line. And that's what we're ramping. And then as we progress through 2025, we'll be implementing a fully automated line to drive production efficiencies and greater levels of utilization and also to meet the customer demand for that product. So that that will happen throughout 2025. So we expect to see margin improvements in that product line over the next 6 to 12 months.

就在鳳凰城網站上，這也分為兩個階段。目前我們增加的是另一種手動、半自動生產線。這就是我們正在努力的方向。然後，隨著 2025 年的進展，我們將實施一條全自動生產線，以提高生產效率和更高的利用率，並滿足客戶對該產品的需求。這將在 2025 年發生。因此，我們預計該產品線的利潤率在未來 6 至 12 個月內將有所改善。

Thanks.

謝謝。

Michael Ryskin, Bank of America.

麥可‧萊斯金，美國銀行。

Hey, thanks for taking the question, guys. Going back to some of your comments on 3Q benefiting from some timing, meeting some customers ahead of schedule. Just curious if you can dig into that, was it one or two large orders or was it a little bit broader in terms of the timing benefit? Was it in -- more of the Pharma customer where you talked about, destocking normalizing or in biologics?

嘿，謝謝你們提出問題，夥計們。回到你對第三季的一些評論，受益於一些時機，提前會見一些客戶。只是好奇您是否可以深入研究這一點，這是一兩個大訂單，還是在時間效益方面更廣泛？您談到的比較是製藥客戶的去庫存標準化還是生物製劑？

And are there -- now that you've completed those orders, and you deliver them in 3Q, are there others sort of behind them to fall into queue in terms of backlog, is there other work behind that to backfill?

既然您已經完成了這些訂單，並在第三季交付，那麼在積壓方面是否還有其他訂單需要排隊，是否還有其他工作需要回填？

Yeah, Michael, thank you for the question, and good morning. The work that we did with our customers is somewhat broad. I would isolate it to one or two customers, and it was primarily in the areas of biologics and pharma. And so there's specific reasons behind it, but these are obviously requests we already had in our production plans, our schedules to be able to support our customers on these specific products, but they were brought forward to meet their needs and their demand.

是的，邁克爾，謝謝你的提問，早安。我們與客戶所做的工作有些廣泛。我會將其隔離給一兩個客戶，主要是在生物製劑和製藥領域。因此，這背後有具體的原因，但這些顯然是我們在生產計劃和時間表中已經提出的要求，以便能夠在這些特定產品上支持我們的客戶，但它們是為了滿足他們的需求和需求而提出的。

Now, obviously we won't comment, into 2025 but as we think about for the rest of the year, as our customers continue to replenish their orders, we will obviously be ready to respond if orders do come in in later this quarter, in Q4 for those particular customers. But as we speak right now, that's the reason why you see we call out a little bit earlier delivery of those particular products into Q3 versus Q4.

現在，顯然我們不會對 2025 年發表評論，但考慮到今年剩餘時間，隨著我們的客戶繼續補充訂單，如果訂單確實在本季度晚些時候收到，我們顯然會準備好做出回應。第四季針對那些特定客戶。但正如我們現在所說，這就是為什麼我們要求將這些特定產品提前交付到第三季而不是第四季的原因。

Okay, thanks. That's helpful. And quick follow up on the -- you talked through the changes on the top line for the guide. For EPS, I think you raised the midpoint by $0.15, but $0.05 of that -- $0.04 was incremental stock based comp $0.01 was FX. The $0.10 that's operational, is that driven by the mix? The onetime benefit the $19 million you saw in the third quarter, just talk us through the $0.10 there.

好的，謝謝。這很有幫助。並快速跟進 - 您談到了指南頂行的更改。對於每股收益，我認為你將中點提高了 0.15 美元，但其中 0.05 美元——0.04 美元是增量股票補償，0.01 美元是外匯。可行的 0.10 美元是由混合驅動的嗎？您在第三季看到的一次性收益為 1900 萬美元，請告訴我們其中的 0.10 美元。

It's driven by a number of things. Mix was part of it. Our operating margin was a little bit stronger than we would have initially anticipated. And so it's really managing mix and also managing costs within our business on an ongoing basis to drive that margin improvement and improvement in EPS. Not just one thing.

它是由很多因素驅動的。混合是其中的一部分。我們的營業利益率比我們最初預期的要高一些。因此，它實際上是在持續管理我們業務的組合和成本，以推動利潤率的提高和每股盈餘的提高。不只是一件事。

David Windley, Jefferies.

大衛溫德利，傑弗里斯。

Hi. At the risk of asking a simple question, I noted, I guess first, you've used the NovaBrand brand in commentary today, and I know you also talked about that at a conference in the quarter, but I think that's the first time we had heard that and I noted that in your comments today, you did also use NovaPure. So, they seem to be distinctly different or maybe parts of the same broad category. Could you talk about what NovaBrand is? What it includes? How new is it, and how is it that it is the source of growth in some and the source of headwind in others?

你好。冒著問一個簡單問題的風險，我注意到，我想首先，您今天在評論中使用了NovaBrand 品牌，我知道您也在本季度的一次會議上談到了這一點，但我認為這是我們第一次我聽說過，並且我注意到在您今天的評論中，您也確實使用了 NovaPure。因此，它們似乎截然不同，或者可能屬於同一大類。您能談談 NovaBrand 是什麼嗎？它包括什麼？它有多新？ 它為何成為某些國家成長的源泉，而有些國家則成為逆風的根源？

Yeah. That's a good question. Thanks for joining us this morning. So NovaBrand is, it encompasses the quality design principles of our highest quality product, one is NovaPure, which is the laminated version with FluroTec. And then the non-laminated version is NovaChoice. And what you'll find is NovaPure is highly adapted in the -- it's called in the biologics area. And NovaChoice tends to be more adopted in the pharmaceutical area that does require the coding.

是的。這是個好問題。感謝您今天早上加入我們。NovaBrand 就是這樣，它包含了我們最高品質產品的品質設計原則，其中之一是 NovaPure，它是與 FluroTec 層壓的版本。然後非層壓版本是NovaChoice。您會發現 NovaPure 非常適合生物製劑領域。NovaChoice 往往在需要編碼的製藥領域中得到更多採用。

And so that's the nomenclature of the products. Now, NovaChoice, it depends on the segment. So NovaPure is again, as I mentioned, really well adopted in the biologics. And that's where we had some destocking occur throughout 2024. We called that out in Q3, we anticipate a little bit of going into Q4. And the NovaChoice, that is one of the key solutions in the GLP-1s for us to support our customers.

這就是產品的命名法。現在，NovaChoice，這取決於細分市場。因此，正如我所提到的，NovaPure 再次在生物製劑中得到了很好的採用。這就是我們在 2024 年進行一些去庫存的地方。我們在第三季就指出了這一點，我們預計第四季會有所改善。NovaChoice 是我們為客戶提供支援的 GLP-1 中的關鍵解決方案之一。

And so as you can imagine the ramp up that we're starting to see in the GLP-1s, we're able to support them with their high participation rate. Really NovaChoice is not so (inaudible) that we provide our customers in that area. So that's how it's defined, they -- between the two.

因此，您可以想像我們開始在 GLP-1 中看到的成長，我們能夠透過他們的高參與率來支持他們。實際上，NovaChoice 並不是（聽不清楚）我們為該領域的客戶提供服務。這就是它的定義，它們——介於兩者之間。

Very helpful. If I could ask, I'm going to squeeze two follow ups. So just on what you just answered, is the NovaChoice pricing similar to NovaPure. And then secondly, Eric, on your comments about participation rate, remaining very high, which you've been very consistent about, would you be willing to talk about what you think your wallet share is?

非常有幫助。如果我可以問的話，我會擠出兩個後續行動。根據您剛才的回答，NovaChoice 的定價是否與 NovaPure 類似。其次，艾瑞克，關於你對參與率的評論，參與率仍然很高，你對此一直非常一致，你願意談談你認為你的錢包份額是多少嗎？

So I think -- I believe your definition of participation rate is your specced-in on the product. How does that look in terms of sole versus dual source or otherwise in the participation rate? So price on NovaChoice and then wallet share, please. Thanks.

所以我認為——我相信你對參與率的定義是你對產品的指定。就單一來源與雙重來源或其他參與率而言，情況如何？請在 NovaChoice 上定價，然後分享錢包。謝謝。

Yeah, David, NovaChoice is it's between $0.15 to $0.30 per unit on ASP, 50% to 60% margin, EV kind of perspective. So the key differentiator again is the barrier code of FluroTec between that and NovaPure, which technically, I mean from a user need basis is quite a significant difference between barrier and non-barrier.

是的，David，NovaChoice 的平均售價為每單位 0.15 至 0.30 美元，利潤率為 50% 至 60%，從 EV 角度來看。因此，關鍵的區別在於 FluroTec 和 NovaPure 之間的屏障程式碼，從技術上講，我的意思是從使用者需求的角度來看，屏障和非屏障之間存在相當大的差異。

And in regard to participation, you're right. We do look at, are we specced-in in the filings of our customer -- the drug companies of our product. And are there is a few cases where you do see dual sourcing but what we are seeing and we continue to see is that we, in these particular examples, we are very high as far as the percentage of the -- on the drug molecule. And that hasn't changed.

關於參與，你是對的。我們確實會查看我們的客戶（我們產品的製藥公司）的文件中是否指定了我們。在某些情況下，你確實會看到雙重來源，但我們所看到的以及我們繼續看到的是，在這些特定的例子中，我們在藥物分子上的百分比非常高。這一點沒有改變。

If you're talking about a particular area like GLP-1, we're really a key player in that space from all -- from a volume perspective. So and that's pretty consistent as we look at biologics in other areas. Yes, there is some testing for dual sourcing capabilities, but that's more for -- it's not as frequent and it's more on new launches, not on existing molecules in the marketplace.

如果您談論的是像 GLP-1 這樣的特定領域，那麼從數量角度來看，我們確實是該領域的關鍵參與者。因此，當我們研究其他領域的生物製劑時，這非常一致。是的，對雙重採購能力進行了一些測試，但這更多的是——它不那麼頻繁，而且更多的是針對新產品的發布，而不是針對市場上現有的分子。

Very good. I appreciate the answers. Thank you.

非常好。我很欣賞這些答案。謝謝。

Great. Thank you.

偉大的。謝謝。

Matt Larew, William Blair.

馬特拉魯，威廉布萊爾。

Hi, good morning. I wanted to ask about contract manufacturing gross margins that were up nearly [400] basis points sequentially. You've referenced obviously scaling capacity at -- in Dublin and Grand Rapids, and also adding new capabilities with higher revenue margin potential. Most of the story over the last, you know, 5, 7 years has been margin expansion on the proprietary product side. Just wonder if you could maybe, using this quarter as a window into what the potential is for contract manufacturing moving forward.

嗨，早安。我想詢問合約製造毛利率，該毛利率環比增長了近 [400] 個基點。您明顯提到了都柏林和大急流城的產能擴展，並且還添加了具有更高收入利潤潛力的新功能。你知道，過去五、七年的大部分故事都是專有產品的利潤擴張。只是想知道您是否可以利用本季作為了解合約製造未來潛力的窗口。

Yeah, Matt, I think if you're looking out over the next like 12 to 24 months, we see a slight uptake on the contract manufacturing as the drug handling and you know, business comes on board because that is a very different margin profile for our current contract manufacturing business.

是的，馬特，我想，如果你展望未來 12 到 24 個月，我們會看到合約製造隨著毒品處理而略有增加，你知道，業務開始增加，因為這是一個非常不同的利潤狀況對於我們目前的合約製造業務。

But for us to scale that is going to take a little bit of time. So, I would anticipate the margins around contract manufacturing to be relatively consistent with what they are now. If we get a little bit of variability between quarters, depending on product mix and the level of kind of DA or engineering work that's involved that's pretty consistent, and then within the high teen. So it's more a lot longer term where we would see a -- like a significant step up in the margins within CM.

但對我們來說，擴大規模需要一點時間。因此，我預計合約製造的利潤率將與現在相對一致。如果我們在季度之間出現一點變化，具體取決於產品組合以及所涉及的 DA 或工程工作類型的水平，那麼這種變化是相當一致的，然後在高青少年範圍內。因此，從更長遠的角度來看，我們會看到 CM 的利潤率顯著提高。

Okay. As a follow up again, a number of times today called out the GLP as an offset, some of the destocking. You're strong here in that space. Sometimes it's hard from the outside to compare the cadence of benefit to you versus what we might see from some of the drug companies themselves in terms of their sales reporting. Could you just give me sort of a state of the union as to where you see, to the size of your business today to the extent you can quantify that? And also any updated thoughts on go forward growth and market opportunity. Thanks.

好的。作為後續行動，今天多次呼籲 GLP 作為補償，部分去庫存。你在那個空間裡很強大。有時，從外部很難將帶給您的好處與我們從一些製藥公司本身的銷售報告中看到的效果進行比較。您能否向我介紹一下您的情況、您目前的業務規模以及您可以量化的程度？還有關於未來成長和市場機會的任何最新想法。謝謝。

Matt, just to clarify, we're just specifically focused on the GLP-1s. I didn't -- I just want to make sure I heard that correctly.

Matt，澄清一下，我們只是特別關注 GLP-1。我沒有——我只是想確保我沒聽錯。

Correct. Yes.

正確的。是的。

Okay, great. Thanks, Matt. Sorry. I just want to make sure I heard correctly. Yeah. No, absolutely. So, we will not talk about the demands of our customers. I would refer to them on the future demand of their -- of the GLP-1s in the market.

好的，太好了。謝謝，馬特。對不起。我只是想確保我聽對了。是的。不，絕對是。所以，我們不會談論客戶的需求。我會向他們介紹 GLP-1 市場的未來需求。

But if we take a look at our -- how we are positioned, the agreements we are in place, or where we play. We play in two areas, one in proprietary, which is the [glass version seals] and then the other area is contract manufacturing.

但如果我們看看我們的定位、我們達成的協議或我們的工作地點。我們在兩個領域開展業務，一個是專有領域，即[玻璃版密封件]，另一個領域是合約製造。

Let me just touch on contract manufacturing quickly, then move back to proprietary. In that area, we do participate as I mentioned earlier around, for example, the investments in Grand Rapids and also in Dublin, to manufacture and assemble the auto injectors and pens. So we do participate in that, but that is, as you can tell, it's highly competitive. We're selective on what's projects or initiatives we want to take on because it's heavily capital intensive. And so we're participating in that area, and it does support us with our large customers, but it's very selective. On the proprietary side -- and that growth by the way will be dependent on end-patient conception. So whether it's a pen or auto injector.

讓我快速談談合約製造，然後回到專有製造。正如我之前提到的，我們確實參與了該領域的投資，例如在大急流城和都柏林的投資，以製造和組裝自動注射器和注射筆。所以我們確實參與其中，但正如你所知，它的競爭非常激烈。我們會選擇性地選擇我們想要進行的專案或舉措，因為它是資本密集的。因此，我們正在參與該領域，它確實為我們的大客戶提供了支持，但它是非常選擇性的。在專有方面——順便說一下，這種增長將取決於最終患者的受孕。所以無論是筆還是自動注射器。

On the proprietary side, if it's a file configuration, we're obviously there with their stoppers, we have been, we will continue to be. And then if it is in a pen or an auto injector, we do provide the plungers and also insulant sheeting if needed on their configuration. And that is our -- is very high as far as the volumes that we are producing.

在專有方面，如果是文件配置，我們顯然會阻止他們，我們一直是，我們將繼續如此。如果是筆或自動注射器，我們會提供柱塞，如果需要的話，我們也會提供絕緣片。就我們的生產量而言，這是非常高的。

Going forward, we have forecast -- we really haven't (inaudible), Matt. We haven't really called that out as a specific area. But it is starting to pick up with the investments we put in. If we look forward, what we need to do to be able to support that growth, the capital that we require, a lot of it's already installed, which is very positive. We do need over time based on the forecast that we are working with our customers on, is looking at maybe some more HVP finishing similar to what we put in Kinston, we're putting into Jersey Shore and also in Eschweiler.

展望未來，我們有預測——我們真的沒有（聽不清楚），馬特。我們還沒有真正將其稱為特定領域。但隨著我們的投資，它開始回升。如果我們展望未來，我們需要做什麼才能支持這種成長，我們需要的資本，其中許多已經安裝，這是非常積極的。根據我們與客戶合作的預測，隨著時間的推移，我們確實需要考慮更多的 HVP 精加工，類似於我們在金斯頓、澤西海岸和埃施韋勒的投入。

But it's really the finishing area that we are looking at as you know, that's fungible to other types of customers like biologics, [run HPP]. So that's kind of where the investment thesis will be if and when needed. But fortunately, we have -- because of our investments over the last few years really supports the growth in this particular area going forward.

但正如你所知，這確實是我們正在關注的精加工領域，它可以與其他類型的客戶（例如生物製劑）進行替代，[運行 HPP]。因此，如果需要的話，這就是投資主題的所在。但幸運的是，我們——因為我們過去幾年的投資確實支持了這一特定領域的未來成長。

Okay, thanks a lot, Eric.

好的，非常感謝，埃里克。

Justin Bowers, DB.

賈斯汀·鮑爾斯，DB。

Can you maybe at a high level, just talk about what inning you think we're in with respect to destocking? And then are there amongst the different components, are you closer to the finish line versus others like, you know, let's say standard versus NovaPure versus FluroTec? And then part two would be just around the margins. You know, you've had some pretty high decrementals this year, as volumes begin to normalize, is there any reason why you wouldn't have greater incrementals on the way back up and, and maybe above construct?

您能否從高層角度談談您認為我們在去庫存方面處於哪一階段？然後，在不同的組件中，與其他組件相比，您是否更接近終點線，例如標準組件、NovaPure 組件和 FluroTec 組件？然後第二部分就處於邊緣。你知道，隨著交易量開始正常化，今年你已經有了一些相當高的減量，有什麼理由讓你在恢復過程中不會有更大的增量，甚至可能高於構造？

Yeah, just let me take the first part, and then Bernard, if you don't mind, the second part. In regards to kind of where we are with the destocking area, I think the way that we've been consistently communicating is that it's not equal across the entire customer portfolio and or product portfolio. But by the way, the product portfolio is really driven by the market segments.

是的，讓我先講第一部分，然後伯納德，如果你不介意的話，講第二部分。關於我們在去庫存方面的情況，我認為我們一直在溝通的方式是，整個客戶組合和/或產品組合的情況並不相同。但順便說一句，產品組合實際上是由細分市場驅動的。

And so, we've been pretty clear that in the Pharma area, the small molecule, we've seen that more normalized recently. So we feel if you want to look at from the spectrum, it's closer to the end, let's say. And we're starting to see more normalization of order pattern and future outlook.

因此，我們非常清楚，在製藥領域，小分子，我們最近看到它更加正常化。所以我們覺得，如果你想從光譜上看，那麼可以說，它更接近終點了。我們開始看到訂單模式和未來前景更加正常化。

When we look at the biologics, it is very clear with our customer conversations. If you take the drug delivery devices up the table from a discussion point of view, the last version products used for containments, that particular area, we continue to see destocking in Q3. And as we mentioned, we'll see a little bit more in Q4.

當我們查看生物製劑時，我們的客戶對話非常清楚。如果您從討論的角度將藥物輸送設備放在表格中，則用於遏制該特定區域的最新版本產品，我們將繼續看到第三季度的庫存減少。正如我們所提到的，我們將在第四季度看到更多。

We do see that getting closer to the end, but we, -- let's go through our Q4. And as we think about our order book going forward, we'll update you in the first part of the year, about 2025. Biologics, so we've been pretty consistent that particularly a few customers that we believe that while there's some positive conversations about future demand, it's -- we do believe that's going to continue into the first part of 2025. So that's how we look at it from a destocking point of view.

我們確實看到事情已經接近尾聲，但是我們——讓我們回顧一下第四季度。當我們考慮未來的訂單時，我們將在今年上半年（約 2025 年）向您通報最新情況。生物製劑，所以我們一直非常一致，特別是一些客戶，我們認為，雖然對未來需求進行了一些積極的對話，但我們確實相信這種情況將持續到 2025 年上半年。這就是我們從去庫存的角度來看的。

I didn't give you an aggregate total on that, but it is mixed based on the customer segments. And it's pretty consistent -- it's playing out as we started to communicate, as [we called out] in the last quarterly call. And we'll keep -- keep an eye on that and make sure that we deliver in the year, reassess as we think about going forward. So the margin conversation, Bernard, can you talk about that?

我沒有給你一個總計，但它是根據客戶群混合的。而且它非常一致——正如我們在上一季度電話會議中所呼籲的那樣，當我們開始溝通時，它就開始發揮作用。我們將繼續關注這一點，確保我們在今年實現目標，並在考慮未來時重新評估。那麼關於保證金的談話，伯納德，你能談談嗎？

Yeah. On the margin, what we would expect is when demand normalizes and our mix normalizes that we would get back to our 2023 levels of operating margin, and then through the long-term construct, grow 100 basis points per year off that. When we look at what's occurred this year in '24, it's much of the destocking we've seen within biologics and generics. And that's where typically we would tend to see more HP product sales. And obviously, then the margin impact has been greater than what we would have seen prior to that, when we saw destocking within Pharma.

是的。就利潤率而言，我們預計，當需求正常化且我們的組合正常化時，我們將恢復到 2023 年的營業利潤率水平，然後透過長期建設，每年增長 100 個基點。當我們回顧 24 年今年發生的情況時，我們看到的主要是生物製劑和仿製藥領域的去庫存。這通常是我們傾向於看到更多惠普產品銷售的地方。顯然，利潤率的影響比我們之前看到的更大，當時我們看到製藥公司內部庫存減少。

I would [connect] -- if you go back and look at our margin expansion over 2021 and into '22, a lot of that was driven by HPP growth and that mix shift. So that shows you the power of the construct we have. And when that biologics engine starts growing again, it gets back to normalized levels of growth, we would expect to see that margin start to expand. And first thing is we need to get back to like pre-2024 levels of margin and then start growing off that, we're confident that will happen over time.

我想[聯繫]——如果你回顧一下我們在 2021 年和 22 年的利潤率擴張，你會發現其中很大一部分是由 HPP 成長和混合轉變推動的。這向您展示了我們所擁有的結構的力量。當生物製劑引擎再次開始成長，恢復到正常成長水準時，我們預期利潤率將開始擴大。首先，我們需要回到 2024 年之前的利潤水平，然後開始成長，我們相信隨著時間的推移，這將會實現。

Thank you. I'll hop back in queue.

謝謝。我會跳回隊列。

Thomas DeBourcy, Nephron Research.

托馬斯·德布西，腎單位研究。

Hi, thanks for taking the question. I just had a question around, I guess generalized customer behavior in terms of orders. I guess through kind of others, the file processing market, they've seen the [macro] customers they think more frequently versus maybe the typical -- the cadence that release, was wondering if you see a change in how customers are also ordering or if you, you should expect (inaudible)

您好，感謝您提出問題。我只是有一個問題，我想客戶在訂單方面的行為是普遍的。我想透過文件處理市場的其他人，他們已經看到了他們更頻繁地考慮的[宏觀]客戶，而不是典型的——發布的節奏，想知道你是否看到客戶訂購或訂購的方式發生了變化。（聽不清楚）

Tom, I apologize. We're having a little trouble hearing your question. Would it be possible just to maybe move a little closer to the microphone or speak up, please?

湯姆，我道歉。我們在聽到你的問題時遇到了一些困難。能不能靠近麥克風一點或大聲說出來？

Sorry. Can you hear me?

對不起。你聽得到我嗎？

Much better. Thank you.

好多了。謝謝。

Okay, I apologize. Yeah, my question was, I guess around specifically kind of customer orders at a more general -- in a more general way. We've heard from some companies of bio-processing supply chain that customers are ordering, doing smaller orders more frequently versus I guess their typical kind of cadence and was wondering if you had seen any changes at all there. And -- or whether you expect it to kind of go to back to historical kind of timing and cadence there?

好吧，我道歉。是的，我的問題是，我猜想以更一般的方式圍繞特定類型的客戶訂單。我們從一些生物加工供應鏈公司那裡聽說，與我猜他們典型的節奏相比，客戶正在更頻繁地訂購較小的訂單，並想知道您是否看到了任何變化。還是你期望它會回到歷史的時機和節奏？

Yeah. Thank you for the question. And when we look at order pattern right now as we -- with our customers, it's more in line with the pre-COVID time period. I think if we -- and it is different than during the pandemic period of time and also in the last, call it end of 2023 going into 2024. And then there's two drivers of that, one, as I think you pointed out is more normalized -- starting to get to more normalized or stabilized environment.

是的。謝謝你的提問。當我們現在與客戶一起審視訂單模式時，它更符合新冠疫情之前的時期。我認為，如果我們將 2023 年底稱為 2024 年，這與疫情期間和過去的情況不同。然後有兩個驅動因素，其中一個，正如我認為你指出的那樣，是更正常化的——開始進入更正常或穩定的環境。

But secondly, is, as you recall, in our -- during the pandemic time, our lead times were significantly higher because of the demand on not just the core business but also on the materials used for the pandemic. When I say that, I am very proud of the team and how they have, with the invested capital with the -- so with the capacity we have online with multiple sites, particularly on the high value products, we're able to support our customers in a much more timely fashion, if not equal or better than we did pre-pandemic. And give you an idea that's like 8 to 12 weeks to make the order. It is highly customized.

但其次，正如您所記得的那樣，在大流行期間，我們的交貨時間明顯更長，因為不僅對核心業務有需求，而且對大流行所使用的材料也有需求。當我這麼說時，我為這個團隊以及他們的投資感到非常自豪——因此，憑藉我們在多個網站上擁有的在線能力，特別是在高價值產品方面，我們能夠支持我們的即使不能與大流行前相同或更好，也可以更及時地為客戶提供服務。並給你一個大概 8 到 12 週的時間來下訂單。它是高度客製化的。

So -- and during the pandemic, we're reaching 40 to 50 weeks. So it is a significant difference. So I just want to highlight that because there's two factors of why we're seeing order patterns change. One from a market pharmaceutical supply chain effect, and the other one was really our lead times and customers are much more comfortable today and confident in our ability to deliver their product from multiple sites on time, each and every time that they requested. So hopefully, I addressed your question, but we are seeing a change.

因此，在大流行期間，我們的等待時間將達到 40 到 50 週。所以這是一個顯著的差異。所以我想強調這一點，因為有兩個因素導致我們看到訂單模式發生變化。一是來自市場藥品供應鏈效應，二是我們的交貨時間，客戶現在更加放心，並且對我們每次按時從多個地點按時交付他們的產品的能力充滿信心。希望我回答了你的問題，但我們看到了改變。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

Thank you. I'm showing no further questions at this time. I would now like to turn it back to John Sweeney for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請約翰·斯威尼（John Sweeney）發表結束語。

Well, thank you all for joining us today on the conference call. And online archive of the broadcast will be available on our website at westpharma.com in the Investors section. Additionally, you may access a 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 the call. Thank you very much and have a good day.

好的，感謝大家今天參加我們的電話會議。廣播的線上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 來觀看本次簡報後 30 天內的重播。通話結束。非常感謝您，祝您有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。