Operating profit for the business segment, which specializes in injection molding services, came in at $18.2m, double the $9.1m recorded for the division in 2005. Fourth quarter results reflect the impact of Exubera on the segment's financial results; according to the company:
"The largest contributor to revenue growth [in the fourth quarter] was $8.9m in sales of the Exubera Inhalable Insulin device in support of Pfizer's introduction of that product in the US, up from $1.1m in the 2005 quarter."
West's Pharmaceutical Systems business segment also showed a strong year, with operating profit for the group jumping over 30 per cent to $129.7m from the $95m recorded in 2005.
The division develops, manufactures and sells components and systems for injectable, transmucosal, oral and pulmonary drug delivery, including those used for parenteral drug delivery.
Sales for the division also hopped up almost 20 per cent to $644.1m, which the company puts down to foreign currency appreciation and strong product sales in pre-filled syringe components and vial stopped products, as well as disposable syringe components.
The company as a whole recorded an operating profit for the year of $101m, up from $73.4m in 2005, and an increased sales figure of $913.3m – a significant increase on the $699.7m recorded the previous year.
The company forecasts a favourable 2007, but one that won't be without its hurdles:
"We've expanded our product offerings, repositioned our traditional products with added features, quality and service, and targeted important market segments," said West's chairman and CEO Donald Morel.
"The challenge in 2007 is to deliver improved performance while executing our planned investments to expand capacity, to bring new and innovative products to market and to broaden our geographic presence in order to sustain long term, profitable growth."
West re-evaluated and upgraded guidance regarding revenue at every quarter during 2006, as business outperformed expectations with estimates for annual revenue increasing as a result.
In 2007, the company predicts revenue growth of around 10 per cent, with estimated sales of $1bn which it expects to be driven by demand for the firm's coating technologies and insulin-related materials, components and devices.
"Our increased spending on capacity expansion and on product and process development will constrain bottom line growth in the near term, but we believe these investments are essential in order to sustain our technology and market leadership," said Morel.
The company forecasts sales of Exubera inhalation powder devices of $32m to $36m over the course of 2007, and also expects R&D spending to increase from the $11.1m in 2006 to approximately $14m in 2007.
