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West

West Pharmaceutical Services 2Q08

2Q Revenues: $279.3 million (+6%)

2Q Earnings: $28.7 million (+8%)

YTD Revenues: $550.0 million (+6%)

YTD Earnings: $55.0 million (+4%)

Comments: Revenues from the Pharmaceutical Systems unit were up 12% to $212.6 million, but were adversely affected by the slowdown in ESA drugs, including Amgen’s Epogen. In addition, two-thirds of that unit’s revenue growth derived from the weak dollar. Sales at the Tech Group unit dropped $8.1 million to $69.6 million, due to the loss of the Exubera inhaler ($10.2 million in sales) and packaging for an OTC diet product ($4.2 million). During the quarter, the company received final payment from Nektar Therapeutics to compensate for the cancellation of Exubera.

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