Baron Funds Comments on West Pharmaceutical Services

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Apr 26, 2016

West Pharmaceutical Services, Inc. (NYSE:WST) manufactures components and systems for the packaging and delivery of injectable drugs. West’s shares gained during the quarter after reporting strong financial results and providing solid earnings guidance for 2016. West’s products are frequently “designed in” as part of the regulatory approval process for its clients’ drugs, which makes it quite difficult for West’s products to be displaced throughout a drug’s lifecycle. There is a substantial development pipeline of injectable biologic drugs, and we believe this will allow West to experience double-digit growth rates in its main market for at least the next several years. We also believe that West will benefit from the increased sale of high-margin proprietary products, including newly-developed plastic syringes and wearable injectors for a new generation of high volume, high viscosity drugs. As a result, we believe that company has the potential to double its earnings during the next five years.

From Baron Asset Funds' first quarter 2016 commentary.