Medical equipment maker West Pharmaceutical raises 2023 profit forecast
Oct 26 (Reuters) - Medical equipment maker West Pharmaceutical Services on Thursday raised its 2023 adjusted profit forecast for a third time, benefiting from a stronger dollar.
The company, which makes products used to deliver and package injectable therapies, also beat third-quarter estimates for profit.
However, its net sales of $747.4 million in the quarter missed LSEG estimates of $750.31 million. The company's sales have taken a hit in recent quarters from falling demand for products used in COVID-19 vaccines and therapies. Demand for COVID products has dropped significantly in the past year, leading drugmaker Pfizer to slash its full-year revenue forecast by 13% this month and announce a $3.5 billion cost-cut program.
Last month, Swiss medical technology company Ypsomed announced a long-term supply deal with Novo Nordisk for autoinjectors to be used in the next generation of weight loss and diabetes drugs that are currently hugely popular. West Pharma makes similar components.
The company now expects full-year 2023 adjusted earnings between $7.95 and $8.00 per share, compared with its previous forecast of $7.65 and $7.80.
Net income rose to $161.3 million, or $2.14 per share, in the quarter ended Sept. 30, from $120.6 million, or $1.59 per share a year earlier.
On an adjusted basis, the company earned $2.16 per share, above estimates of $1.86. (Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)
