Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $805 million, representing a 5% increase on an organic basis and a 7.7% increase on a reported basis [5][14] - Adjusted operating margins were 21.1%, while adjusted EPS was $1.96, up 6% compared to the prior year [5][17] - Year-to-date operating cash flow increased by 9% to $504 million, and free cash flow rose by 54% to $294 million [17] Business Line Data and Key Metrics Changes - Proprietary product segment revenues were $648 million, up 5.1% organically, driven by HVP components which saw a 13% organic growth [7][14] - HVP delivery device revenues declined by 16.7% year-on-year to $99 million, primarily due to a prior year incentive payment [10][14] - Contract manufacturing segment revenues were $157 million, growing by 4.9% organically [11][16] Market Data and Key Metrics Changes - Biologics revenue was $329 million, up 8.3% organically, while pharma revenue rose 1.4% to $183 million [15] - GLP-1 elastomers now account for 9% of total company sales, indicating strong growth in this area [8][44] Company Strategy and Development Direction - The company is increasing its guidance for 2025 due to strong performance and expects continued momentum in its business [6][18] - Focus on high-value product components, particularly in the GLP-1 and Annex 1 markets, is expected to drive future growth [21][46] - The company is actively working on optimizing its manufacturing network and enhancing operational efficiencies [77][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in HVP components, driven by biologics and biosimilars [24][30] - The company anticipates a transition period in 2026 as it exits the CGM contract, but is optimistic about backfilling with higher-margin business [35][36] - Management highlighted the importance of maintaining strong relationships with customers to navigate market dynamics [66][81] Other Important Information - The company has appointed a new CFO and CTO to strengthen its leadership team and drive innovation [6][7] - The company is ramping up production in its Dublin facility, expecting to add approximately $20 million in revenue next year [12][56] Q&A Session Summary Question: Long-term growth prospects for 7% to 9% - Management believes they are on track to achieve long-term growth targets, driven by HVP components and biologics [24][25] Question: Sustainability of HVP components growth - Management is confident in the double-digit growth trajectory for HVP components, supported by strong order trends and market normalization [28][30] Question: Visibility on CGM contract exit - Management is engaged in discussions with potential customers to replace the CGM business, expecting healthy revenues and margins [35][36] Question: Margin opportunities - Management sees opportunities for margin expansion through operational efficiencies and higher-value product offerings [34][60] Question: Impact of Annex 1 on customer decisions - Management noted that increased regulatory conversations are accelerating project timelines and conversions related to Annex 1 [54][56]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $805 million, representing a 5% increase on an organic basis and a 7.7% increase on a reported basis [5][14] - Adjusted operating margins were 21.1%, while adjusted EPS was $1.96, up 6% compared to the prior year [5][17] - Year-to-date operating cash flow reached $504 million, up 9%, and free cash flow was $294 million, a 54% increase from last year [17][18] Business Line Data and Key Metrics Changes - Proprietary product segment revenues were $648 million, up 5.1% organically, driven by HVP components, which saw a 13% organic growth [7][14] - HVP delivery device revenues declined to $99 million, down 16.7% year-on-year organically, primarily due to a prior year incentive payment [10][14] - Contract manufacturing segment revenues were $157 million, growing by 4.9% organically [11][15] Market Data and Key Metrics Changes - Biologics revenue was $329 million, up 8.3% organically, while pharma revenue rose 1.4% to $183 million [15] - GLP-1s accounted for 9% of total company sales, with strong growth expected to continue [8][12] - The company is experiencing a normalization in demand trends for biologics and biosimilars, with a participation rate above 90% year-to-date [8] Company Strategy and Development Direction - The company is increasing its guidance for 2025 due to strong performance and improving business momentum [5][18] - Focus on high-value product components, particularly in the GLP-1 and Annex 1 markets, is expected to drive future growth [21][46] - The company is actively working on optimizing its manufacturing network and consolidating operations to enhance efficiency [75][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of positive trends due to strong execution and improving market conditions [22][66] - The company anticipates that destocking is largely behind them, with demand expected to improve for key growth drivers [21][66] - There are ongoing discussions with customers regarding new business opportunities to replace the CGM contract expected to conclude in mid-2026 [35][36] Other Important Information - The company has appointed a new CFO and CTO to strengthen its leadership team and drive innovation [6][7] - The company is ramping up production in its Dublin facility for drug handling, expected to add approximately $20 million in revenue next year [12][56] Q&A Session Summary Question: Long-term growth outlook for 7%-9% - Management believes they are on track to achieve long-term growth targets, driven by HVP components and biologics [24][25] Question: Sustainability of HVP components growth - Management is confident in the sustainability of double-digit growth for HVP components, supported by GLP-1s and Annex 1 [28][30] Question: Visibility on CGM contract exit - Management is engaged in discussions with potential customers to fill the gap left by the CGM contract, expecting healthy revenues and margins [35][36] Question: Margin opportunities - Management sees opportunities for margin expansion through operational efficiencies and higher-value products [34][60] Question: Impact of Annex 1 on customer decisions - Annex 1 projects are accelerating, with more conversations with EU regulators, leading to increased customer interest [54][56] Question: Growth in GLP-1s - Management expects continued healthy growth in GLP-1s, driven by market dynamics and new approvals [42][45]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $805 million, representing a 5% increase on an organic basis and a 7.7% increase on a reported basis [4][12] - Adjusted operating margins were 21.1%, while adjusted EPS was $1.96, up 6% compared to the prior year [4][16] - Year-to-date operating cash flow increased by 9% to $504 million, and free cash flow rose by 54% to $294 million [16] Business Line Data and Key Metrics Changes - Proprietary product segment revenues were $648 million, up 5.1% organically, driven by HVP components, which saw a 13% organic growth [5][12] - HVP delivery device revenues declined by 16.7% year-on-year to $99 million, primarily due to a prior year incentive payment [13] - Contract manufacturing segment revenues were $157 million, growing by 4.9% organically, supported by self-injected devices for obesity and diabetes [10][15] Market Data and Key Metrics Changes - Biologics revenue was $329 million, up 8.3% organically, while pharma revenue rose 1.4% to $183 million [14] - GLP-1 elastomers accounted for 9% of total company sales, indicating strong growth in this area [6][40] Company Strategy and Development Direction - The company is focused on expanding its HVP components business, particularly through GLP-1s and Annex 1 upgrades, which are expected to drive long-term growth [19][41] - The company is also working on optimizing its manufacturing network and consolidating operations to improve efficiency [67][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of positive trends due to strong execution and improving market conditions [21][58] - The company anticipates continued demand for HVP components and expects to mitigate tariff-related costs in 2025 [17][72] Other Important Information - The company has made notable executive appointments, including a new CFO and CTO, to strengthen its leadership team [5] - The company is ramping up production in its Dublin facility, expecting to add approximately $20 million in revenue next year [20][48] Q&A Session Summary Question: Long-term growth prospects for 2026 - Management believes the key drivers for growth are HVP components, biologics, and GLP-1s, with a foundation laid for double-digit growth [23][26] Question: Sustainability of HVP components growth - Management is confident in the momentum of HVP components, expecting low to mid-teens growth in Q4 [25][27] Question: CGM contract and backfill visibility - Management is engaged in discussions with customers to identify replacement business for the CGM contract, expecting healthy revenues and margins [30][32] Question: Headwinds and tailwinds for high-value components in 2026 - Management identified GLP-1s and Annex 1 as tailwinds, while timing of new drug approvals could present headwinds [38][41] Question: Capital allocation priorities - The company is focused on investing in high-value product components while maintaining a strong balance sheet and improving free cash flow [68][74]