West Pharmaceutical Services, Inc. reported fourth-quarter 2024 net sales of $748.8 million, an increase from $732.0 million in the prior-year period, with organic net sales growing by 4.5%. The Proprietary Products segment achieved $613.9 million in net sales, driven by high-single digit organic growth in Biologics and mid-single digit growth in Pharma, primarily from self-injection device platforms. However, the Generics market unit experienced a mid-single digit organic net sales decline.
The Contract-Manufactured Products segment reported net sales of $134.9 million, a 2.5% decrease, with organic net sales declining by 2.0%. This was primarily due to a decrease in sales of healthcare diagnostic devices, partially offset by growth in self-injection devices for obesity and diabetes. Full-year 2024 net sales were $2.893 billion, a 1.9% decline from $2.949.8 billion in 2023, with organic net sales decreasing by 1.5%.
Full-year 2024 adjusted-diluted EPS was $6.75, a 16.5% decline from the previous year, while reported-diluted EPS was $6.69, a 15.1% decline. Operating cash flow for the full year was $653.4 million, a 15.9% decrease, and free cash flow declined by 33.3% to $276.4 million. The company repurchased 1,583,032 shares for $560.9 million at an average price of $354.30 during 2024.
For 2025, the company issued a full-year adjusted diluted EPS guidance of $6.15 to $6.35, and net sales projected between $2.945 billion and $2.975 billion, with organic sales growth expected at 2% to 3%. This guidance was below Wall Street estimates, leading to a significant market reaction.
The disappointing outlook was attributed to several factors, including Contract Manufacturing headwinds, specifically the loss of two major continuous glucose monitoring customers. Additionally, the company disclosed that its SmartDose wearable injector devices would be "margin dilutive" in 2025, and management was exploring all options to improve its economics. These factors contributed to a substantial decline in the company's stock price following the announcement.
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