West Pharmaceutical Services China General Manager Wang Weitao on Product Innovation and Supply Chain Upgrading Amid Global Healthcare Transformation

In recent years, the outbreak of the pandemic has made industries across the board recognize the importance of the pharmaceutical industry. Behind the shifting landscape of the pharmaceutical sector, terms in the field of life science tools—such as culture media, bioreactors, and cell lines—have sparked heated discussion within the industry.

As an observer of the healthcare industry, VCBeat New Medicine has recently launched a series of articles focusing on the life sciences tools sector. While gaining deeper insights into industrial development, VCBeat New Medicine has observed that behind the pharmaceutical supply chain, wherever drugs and drug administration are involved, there is a need for life sciences tools such as pharmaceutical packaging and drug delivery systems.

In fact, pharmaceutical packaging and drug delivery systems have long been an indispensable part of the pharmaceutical industry. Prescription medications used in daily life, disposable devices employed during blood tests or blood donation, and the more prominent cell and gene therapy products in recent years all require pharmaceutical packaging components and injectable drug delivery systems in their research, development, and manufacturing processes.

Behind this industry chain stands a “hidden giant” with nearly a century of history: West Pharmaceutical Services (NYSE: WST, hereinafter referred to as “West”). As a global provider of injection packaging solutions and services with two factories in Shanghai, West has been a firsthand witness to the shifts in supply and demand dynamics within China’s pharmaceutical industry in the post-pandemic era, offering us a new perspective on observing China’s innovative pharmaceutical sector.

VCBeat’s New Medicine interviewed Wang Weitao, General Manager of West China, to understand how this century-old company drives innovation and strategic layout behind the pharmaceutical industry chain; how it ensures stable supply amid the pandemic and tense trade situations; how it achieved continuous growth in net sales in the second quarter despite the Shanghai lockdown; and how it contributed to the fight against the epidemic.

Wang Weitao, General Manager of West Pharmaceutical Packaging China

Wang Weitao has over 20 years of experience in the life and health industry, having held leadership positions in key areas such as business management and production operations. Prior to joining West, Mr. Wang served in senior roles at several global leading companies, including DuPont, FMC Corporation, and Firmenich, where he successfully drove significant business growth through strategic planning and implementation.

Following the outbreak of the COVID-19 pandemic, global pharmaceutical companies developed multiple COVID-19 vaccines in record time. However, as these vaccines were on the verge of mass production, a severe shortage of corresponding pharmaceutical packaging emerged. Bill Gates publicly stated, “There are not even enough vaccine vials and filling lines available globally.”

The supply of pharmaceutical packaging components, including vaccine vials, became the most pressing concern for major pharmaceutical companies at the time. As a century-old global enterprise specializing in injectable container packaging and drug delivery systems, West has been a firsthand witness to the shifts in supply and demand dynamics within China’s pharmaceutical industry in the post-pandemic era, “Components manufactured by West are used in the vast majority of COVID-19 vaccines that are either already on the market or under development.“At the same time, we also provide primary packaging components for drugs used to treat COVID-19, and supply key components for certain diagnostic products used in COVID-19 testing.”

West Pharmaceutical Services has a history of nearly 100 years since its establishment in 1923. In the 1990s, West entered China and has now built two production plants in Qingpu, Shanghai. In March 2022, Shanghai, which was operating at high speed, hit the pause button due to the pandemic. As a key upstream supplier in the pharmaceutical industry, West also faced significant challenges.

“Shanghai did not fully resume work and production until June. The contrast between the previous quietude and the return of bustling activity was striking. On a personal level, I felt a sense of responsibility amid the tide of history. I often tell my family that my work is directly related to the fight against the pandemic,” recalled Wang Weitao.

In May 2021, Wang Weitao joined West Pharmaceutical Services as the General Manager of West Pharmaceutical Packaging China. Shortly after joining West, Wang was immediately confronted with the challenges posed by the Shanghai outbreak. Under these exceptional circumstances, external stakeholders were clearly highly concerned about West’s business performance.

In February this year, West Pharmaceutical Services announced its financial results for the fourth quarter and full year of 2021. According to the report, West’s net sales for the full year of 2021 reached $2.832 billion, a 31.9% increase from the same period last year; organic sales grew by 29.4%. West’s reported diluted earnings per share (EPS) for the full year of 2021 was $8.67, an 89.7% year-over-year increase; adjusted diluted EPS was $8.58, up 80.3% year over year.

This July, although West China was affected by the pandemic lockdown in the first half of the year, its released financial report for the second quarter of 2022 showed that West's global net sales in the second quarter of 2022 reached $771.3 million, a 6.6% increase from the same period last year; organic sales growth was 13.1%.

Clearly, despite the challenges posed by the pandemic, West’s global performance has increased rather than declined.

Since the pandemic,To address the surge in market demand, West has added approximately 1,000 employees globally and invested over $400 million to expand capacity for key product lines., to better meet both COVID-19-related and non-COVID-19-related needs.

As the pandemic recedes, how will West Pharmaceutical Services dilute its excess capacity in the future?

Wang Weitao responded, “We are not at all concerned that excess capacity will become a burden for West in the future.”"In recent years, the surge in emerging technologies such as cell and gene therapy has driven rapid development across the pharmaceutical industry’s upstream and downstream sectors. West has also rapidly expanded its footprint to meet the demands of emerging therapeutic areas, including cell therapy, gene therapy, and nucleic acid-based drugs. Meanwhile, strong demand persists for West’s non-pandemic-related core businesses and high-value products, effectively absorbing excess capacity resulting from the decline in pandemic-driven demand."

From a conventional business perspective, West Pharmaceutical Services primarily focuses on four major segments: biologics, generic drugs, chemical drugs, and contract manufacturing. For different types of customers, West provides the most suitable products and services.

For biopharmaceutical clients, West focuses on comprehensive packaging solutions for drugs and injection technologies; for generic drug manufacturers, West emphasizes overall production efficiency and differentiation beyond the drug molecule itself; for chemical pharmaceutical clients, West aims to help customers enhance total cost management and lifecycle management capabilities.

Especially in the biopharmaceutical sector, West has rapidly made forward-looking strategic deployments and accelerated the commercialization of innovative products in response to a fast-evolving market with continuously emerging needs.

Wang Weitao stated, “In recent years, the global biopharmaceutical industry has experienced robust growth. Numerous biotech companies have emerged not only in China but also worldwide. From the perspectives of technological pipelines and corporate development, biotech firms place particular emphasis on accelerating time-to-market. To meet the needs of these startups, West is continuously ‘revitalizing’ itself by developing new technologies, formulations, products, and services to satisfy customer demands. Leveraging global resources, West provides tailored end-to-end solutions for local clients, helping pharmaceutical companies mitigate risks and shorten product launch timelines.”

Innovation has always been a key focus for West, a century-old enterprise. “West’s innovation and R&D teams are continuously iterating on our products. Our frontline colleagues consistently gather customer feedback to promptly identify market gaps, enabling West’s R&D department to continually upgrade and innovate its products and services. Meanwhile, West closely monitors market dynamics and technological advancements across the broader healthcare industry, gaining forward-looking insights.”

In December 2021, West Pharmaceutical Services won both the “Market Potential Award” and the “Adherence Design Award” at the 2021 InnoPack Awards China for its SmartDose™ drug delivery platform and wearable electronic injector.

The SmartDose™ drug delivery platform and wearable electronic injector truly enable patient-centric self-administration. The platform offers two dosage volume options, 3.5 mL and 10 mL. The integrated wearable electronic injector can accommodate large-volume drug solutions and supports pre-programmed infusion rates, allowing for either rapid or prolonged continuous subcutaneous injection based on therapeutic needs.

Wang Weitao further explained, “SmartDose™ is designed for medications with relatively large volumes and high viscosity. With traditional injection methods, patients often experience significant pain and prolonged injection times. This product allows the medication to be pre-filled into SmartDose™ cartridges, which can then be customized according to pharmaceutical companies’ specifications—for example, by pre-programming the injection speed. It greatly meets patient needs and represents a highly innovative solution.”

Recently, West also launched the Ready Pack system, a comprehensive ready-to-use injectable packaging solution primarily designed for biologics. This integrated system includes aluminum seals, rubber stoppers, and vials, ensuring container closure integrity, reducing risks in drug development and manufacturing, and maintaining consistent stability of both the drug and its packaging throughout the entire lifecycle from clinical trials to commercial production.

Wang Weitao told VCBeat New Medicine, “Overall, West Pharmaceuticals iterates and updates relevant components and packaging materials according to different business segments. For generic drug developers, West has launched the AccelTRA® packaging component system. This set of rubber stoppers not only facilitates rapid production of generic drugs but also offers significant cost advantages. The Ready Pack system is primarily targeted at biopharmaceutical clients, providing a complete packaging solution that saves time, effort, and worry in the drug packaging process.”

West has also actively positioned itself in emerging fields such as CAR-T and iPSCs.

Wang Weitao told VCBeat New Medicine, “The storage conditions for cell and gene therapy products generally require low temperatures, which poses a significant challenge for packaging materials. In this regard, West is also actively introducing innovative products. For example, the Daikyo Crystal Zenith vials, developed by our partner Daikyo based on cyclic olefin polymer (COP), are highly suitable for cell and gene therapy products. They offer excellent safety and stability under low-temperature conditions. Compared to glass products, they do not exhibit delamination, thereby providing a certain level of protection for the drug. Furthermore, at low temperatures, they maintain good container closure integrity when paired with compatible stoppers and aluminum seals.”

After nearly a century of development, West has launched multiple product series. Leveraging comprehensive and complete formulation manufacturing expertise, West has accumulated profound technical capabilities and in-depth knowledge of global laws and regulations throughout its growth.“Pharmaceutical packaging materials are subject to regulation by drug regulatory authorities in various markets, such as the U.S. FDA and China’s National Medical Products Administration (NMPA). West has extensive experience in ensuring compliance with laws and regulations across different markets. For Chinese enterprises, West can provide enhanced customer support to facilitate the export of their products to Europe, the United States, and other countries.”Wang Weitao stated.

Whether providing products related to the pandemic or those associated with biopharmaceuticals, chemical drugs, and generic drugs, suppliers cannot avoid issues such as the safety and stability of the supply chain.

During the lockdown in Shanghai, to meet the needs of pharmaceutical companies and patients, Wang Weitao led his team to explore every possible means to ensure a stable product supply. “We haveModifying transaction models, shipping methods, logistics routes, and other approaches, ensuring that customers received their products on time during the Shanghai lockdown.”

West has also optimized its supply process internally.Wang Weitao stated, “West prioritizes the perspectives of patients and customers over its own business interests. We optimize the global allocation of packaging materials to ensure that the customers with the most urgent needs receive our products in a timely manner. First, we prioritize meeting government requirements related to COVID-19 and actively respond to governmental strategic arrangements. Second, we prioritize the supply of products for life-saving medications; if a customer’s ordered materials are intended for the production of life-saving drugs, West will give them priority. Third, we prioritize packaging materials required for the launch of innovative products or pipeline development.”

West also directly developed strategies with its partners., to ensure that products are delivered to customers as quickly as possible after resumption of work. “After we resumed operations, because we had already formulated our strategy in advance, it took us only one month to complete the production and delivery of orders that had accumulated over the previous three months.”

Leveraging its century-old foundation, West has developed a long-term strategy for supply chain flexibility to proactively mobilize its global operational footprint, ensuring that risks of supply chain disruptions caused by unforeseen events are minimized. This includes measures such as retrofitting facilities, adding new equipment, and reallocating assets during the pandemic. Furthermore, West engages in advance planning and deployment for raw material procurement to ensure the timely supply of pharmaceutical packaging materials, thereby eliminating risks of avoidable delays.

The continuous refinement of technology and ongoing optimization of products are also key reasons why pharmaceutical companies consistently choose to partner with West.

Wang Weitao told VCBeat New Pharma, “Do not underestimate the significance of small pharmaceutical packaging components, such as rubber stoppers and aluminum caps; they are critical to drug approval and market launch. Most of the packaging materials produced by West Pharmaceutical fall under primary packaging, which comes into direct contact with the drug. This requires that, in addition to adequately protecting the drug, the packaging materials must not adversely affect it. Non-compliance in areas such as extractables and leachables, puncture-induced particulate shedding, container closure integrity, particulate matter, and microbial limits can compromise drug safety and quality. Ensuring that pharmaceutical packaging meets all required performance characteristics and attributes is a systemic challenge. It demands extensive R&D cycles to identify suitable formulations, continuously optimize manufacturing processes, and validate product performance through comprehensive testing.”

To date, West has nearly 100 years of history in the field of injectable pharmaceutical packaging and drug delivery systems, accumulating extensive experience in meeting customer needs. At the early stage of a project, West proactively seeks to understand the details of the drugs being developed or manufactured by customers. Based on this information, it comprehensively considers many critical factors such as storage conditions, compatibility, and container closure integrity, and recommends suitable packaging materials or drug delivery systems from its mature product portfolio.

Wang Weitao stated, “We aim to provide customers with a systematic, holistic solution to better support the smooth advancement of their R&D pipelines, rather than merely supplying individual components such as rubber stoppers, aluminum caps, or cartridge barrels.”

Beyond the impact of the pandemic, in today’s volatile international trade landscape, supply chain security and timely product delivery are critical to the survival of pharmaceutical companies. In recent years, many foreign enterprises, including West Pharmaceutical Services, have chosen to localize their operations in the Asia-Pacific region.

During critical periods in the pharmaceutical manufacturing process, even a minor change in details can incur substantial costs. The goal of domestic substitution is to ensure the security and stability of the supply chain as much as possible. However, given the current macro environment, it is also essential to strengthen strategic synergy with international supply partners, thereby integrating into the global value chain while establishing a more secure and reliable supply chain structure.

Pharmaceutical products must be accessible to deliver clinical and social value. In controlling the costs of pharmaceutical products, upstream suppliers of consumables and equipment play a pivotal role. Looking ahead, driven by healthcare reforms, centralized procurement, and other policy trends, the prices of pharmaceutical products are expected to become more affordable. We look forward to upstream suppliers such as West Pharmaceutical Packaging collaborating closely with pharmaceutical companies to foster the development of the pharmaceutical industry.

In 2009, West established its first manufacturing facility in China in Qingpu, Shanghai; in 2013, West further invested in expanding production capacity in Qingpu by building a second plant to advance its localization strategy. This move brought the company closer to Chinese customers, enabling it to better meet their needs across various areas, including pipeline development and commercialization, while exploring new models of collaboration.

As it continues its century-long legacy of excellence, West is expected to meet customers’ growing demands and drive progress in the pharmaceutical industry by continuously optimizing its factory supply chain—through the adoption of new technologies, addition of new equipment, expansion of production capacity, and diversification of product offerings.