EXTON, Pa.—West Pharmaceutical Services Inc. reported growth in both sales and net income for the third quarter of 2016.
Sales increased 9.4 percent to $376.7 million with net income increasing to $37.6 million compared to $1.5 million in 2015. For the nine-month period ending Sept. 30, West's sales sit at $1.13 billion, compared to $1.04 billion in 2015, and net income at $104.5 million up from $62.2 million the year before.
The firm said organic sales accounted for about 10 percent of the growth in 2016.
“Fueled by our organic sales growth and a favorable product mix of high-value products, we had year-over-year gross margin expansion,” President and CEO Eric M. Green said in a statement. “Importantly, our Global Operations team remains on track to achieve our targets of reduced lead times and backlog, which is critical in ensuring a stable supply chain for our customers.”
West's Proprietary Products segment reported sales of $298.1 million, a 10.7 percent increase compared to third quarter of 2015 with 11.6 percent of the growth coming from organic sales. The segment was led by double digit growth in the Biologics unit and high single digit sales growth in the Generics unit.
The Contract-Manufactured Products segment reported $79 million in sales, fueled by sales growth and organic sales growth of 4.6 percent each.
Overall, general corporate costs decreased by $1.2 million to $6 million. The firm repurchased 117,310 shares for $9.6 million during the third quarter and through the first nine months has invested $26.8 million to repurchase 370,810 shares. West said there are up to 329,190 shares remaining to be repurchased in the program authorized in December 2015.