West Pharma forecasts 2026 profit above estimates on strong demand for drug components

By Siddhi Mahatole

Feb 12 (Reuters) - West Pharmaceutical WST.N forecast annual profit above Wall Street estimates on Thursday, banking on higher demand for diabetes and obesity treatments that use its medical equipment.

The company expects demand for GLP‑1‑related drugs to grow in 2026, though at a "slower pace" than in 2025, CFO Bob McMahon said in a call with analysts.

GLP‑1 adoption would need to exceed 30% by 2030 to deliver 10% year‑on‑year growth, he added, a level "more aggressive" than the company's current expectations.

The surging use of newer diabetes and obesity drugs, including Novo Nordisk's NOVOb.CO Ozempic, Wegovy and Eli Lilly's LLY.N Mounjaro, is expected to benefit medical equipment makers such as West Pharma, which supplies components for injection pens used to administer these therapies.

Investors have been concerned that the strong launch of Novo's weight-loss pill Wegovy could impact the injectables market and take a toll on West Pharma's growth.

However, CEO Eric Green said the company believes "that both injectables and oral formats will continue to grow" and that any shift will happen over multiple years given the investments already made by its customers.

"The upcoming launch of injectable GLP-1 generics in Canada, China, India and Brazil represents incremental business for us," he added.

West Pharma expects 2026 adjusted profit per share of $7.85 to $8.20, above analysts' estimates of $7.78, according to the data compiled by LSEG.

Annual revenue is forecast between $3.22 billion and $3.28 billion, compared with estimates of $3.25 billion.

West Pharma also beat fourth-quarter expectations on strong demand for its proprietary products.

Adjusted profit per share came in at $2.04 for the quarter, above estimates of $1.83, while total revenue stood at $805 million, topping expectations of $794.38 million.