First quarter organic revenue growth of 15.3% was driven by broad-based demand across all segments, particularly High-Value Product (HVP) components.
HVP components grew 23% organically, fueled by significant GLP-1 demand and high-teens growth in non-GLP-1 biologics and biosimilars.
Operational excellence initiatives in Europe, including accelerated onboarding and knowledge transfer, successfully increased production throughput to meet demand outstripping supply.
The Biologics business delivered 26% organic growth, benefiting from high win rates on new launches and easing regulations for biosimilars.
Annex 1 regulatory compliance is driving a multi-year shift from standard products to HVP components, with the combination of Annex 1 and HVP conversion expected to contribute 200 basis points to 2026 growth.
West Vantage (Contract Manufacturing) is pivoting toward drug handling, which management describes as more profitable and less capital-intensive than legacy manufacturing.
Margin expansion of 350 basis points was primarily attributed to favorable product mix and price contributions, offsetting plant ramp-up costs.
Full-year organic revenue growth guidance increased to 7% to 9%, reflecting improved demand visibility for both GLP-1 and non-GLP-1 markets.
Adjusted EPS guidance raised to $8.40 to $8.75, assuming continued margin expansion from HVP mix shift in the second half of the year.
Management anticipates a $40 million revenue headwind in the second half of 2026 due to the planned exit of a legacy CGM contract.
The SmartDose transaction is expected to close mid-year, with organic growth rates adjusted to account for the $55 million in 2025 comparable revenue.
Rising oil and commodity prices are incorporated into the outlook, with a projected net impact of single-digit millions after mitigation efforts.
A new $1 billion share repurchase program was authorized, with $298 million already executed in the first quarter.
The new Dublin West Vantage site is fully operational, supporting high-volume injectable therapies for diabetes and obesity.
CEO Eric Green announced plans to retire, with a successor expected to be appointed in the second half of 2026.
Capital expenditure efficiency is a priority, with full-year spending maintained at $250 million to $275 million despite higher revenue targets.
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