West Pharmaceutical Services (WST) risk factors, FY2025 10-K

Other

1. 01Global economic conditions, including inflation and supply chain disruptions, could adversely affect our operations
2. 02Unauthorized access to our or our customers’ information and systems could negatively impact our business
3. 03We are a global company with significant revenues and earnings generated internationally, which exposes us to the impact of foreign currency fluctuations and tariffs, as well as political and economic risks
4. 04We are exposed to credit risk on accounts receivable and certain prepayments made in the normal course of business. This risk is heightened during periods when economic conditions worsen
5. 05Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business and financial condition

Industry Risks

1. 06If we are unable to provide comparative value advantages, timely fulfill customer orders, or resist pricing pressure, we will have to reduce our prices, which may reduce our profit margins
2. 07Consolidation in the pharmaceutical and healthcare industries could adversely affect our future revenues and operating income
3. 08The medical technology industry is very competitive and customer requests and/or new products in the marketplace could cause a reduction in demand

Business and Operational Risks

1. 09Disruption in our manufacturing facilities could have a material adverse effect on our ability to make and sell products and have a negative impact on our reputation, performance or financial condition
2. 10Our international sales and operations are subject to risks and uncertainties that vary by country and which could have a material adverse effect on our business and/or results of operations
3. 11Disruptions in the supply of key raw materials could adversely impact our operations
4. 12Raw material and energy prices have a significant impact on our profitability. If raw material and/or energy prices increase, and we cannot pass those price increases on to our customers, our profitability and financial condition may suffer
5. 13If we are not timely or successful in new-product innovation or the development and commercialization of proprietary multi-component systems, our future revenues and operating income could be adversely affected
6. 14In the normal course of business, we engage in discussions with third parties relating to possible divestitures, acquisitions and other strategic transactionsNew
7. 15Product defects could adversely affect the results of our operations
8. 16A loss of or inability to attract key personnel or highly skilled employees could disrupt our operations31% rewritten
9. 17The concentration of our customer base could adversely affect our financial condition and operating resultsNew
10. 18We may be unable to increase capacity or efficiency at our own manufacturing facilities, which could adversely affect our business, financial condition, and results of operations
11. 19Our results of operations and earnings may not meet guidance or expectations
12. 20No assurance can be given that we will continue to pay or declare dividends
13. 21If we fail to comply with our obligations under our distributorship or license agreements with Daikyo or the agreements are terminated early or not renewed, we could lose license rights and access to certain product and technology that are important to our business

Legal, Regulatory and Compliance Risks

1. 22We are subject to regulation by governments around the world, and if these regulations are not complied with, existing and future operations may be curtailed, and we could be subject to liability
2. 23Products that incorporate our technologies and medical devices that we produce are subject to regulations and extensive approval or clearance processes, which make the timing and success of new-product commercialization difficult to predict
3. 24Changes in the regulation of drug products and devices may increase competitive pressure and adversely affect our business
4. 25If we are not successful in protecting our intellectual property rights, our ability to compete may be affected
5. 26Significant developments in U.S. tax policies could have a material adverse effect on our business and/or results of operations52% rewritten
6. 27If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results, which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock priceNew
7. 28Changing climate, global climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance33% rewritten
8. 29Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws could subject us to penalties and other adverse consequences
9. 30Our operations must comply with environmental statutes and regulations, and any failure to comply could result in extensive costs which would harm our business32% rewritten
10. 31Changes in reimbursement practices of third-party payers or other cost containment measures, including changes to applicable laws and regulations, could affect the demand for our products and the prices at which they are sold
11. 32Our share price has been volatile and may fluctuate, and accordingly, the value of an investment in our common stock may also fluctuate24% rewritten