Oct 23 (Reuters) - Medical equipment maker West Pharmaceutical WST.N raised its annual profit forecast on Thursday, after posting better-than-expected results for the third quarter, banking on strong demand for its components used in GLP-1 weight-loss and diabetes drugs.
The company's drug components business, which accounts for 47% of total revenue, benefited from higher demand during the reported quarter as manufacturers sought critical packaging and delivery components used throughout the injectable drug production process.
West makes vital medical components - including stoppers, plungers and delivery systems - to ensure the safe containment and administration of injectable medicines such as vaccines and biologic therapies.
The company's most notable customers include pharma majors Eli Lilly LLY.N and Novo Nordisk NOVOb.CO, who incorporate West's components into their blockbuster injectable treatments, particularly in weight-loss and diabetes therapies.
The company previously flagged a $15 million to $20 million impact from tariffs and said it is deploying every possible lever to mitigate it.
West's third-quarter sales rose 7.7% to $804.6 million from a year ago, beating analysts' average estimate of $787.9 million, according to data compiled by LSEG.
The company posted quarterly profit of $1.96 per share on an adjusted basis for the quarter ended September 30, above expectations of $1.68 apiece.
West Pharma expects 2025 adjusted profit between $7.06 and $7.11 per share, up from a prior view of $6.65 and $6.85 per share.
It also raised its annual sales forecast to a range of $3.06 billion to $3.07 billion, from a prior forecast of $3.04 billion to $3.06 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber)
((Padmanabhan.Ananthan@thomsonreuters.com;))