Generation highlights West Pharmaceutical Services in Q2 investor letter

Generation Investment Management highlighted West Pharmaceutical Services as a potential long-term investment opportunity in its second-quarter 2026 Global Equity Strategy investor letter.

The strategy reportedly managed US$14.5 billion as at 30 June 2026. Generation’s letter focused on West’s containment and delivery systems for injectable drugs and other healthcare products, including its inter-coated packaging technology.

According to the letter, West’s high-value products account for about three-quarters of their market and the company supplies more than 90% of newly approved drugs. Generation also said West held a near-100% share of packaging for GLP-1 drugs. Those figures are claims attributed to the letter and were not independently verified in the supplied material.

The letter linked the technology’s development to tighter drug-packaging regulations after contamination involving rubber stoppers and erythropoietin in the early 2000s. Generation said the inter-coated products, which place a layer between the drug and rubber, had become an industry standard.

West reportedly closed at US$339.97 on 4 September, giving it a market capitalisation of US$23.93 billion. Fifty hedge-fund portfolios reportedly held the stock at the end of the second quarter, unchanged from the previous quarter.

Generation’s assessment comes as it argues that quality, sustainable companies have been underperforming while market returns remain concentrated in a small number of AI-linked stocks. The letter’s investment-opportunity framing reflects Generation’s view and does not establish that the manager directly held West shares.