All right. Good morning, everybody. Thank you for joining us. I'm Luke Sergott. I cover Life Science Tools and Diagnostics here at Barclays. With me, I have the pleasure of Eric Green, CEO, Chair of the Board, and President of West Pharmaceutical. I think you guys have a presentation that I think is really great. With that, I'll turn it over to you to kick it off.
Great. Thank you. Appreciate the invitation here to the Barclays Healthcare Conference. Great venue. Thank you for the great list of one-on-ones today.
Appreciate that as well.
Great. Before we get started, I do wanna you can find it on the deck that's posted on our website. I'll also post it up here on the screen. Let's get started about West. In April 14th is a pretty major milestone for us at West. It'll be 100 years of our existence, and it's been true to the form around supporting patients across the globe.
When you think about the level of innovation, global expansion, and where we are today in this whole process for the last 100 years, what gets us excited at West is that it's not really just looking back at the past and celebrating what West has accomplished. The position we are in , is the criticality of healthcare going forward. It's a very exciting time right now for us globally around West. It's the past individuals that participate d with West, current , and also the future. Let's talk about our business. For those that don't know the story, we're very clear about our purpose. We're a purpose-driven company. It's about serving patients, and it's improving patient lives.
We are a critical manufacturer in healthcare. We did about 47 billion components last year. Each and every one of them, we feel, is high level of quality. The purpose drives us to make sure that each and every one goes out with thinking about a patient needs on that one product. We have a very clear strategy. We'll get into greater detail around execute, innovate, and grow. This has been our framework in our business for the last several years, and it continues to serve us well and continue to build support our customers globally. Simplistically, if you wanna break our business from a product point of view into three buckets, what does West do?
Well, West, we're a major manufacturer of vial containment and syringe components. We're involved with administration products. If you're in the hospital setting, you'll see our products used on a daily basis. Obviously, we have moved more in towards drug delivery and diagnostic devices. This gives us a very strong foothold when you think about being the leader in containment and delivery of injectable medicine. Very attractive space in healthcare. It's a fast-growing space of healthcare, and we're very well-positioned with a pretty broad portfolio to build service to our customers. The diversity of our portfolio, think about it from 3 different angles.
One is from the geographic point of view. Over 50% of our revenue is outside of the United States in the Americas. You think from a product category, not too many years ago, I would sit here and talk about 30% or 40%, now 60%+ of our business is what we call high-value products. It's around components and delivery devices that we provide our products, that's one of the main thesis of the growth algorithm at West, which I'll talk further. What's also very exciting is that our participation across all the different categories of biologics, generics, and pharma continues to be very strong.
Biologics is over 40% of our total enterprise revenue today, with about 17% in contract manufacturing. 2022 was a significant year for us. There's a lot that we have accomplished. One, over 47 billion components we delivered to our customers across the globe. Two is we expanded our product portfolio in many different ways. Most notable is that we're moving from a components to a system approach, the partnership with Corning gives us technology and capabilities that we did not have in our portfolio that we'll be able to expand on. We added new products to the portfolio and expanded lines around SmartDose and Crystal Zenith.
It's also important to note that we continue to expand capacity. You think about investing capital into the enterprise, we're best to redeploy the cash that we generate back into the organic growth story that we have at West. Significant capital expansion is going across the whole global network. Lastly, it's important for us to continue to show up in the communities where we live and work. We truly believe it's part of the DNA of West. It started back with our founder, Herman O. West, we continue to dedicate time and resources to support our local communities, which also drives our ESG strategy, which is not a initiative.
It's built into who we are, into our framework as a business. We talk about market-led. What does that mean? Market-led is really think about from a customer and a commercial perspective. It's identifying what are the unique value propositions we need , to continue to bring to the table , to expand our portfolio and capabilities that gives us differentiation and helps our customers deliver those critical components of drug molecules to patients across the globe. It also informs our R&D and our technical area of our business to how do we broaden our portfolio to be more effective versus inwards out.
It's out in concept. This market-led journey has allowed us to globalize our operations to really level load and be more effective to leverage the assets we have across the globe. When I think about starting with the first part of this is around the market-led approach on the commercial side. We have a very healthy participation in all areas. As you know, in the injectable space, it's roughly around a low single-digit volume growth. The fastest growth of the injectable space is around biologics, and our participation rate in biologics is extremely high. As you think about , whether it's the innovative biologic or biosimilar, we view that as consistent. Our value proposition is very similar.
As you think about our participation in biologics and what has that resulted is that in the last five years, we've gone from below 20% to over 40% of our revenues are generated by the biologic space. If you think about the number of BLAs in the pipeline and our participation in the pipeline as it comes out to be commercial, we're in a very strong position to continue to have accelerated growth in the top line of our business. We're also driving what we call high-value product portfolio, and it's taking customers on a journey from the lower bottom section of the chart all the way to the upper right.
As we think about new drugs and biologics , and some other unique molecules and small molecule areas, we're discussing with our customers around NovaPure. We're seeing the market with around NovaPure, the higher end of the trajectory of this portfolio. We're also now getting involved with devices. These devices, we have four in the last several years, and we have now wearables, four approved FDA combination devices with wearables, which is exciting as you think about the smart shift between IV to SubQ. We're in a very good position to support that transition and support our customers and ultimately the experience of the patient.
Lead by the science. I mean, think about where we just opened up a new R&D facility last couple of weeks ago in Pennsylvania. What's exciting about that facility, it's really driving more material sciences and the drug interaction with materials, allowing us to identify what is the next generation of portfolio continuously to drive value to our customers. We do look at the portfolio expansion. We're continuously looking at new technologies that we're scouting for, and we will bring them in, as we've done in the past several years. We're also looking at product lifecycle management.
Those are the key levers and drivers we're looking at within R&D and delivering as we go forward. One area of growth, when we talk about top-line growth, is our algorithm for the top line is 7%-9% organic growth. When you think about the drivers of that, obviously, biologics is the fastest area of growth in that area. It's being led by a high-value product portfolio. COVID had an impact on our business. I believe we as an organization responded significantly in order to help with the pandemic, provided critical components used to be able to deliver vaccines across the globe.
West had a very important role in that process. If we take that out of the equation, the organic growth of the base business, which you'll find here, since 2020 has been growing in the double digits. That's taking COVID out of the equation. Most of that growth is around high-value products. What you'll find is that during that period of time, there was a margin expansion that naturally through mix shift that occurred. As we think about, specifically, we mentioned on the February call that, COVID was about $388 million of our business in 2022, and we estimate at this point in time, about $80 million-$85 million, will be COVID.
You can see a headwind of about $300 million. We're projecting growth in 2023, organic growth in 2023. A number of initiatives that we've launched, a number of the demand pull effect of the non-COVID business, as you see here, continues to grow quite well. We anticipate that continue on. From a margin perspective, so the growth thesis of West is 7%-9% organic growth on the top line and about 100 basis points operating margin expansion year-over-year. Again, taking COVID out of the equation, in 2019, our operating margin is roughly about 16%, and this year we're targeting between 23%-24%, implied 24% operating margin.
That's significant growth without COVID as in, taken out of the equation. Why is it important to, when you think about the margin expansion, the majority of that is mix shift due to the high-value products. Think about the number of products we produce every year, 47 billion components. Roughly about 20% of that is high-value products. That equates to over 60% of our revenues associated to high-value products. Every year, you can assume, if you look at the model, it's roughly about 100 basis points expansion on units of high-value products due to new drug launches, conversions, growth in the biologic space in particular.
That gives us about 100 basis points of units expansion on that $47 billion. When you think about from the how that translate into top line revenue, you see here clearly it's accelerated from the mid-40% to mid-60% over that same time period. As we go forward and continue to see the market, particularly around the fastest areas of injectable medicine, where we believe that we'll continue to able to leverage our organization with a mix shift and other initiatives, like automation, pricing, it gives us continued expansion on margin here at West. When we globalized our operations, we're now able to be more effective to level-load the demand.
Today, we have 26 manufacturing sites across the globe, five of which are heavily focused on high-value products and processes. What we have effectively have done is drive more efficiencies through our global operations. We have more opportunities ahead of us. We're, I'd say, early on in the automation journey. We're excited that this is an enabler for us to be able to support our customers and mitigate risk of their supply chain and continue to appreciate the high participation rate in all different areas of biologics, generics, and pharma. Talking about expansion, couple weeks ago, I went to our Kinston, North Carolina facility.
We actually had a tour of investors that came through, and we are literally almost doubling that site. The HPP plunger expansion is on its way to be completed in the second quarter, the validation, and we'll be able to support the demand that already exists with plungers around HPP, particularly around NovaPure. Also, HPP processing capabilities will be done later in the year. We have a number of key initiatives that are underway to be able to invest on the organic growth here at West, and across the span of the globe.
What you'll find, though, most of it's concentrated, one, around high-value products, and two, around these five sites that we have designated for HPP globally. Thinking about the use of cash. Since 2016, we deployed over almost $2.5 billion of cash into various sectors of our business. The number one area that we have, about 50% of it, we focused around the capital expenditures, expansion. You think about our CapEx of a $1.2 billion. In the last few years, what you're seeing is that about 70% of our annual CapEx is being deployed for growth initiatives, while the other 30% is around maintenance, it's around IT infrastructure.
Historically, before a few years ago, we were about 50/50, and it was heavily weighted towards higher growth. The guidance we gave for 2023 was roughly around $350 million. Again, around 70% of that is growth orientation. The other area of investment of that cash has been around inorganic to complement our organic growth story. We have done a couple of transactions that have allowed us to get license, equity, and further enhance partnerships. One in particular this year is gonna be the 50th year of partnership with Daikyo Seiko in Japan, a phenomenal company that we've been coexisting for a long time and are able to leverage our technologies of both firms to really truly differentiate the market.
Obviously, when you think about giving back to shareholders, quarterly dividend, and then the share repurchase. In the last five years, we've been focused on share count neutrality. Basically, keeping the share count neutral. As you can see here, we have succeeded over that time period. One area that I think the organization has done a great job is this transition into more free cash flow in the organization in cash. As of end of 2022, our net cash was close to $700 million. This gives us very strong footing as we think about the growth here at West.
Last month, we did approve $1 billion share repurchase program, which is obviously larger than we've done historically. We do not have a specified expiration date, but one of the key themes there is that we are gonna continue to keep the share count neutral and then deploy at appropriate times additional repurchase throughout the next several multiple quarters. Again, there's no expiration date on that. As I've said in the beginning, we're driven by purpose. One of the areas around ESG is, you think about our strategies, these initiatives are built into the fabric of our organization.
These are not initiatives off to the side that end up they're managing. It's part of who we are, and it's been part of us for a very long time. We have six key priorities for 2023 and beyond. These are pretty typical, I think, you'd think with a lot of firms, and we're making great progress. In many cases, we're actually ahead of the programs. What's exciting , is that not only we will have a publication coming out shortly, so you can look for our corporate responsibility report that will be published 2022, in the next several weeks.
What's exciting at West is that this is a continuous process improvement mindset, and we're kind of continuously looking at ways to make an impact. One area I'm extremely proud of is just an example is our safety program, where we have really literally cut it in half twice in the last five years, which provides a better environment for all of us and a safe environment to work across the globe here at West. To conclude on the discussion here, really, West is in a very strong critical position in healthcare. Our participation rate on these new drug molecules remains very high. We're excited about the future of the injectable medicines space, particularly around biologics.
We continue to leverage our global operations to truly differentiate and to be able to meet our customers' demand and needs, not just in the near term, but more long term. We're investing in new technologies and new capabilities that'll give us another look at from components to systems, as an example, and I'm really excited about that initiative, to really create another wave of high-value products for West. Also the pull effect that we're having in the wearable space and injectable medicine space, that we believe we can be a major player from the IV to SubQ phenomena that is going to occur and support patients again across the globe. We're a very strong balance sheet.
We have strong opportunities to continue to invest in our business, but also look at all adjacencies that will continue to stay focused on each and every component that we produce , has a patient name on it. Thank you for your time, and I appreciate your interest in West, and we're available to take any questions. Thank you.
Very good.
Thanks.
Any questions?
Yeah, we're very, very high in that area of roughly 90%+ in biologics. We also, just to be very clear in our communication, classify biosimilars in the same category because the value proposition is the same, similar products, similar economics. We're very strong in the biologic space.
You had the slide up there on the high-value products. Talk about what you guys have from cell and gene therapy perspective, 'cause it's a different delivery model versus anything that's been out there, and so how you see that ultimately shaking out and where you guys are positioned?
Yeah. Currently,, we do participate in cell and gene therapy. We are positioning our Crystal Zenith portfolio. Obviously, NovaPure in addition to that. We are participating on all the delivery of those products. The volumes are not anywhere near other types of therapy classes, but we are participating in that area. We are continuously also looking at ways to expand that capability to go beyond just containment. That's where we currently are. We are participating in every CGT.
Okay. Okay. Thank you very much.
Thank you.