WuXi PharmaTech Announces First Quarter 20...(l of ourbusiness units and support funct...)

"As the pharmaceutical, biotechnology and medical device industries continue to embrace outsourcing as a strategic option, our broad and unique global service platform positions us to capitalize on this trend and achieve our strategic and financial goals."

First Quarter 2008 Unaudited Financial Results

Net Revenues. Net revenues increased 68.7% to $57.1 million in the first quarter 2008 from $33.8 million in the first quarter 2007. This increase was primarily driven by the strong organic growth and the addition of US-based services following the close of the AppTec Laboratory Services, Inc. acquisition on January 31, 2008. During the two-month post-acquisition period, our US-based services contributed $11.0 million for the first quarter 2008.

Net revenues from laboratory services increased 77.4% to $38.5 million in the first quarter 2008 from $21.7 million in the first quarter 2007, driven by a growing demand for our core discovery chemistry and process research services, and testing services from the AppTec acquisition. Net revenues from manufacturing services increased by 53.3% to $18.6 million in the first quarter 2008 from $12.1 million in the first quarter 2007, primarily due to an increase in the number and scope of projects.

Gross margins. Overall gross margin was 42.5% in the first quarter 2008. Our laboratory services margin was 49.2% and manufacturing margin was 28.7% in the first quarter 2008. While our laboratory services margin remained robust, the manufacturing services margin was affected by the low utilization in our biologics manufacturing facility. Looking forward, we expect the utilization rate to improve in later quarters.

Operating Expenses. Operating expenses increased 28.3% to $12.6 million in the first quarter 2008 from $9.8 million in
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