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WuXi PharmaTech Announces Fourth-Quarter and Full-Year 2009 Results
Date:3/8/2010

cquired intangible assets as a result of a lower balance for these assets following impairment charges relating to the AppTec acquisition taken in fourth-quarter 2008. In addition, GAAP gross margin benefited from a larger contribution from our higher-margin Laboratory Services business. Gross margin from Laboratory Services improved year over year to 41.9% from 39.2% due to lower amortization expenses for acquired intangible assets and improved profitability of newer downstream laboratory services, offset by increased expenses related to the ramp-up of the Suzhou toxicology facility. Partially offsetting this benefit, gross margin declined year over year in Manufacturing Services to 18.1% from 33.1% due primarily to unfavorable project mix and lower demand.

Full-year 2009 GAAP operating income was $52.1 million compared to an operating loss of $20.9 million in the prior year due primarily to the 13% increase in gross profit and a $60.5 million impairment charge relating to AppTec recorded in the prior year.

Full-year 2009 GAAP net income from continuing operations was $53.4 million compared to a loss of $15.0 million in the prior year due to the improvement in operating income and a favorable change in other income (expenses) net, offset by higher taxes. Higher taxes were mainly the result of tax benefits in the prior year related to impairment charges relating to AppTec. Other income (e
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SOURCE WuXi PharmaTech (Cayman) Inc.
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