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

E, formulation, and bio-analytical services. Growth was achieved under both full-time-equivalent and fee-for-service contracts.

Fourth-quarter 2009 GAAP gross profit increased 44% year over year to $29.2 million, mainly due to an increased contribution from Laboratory Services, driven by both revenue growth and gross-margin improvement, offset by a decline in the gross-profit contribution of Manufacturing Services from lower revenues and lower gross margin. Fourth-quarter 2009 GAAP gross margin improved year over year to 39.6% from 31.5%, mainly due to lower amortization expenses for acquired intangible assets as a result of a lower balance for these assets following impairment charges relating to AppTec taken in fourth-quarter 2008. GAAP gross margin also benefited from a larger contribution from our higher-margin Laboratory Services business. Gross margin from Laboratory Services improved year over year to 41.7% from 32.8% 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 16.7% from 20.5% due primarily to unfavorable project mix and lower demand.

Fourth-quarter 2009 GAAP operating income was $13.6 million compared to an operating loss of $56.7 million in the prior-year period due
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SOURCE WuXi PharmaTech (Cayman) Inc.
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