Navigation Links
WuXi PharmaTech to Acquire AppTec Laboratory Services, Inc.
Date:1/3/2008

SHANGHAI, China, and ST. PAUL, Minn., Jan. 3 /Xinhua-PRNewswire/ -- WuXi PharmaTech (NYSE: WX), China's premier provider of pharmaceutical R&D outsourcing services, has signed a definitive agreement to acquire US-based AppTec Laboratory Services, Inc. (AppTec). The acquisition of AppTec allows WuXi PharmaTech to immediately obtain biologics capabilities and expertise, gain a significant U.S. operational footprint, and expand its customer base and addressable market size. The combined business operations of WuXi PharmaTech and AppTec in both the U.S. and China will enable WuXi PharmaTech to provide a full service suite of outsourced chemistry and biology services to global pharmaceutical, biotechnology and medical device clients. The transaction consideration totals approximately $151 million with the assumption of AppTec debt totaling approximately $11.7 million.

AppTec is a trusted quality service provider for the biopharmaceutical and medical device industries, offering testing, contract research and development, and biologics cGMP manufacturing services from a highly differentiated, fully integrated service platform. Along with state-of-the-art FDA registered facilities located in Philadelphia, St. Paul and Atlanta, AppTec brings established customer relationships with many leading pharmaceutical, biotechnology and medical device companies in the U.S. and around the world. AppTec's full year 2007 revenue is expected to be in the range of $70 million to $72 million. Since 2004, and including the expected revenue for 2007, AppTec will have achieved a compounded annual revenue growth rate of approximately 46%.

Dr. Ge Li, Chairman and Chief Executive Officer of WuXi PharmaTech, commented, "We are very excited to announce the combination of WuXi PharmaTech and AppTec Laboratory Services, an important milestone in realizing our vision of becoming the global R&D outsourcing leader. WuXi's chemistry services will be complemented by AppTec's biologics testing and manufacturing capabilities to create a fully integrated service platform, from which we will be able to provide more value-added services to our customers. With an expanded geographic footprint, and a broader and deeper scope of services, we are well positioned to drive growth and continue to increase shareholder value."

Dr. Bonita L. Baskin, Chief Executive Officer of AppTec, said, "Combining these two companies creates a unique single source platform that has the ability to transform the outsourced R&D model globally. I, along with the AppTec team, share with Dr. Li our excitement over the prospects of this combination."

The transaction is expected to be immediately accretive to WuXi PharmaTech's earnings per share, excluding the amortization of acquired intangible assets and one-time charges related to the acquisition.

The transaction has been approved by the AppTec and WuXi PharmaTech boards of directors and AppTec's shareholders, and is expected to close, subject to regulatory and other customary closing conditions, in the first quarter of 2008. No approval by WuXi PharmaTech's shareholders is required.

Conference Call

WuXi PharmaTech will host a conference call and Q&A session at 8:00 am (Eastern) / 5:00 am (Pacific) / 9:00 pm (Beijing/Hong Kong) on January 4, 2008 to provide details of the transaction. The conference call may be accessed by calling (US) +1-888-262-8797 / (UK) +0-800-051-7166 / (HK) +800-965-503 / (China, Northern Region) +86-10-800-714-0970 / (China, Southern Region) +86- 10-800-140-0945, Passcode: 1227949.

A live webcast of the conference call and replay will be available on the investor relations page of WuXi PharmaTech's website at http://www.wuxipharmatech.com .

About WuXi PharmaTech

Founded in 2000, Shanghai-based WuXi PharmaTech is the leading China-based pharmaceutical and biotechnology R&D outsourcing company. As a research- driven and customer-focused company, WuXi PharmaTech provides pharmaceutical and biotechnology companies a broad and integrated portfolio of laboratory and research manufacturing services throughout the drug discovery and development process. WuXi PharmaTech's services are designed to assist its global partners in shortening the cycle and lowering the cost of drug discovery and development by providing cost-effective and efficient outsourcing solutions that save its customers both time and money. Its operations are grouped into two segments: laboratory services, consisting of discovery chemistry, service biology, analytical, pharmaceutical development and process development services, and research manufacturing, focusing on manufacturing of advanced intermediates and active pharmaceutical ingredients for R&D use. In 2007, its 80 customers included nine of the world's top ten pharmaceutical companies by revenue. For more information, please visit: http://www.wuxipharmatech.com .

About AppTec

With over 20 years experience, AppTec is a trusted leader in providing high-value testing, contract R&D, and cGMP manufacturing services for the biopharmaceutical and medical device industries. AppTec offers a fully integrated approach for the development of highly regulated products such as biopharmaceuticals, traditional pharmaceuticals, cellular therapeutics, medical devices, and combination and tissue-based products. Possessing the full set of competencies, facilities, and key personnel necessary, AppTec helps clients take their products efficiently and cost-effectively through the product development process. The company has three state-of-the art facilities, which are located in St. Paul, MN; Philadelphia, PA; and Atlanta, GA. All AppTec facilities are FDA registered and GLP/GMP compliant. Additional qualifications include ISO certification, AAALAC accreditation, FDA registration for HCT/Ps, and accreditation by the American Association of Tissue Banks.

Cautionary Note Regarding Forward-Looking Statements

Statements in this release contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements related to the proposed AppTec transaction include the anticipated timing and closing of the transaction, related benefits of the proposed transaction and the anticipated financial impact of the proposed transaction on our operating results. These statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. The AppTec transaction may not close when anticipated or at all, we may not realize the anticipated benefits of the transaction and the transaction may not be accretive. In addition to risks related to the integration of our and the AppTec business, our business is subject to a number of risks and uncertainties that could impact our business and operating results including our limited operating history; our reliance on a limited number of customers to continue to account for a high percentage of our revenues; risk of payment failure by any of its large customers, which could significantly harm our cash flows and profitability; dependency upon the continued service of our senior management and key scientific personnel and ability to retain our existing customers or expand our customer base. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 11 of our prospectus filed with the Securities and Exchange Commission on August 9, 2007, and available on the Securities and Exchange Commission's website at http://www.sec.gov. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, WuXi PharmaTech undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. Such information speaks only as of the date of this release.

For more information, please contact:

Investor Contact:

Dr. Hai Mi

Vice President, Corporate Communications

WuXi PharmaTech (Cayman) Inc.

Tel: +86-21-5046-3726

Email: ir@pharmatechs.com

Investor Relations (US):

Mahmoud Siddig

Director

Taylor Rafferty

Tel: +1-212-889-4350

Email: Pharmatechs@taylor-rafferty.com

Investor Relations (HK):

Ruby Yim

Managing Director

Taylor Rafferty

Tel: +852-3196-3712

Email: Pharmatechs@taylor-rafferty.com

Media Contact:

John Dooley

Taylor Rafferty

Tel: +1-212-889-4350

Email: Pharmatechs@taylor-rafferty.com


'/>"/>
SOURCE WuXi PharmaTech
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. WuXi PharmaTech (NYSE: WX) Promotes Edward Hu to COO
2. Quest PharmaTech to Receive $3,000,000 to Develop Oncology Products Based on its SonoLight Technology
3. Massachusetts Governor Deval L. Patrick Pays Visit to WuXi PharmaTech
4. WuXi PharmaTech (NYSE: WX) Ranked the 28th of Deloitte Technology Fast 50 China
5. WuXi PharmaTech (NYSE: WX) Wins Both Deloitte Technology Fast 50 China and Deloitte Technology Fast 500 Asia
6. WuXi PharmaTech Announces Second Quarter 2007 Results
7. WuXi PharmaTech Schedules 2007 Second Quarter Earnings Release on Thursday, September 6, 2007
8. Inverness Medical Innovations Acquires ParadigmHealth
9. LeMaitre Vascular Acquires Biomateriali, a Vascular Graft Manufacturer
10. Thermo Fisher Scientific Acquires Leading Chromatography Consumables Provider, La-Pha-Pack
11. Raptor Pharmaceuticals Acquires Orphan Clinical Program
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/23/2016)... Oxitec CEO Hadyn Parry will testify ... before the United States House Committee on Science, Space and ... controlling the spread of the Aedes aegypti mosquito, ... (Logo: http://photos.prnewswire.com/prnh/20150630/227348 ) Oxitec has pioneered ... in Brazil , Panama ...
(Date:5/22/2016)... , ... May 22, 2016 , ... Doctors in Rome ... combating the asbestos cancer, malignant mesothelioma. Surviving Mesothelioma has just posted an article on ... the University of Rome’s Department of Clinical Sciences and Translational Medicine evaluated more than ...
(Date:5/20/2016)... ... 20, 2016 , ... The recent recall by Costco and Trader Joes of ... on May 12, 2016(1), demonstrates the need for faster and more cost effective bio-threat ... PathSensors, Inc. , PathSensor’s latest solution uses a biosensor technology called ...
(Date:5/19/2016)... ... May 19, 2016 , ... KCAS Bioanalytical and Biomarker ... as Director, Large Molecule & Biomarker Bioanalysis. , Dr. Siddiqui has more than ... studies for preclinical and clinical safety programs. “We’ve seen significant demand for, and ...
Breaking Biology Technology:
(Date:3/18/2016)... 18, 2016 --> ... ICT, Manned & Unmanned Vehicles, Physical infrastructure and Perimeter Surveillance ... in the border security market and the continuing migration crisis ... Europe has led visiongain to publish this ... --> defence & security companies in the ...
(Date:3/14/2016)... March 14, 2016 NXTD ) ("NXT-ID" ... commerce market, announces the airing of a new series of ... week of March 21 st .  The commercials will air ... popular Squawk on the Street show. --> NXTD ... growing mobile commerce market, announces the airing of a new ...
(Date:3/10/2016)... 10, 2016 --> ... report "Identity and Access Management Market by Component (Provisioning, ... Governance), by Organization Size, by Deployment, by Vertical, and ... MarketsandMarkets, The market is estimated to grow from USD ... 2020, at a Compound Annual Growth Rate (CAGR) of ...
Breaking Biology News(10 mins):