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:6/23/2016)... 2016 /PRNewswire/ - FACIT has announced the creation ... biotechnology company, Propellon Therapeutics Inc. ("Propellon" or "the ... a portfolio of first-in-class WDR5 inhibitors for the ... WDR5 represent an exciting class of therapies, possessing ... for cancer patients. Substantial advances have been achieved ...
(Date:6/23/2016)... ... June 23, 2016 , ... Charm Sciences, Inc. is ... has received AOAC Research Institute approval 061601. , “This is another AOAC-RI approval ... Bob Salter, Vice President of Regulatory and Industrial Affairs. “The Peel Plate methods ...
(Date:6/23/2016)... --  EpiBiome , a precision microbiome engineering company, today ... from Silicon Valley Bank (SVB). The financing will allow ... drug development efforts, as well as purchase additional lab ... been an incredible strategic partner to us – one ... provide," said Dr. Aeron Tynes Hammack , EpiBiome,s ...
(Date:6/23/2016)... (PRWEB) , ... June 23, 2016 , ... In a ... Hospital in Denmark detail how a patient who developed lymphedema after being treated for ... The results could change the paradigm for dealing with this debilitating, frequent side effect ...
Breaking Biology Technology:
(Date:5/12/2016)... May 12, 2016 WearablesResearch.com , a ... the overview results from the Q1 wave of its ... wave was consumers, receptivity to a program where they ... a health insurance company. "We were surprised ... says Michael LaColla , CEO of Troubadour Research, ...
(Date:4/28/2016)... 2016 First quarter 2016:   ... with the first quarter of 2015 The gross margin ... (loss: 18.8) and the operating margin was 40% (-13) ... Cash flow from operations was SEK 249.9 M (21.2) , ... unchanged, SEK 7,000-8,500 M. The operating margin for 2016 ...
(Date:4/15/2016)...  A new partnership announced today will help ... in a fraction of the time it takes ... life insurance policies to consumers without requiring inconvenient ... Diagnostics, rapid testing (A1C, Cotinine and HIV) and ... weight, pulse, BMI, and activity data) available at ...
Breaking Biology News(10 mins):