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

h in total net revenues will significantly accelerate from 7% in 2009 to 15-19% in 2010, driven by broad-based demand for our integrated services platform. China Laboratory Services is expected to achieve revenue growth of 13-16%. Manufacturing Services revenues are expected to grow more than 70% year over year in 2010, benefiting from a large delivery in the first quarter and from generally improving demand. Revenues in U.S.-based Laboratory Services are expected to grow at a mid-single-digit rate. These projections assume very small revenue contributions from the large-scale manufacturing and toxicology businesses in 2010.

"Operating income in 2010 is expected to achieve growth of up to 10 percent compared to 2009, driven by strong revenue growth and increased leverage of SG&A. An expected 2-5 percentage point gross margin decrease, primarily in the second half of 2010, is due to several factors, including an increase in labor and depreciation expenses, expenses from the ramp-up of the toxicology and large-scale GMP manufacturing operations, and pricing pressure. We are working to improve our projected 2010 gross margins. We expect the growth rate in operating income to accelerate in 2011, driven by continued strong revenue growth from China-based laboratory services, meaningful revenues from toxicology and large-scale manufacturing, and improving margins."



                          WUXI PHARMATECH (CAYMAN) INC.
                      UNAUDITED CONSOLIDATED BALANCE SHEETS
            (in thousands of U.S. dollars, except ordinary share,
                             ADS and par value data)

                                                   December 31,   December 31,
                                                       2009     
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SOURCE  WuXi PharmaTech (Cayman) Inc.
Copyright©2010 PR Newswire.
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