WuXi PharmaTech Announces Third Quarter 20...(e same period of 2006 primarily due to a...),Health

Research manufacturing gross margin improved significantly from 12.2% of the third quarter 2006 to 42.4% of the third quarter of 2007 as we started to achieve economy of scale as more and larger research manufacturing projects were carried out in 2007 compared to 2006.

Operating Expenses.

Operating expenses increased 38.1% to $8.5 million in the third quarter of 2007 from $6.2 million in the third quarter of 2006. The increase of these expenses was a result of the business growth. However, operating expenses as a percentage of total net revenues decreased to 25.0% in the third quarter of 2007 from 32.1% in the third quarter of 2006 as a result of cost efficiency.

Share-Based Compensation Expenses.

The Company's share-based compensation expenses, which were allocated to related expense line items, decreased from $2.5 million in the third quarter of 2006 to $1.5 million in the third quarter of 2007.

Net Income.

Net income increased by 205.4% to $8.6 million for the third quarter of 2007 from $2.8 million for the third quarter of 2006. Net profit margin increased to 25.4% in the third quarter of 2007 from 14.8% in the third quarter of 2006. Non-GAAP net income excluding share-based compensation expenses for the third quarter of 2007 increased by 90.2% to $10.1 million, compared to the non-GAAP net income of $5.3 million from third quarter of 2006. Diluted earnings per ADS was $0.12 and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) was $0.15 for the third quarter of 2007.

Conference Call

Following the earnings announcement, WuXi PharmaTech's senior management will host a conference call at 8:00 am (Eastern) / 5:00 am (Pacific) / 9:00 pm (Beijing/Hong Kong) on Tuesday, November 13, 2007 to discuss its
'/>"/>