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WuXi PharmaTech Announces First-Quarter 2011 Results
Date:5/10/2011

of years of hard work in research manufacturing with revenue growth in our new commercial manufacturing business.

"In 2011, we will continue to invest and build a strong integrated drug R&D service platform to be the industry's alternative R&D engine to discover and develop new drugs for our customers. Among our major investment projects in 2011 are a new site in Wuhan for our chemistry business, a new GMP biologics manufacturing facility in WuXi, and continuing build-up of pharmacology models and biology capabilities. We also continue to expand our research manufacturing capacity and our API/drug product stability testing capacity and capability.

"WuXi has the right business model for long-term success," Dr. Li concluded. "Outsourcing of pharmaceutical R&D is increasing because it offers pharmaceutical and biotech companies greater operational flexibility. Offshore outsourcing to China gives them high-quality scientific expertise at reasonable prices. As the leading offshore outsourcing company in China, WuXi is well positioned to benefit from these trends."

GAAP ResultsFirst-quarter 2011 net revenues increased 16% year over year to $93.6 million due to 12% growth in Laboratory Services net revenues and 35% growth in Manufacturing Services net revenues. Revenue growth in Laboratory Services was solid, driven by our comprehensive and integrated discovery and development services. Manufacturing Services revenue growth was driven by the continued ramp-up of our large-scale commercial manufacturing business, as well as the robust demand for clinical-trial materials from our research manufacturing business.

First-quarter 2011 GAAP gross profit increased 14% year over year to $34.7 million due to solid revenue growth in Laboratory Services and both strong revenue growth and gross-margin improvement in Manufacturing Services. First-quarter 2011 GAAP gross margin decreased slightly year over year to 37.1% from 37.7% mainly due to
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SOURCE WuXi PharmaTech (Cayman) Inc
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