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WuXi PharmaTech Announces Fourth-Quarter and Full-Year 2012 Results, Share Repurchase Program
Date:3/7/2013

spite of continuing margin pressure from labor inflation, we expect 6-9% diluted EPS growth as a result of this revenue growth, increased productivity, cost control, and a new authorization to purchase up to $100 million of our ADSs over the next 18-24 months.

"Our goal is to build an open-access technology platform of integrated services that will enable anyone and any company to discover and develop products to benefit patients," Dr. Li concluded.  "We are confident we can achieve this goal for several reasons.  An open-access platform is the most effective and efficient way to allow researchers to capitalize their knowledge and experience and help solve the problem of low productivity in the pharmaceutical industry.  Health care spending will continue to grow globally because the world's patients will demand, and be willing to pay for, high-quality medical products and a better quality of life.  And our operational strength in China is important to capitalize on the rising demand by a large and rapidly growing Chinese middle class for the same treatments prescribed for Western patients."

Fourth-Quarter GAAP ResultsFourth-quarter 2012 net revenues increased 15.8% year over year to $125.7 million.  Revenue growth in Laboratory Services of 18.6% was driven by our comprehensive and integrated discovery and development services.  Revenue growth of 4.0% in Manufacturing Services was driven by increased demand for clinical-trial materials in our research manufacturing business, which more than offset lower demand for advanced intermediates in our commercial manufacturing business. 

Fourth-quarter 2012 GAAP gross profit increased 14.6% year over year to $48.8 million due to 15.8% revenue growth, offset by lower gross margin.  Fourth-quarter 2012 GAAP gross margin decreased slightly year over year to 38.8% from 39.2%.  Gross margin in Laboratory Services increased year over year to 41.9% from 41.5% mainly
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SOURCE Wuxi PharmaTech Co. Ltd.
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