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WuXi PharmaTech Announces Second-Quarter 2010 Results
Date:8/1/2010

ance

Management Comment

"WuXi had a strong second quarter, with results in line with, or at the upper end of ranges for, results provided in our announcement on July 15, 2010," said Dr. Ge Li. "We achieved 21% year-over-year revenue growth. That revenue growth was broad-based, with each of our businesses contributing at least 18% year-over-year revenue growth. Gross margin and operating margin were also strong. We met or exceeded our projections for second-quarter 2010 performance. We are increasing our guidance for operating income for full-year 2010 and reconfirming the remainder of the increased full-year 2010 financial guidance that we announced on July 15.

"On July 29, WuXi announced that we and Charles River Laboratories would not proceed with our planned combination due to insufficient support among Charles River shareholders," Dr. Li continued. "We received a breakup fee of $30 million, which we will record in the third quarter and which more than offsets our transaction-related expenses. This outcome will have no effect on our strategy or operations, and we remain committed to our goal of building a broad, integrated platform of R&D services. This platform will help our customers to improve the success of discovery and shorten the development time of new products to meet unmet patient needs. This open-access service platform will allow customers to use the entire portfolio of our services or any portion of it.

"WuXi is achieving strong current financial performance while making the investments to continuously build capabilities and capacities in our core Laboratory Services business and our new large-scale ma
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SOURCE WuXi PharmaTech (Cayman) Inc.
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