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

nufacturing and toxicology businesses. With a sound strategy, market-leading position, and talented people, our future remains bright," Dr. Li concluded.

GAAP Results

Second-quarter 2010 net revenues increased 21% year over year to $81.0 million due to 18% growth in Laboratory Services net revenues and 55% growth in Manufacturing Services net revenues. Revenue growth in Laboratory Services was strong in both discovery chemistry and downstream services and in both China and the United States. Revenue growth in Manufacturing Services was driven by increasing demand for clinical-trial supplies.

Second-quarter 2010 GAAP gross profit increased 23% year over year to $33.2 million due to strong contributions from both Laboratory Services and Manufacturing Services, driven by revenue growth and gross-margin improvement in both segments. Second-quarter 2010 GAAP gross margin improved year over year due to improved project mix in both Laboratory Services and Manufacturing Services and benefits of Lean Six Sigma programs undertaken in the United States. This gross margin improvement occurred in spite of a larger contribution from the relatively lower-margin Manufacturing Services business and increased expenses related to the ramp-up of the Suzhou toxicology facility.

Second-quarter 2010 GAAP operating income grew 18% year over year to $16.1 million, driven by the 23% increase in gross profit and lower operating expenses driven by cost control, offset by $2.9 million of non-recurring deal costs relating to the previously proposed combination with Charles River Laboratories, mostly third-party professional service fees.


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SOURCE WuXi PharmaTech (Cayman) Inc.
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