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WuXi PharmaTech Announces Second Quarter 2011 Results
Date:8/10/2011

As the leading R&D outsourcing service company in China, WuXi is in a unique position to help our customers to discover and develop drugs for both global markets and the Chinese market."

GAAP ResultsSecond-quarter 2011 net revenues increased 24.8% year over year to $101.1 million mainly due to 148.7% growth in Manufacturing Services net revenues and 14.5% growth in China-based Laboratory Services revenues.  Revenue growth in Laboratory Services was driven by our comprehensive and integrated discovery and development services. Manufacturing Services revenue growth was driven by our large-scale commercial manufacturing business, as well as the robust demand for clinical-trial materials from our research manufacturing business.

Second-quarter 2011 GAAP gross profit increased 16.3% year over year to $38.6 million due to solid revenue growth in Laboratory Services and both strong revenue growth and gross-margin improvement in Manufacturing Services.  Second-quarter 2011 GAAP gross margin decreased year over year to 38.2% from 41.0%. Gross margin in Manufacturing Services, while lower than that in Laboratory Services, improved year over year to 31.1% from 21.3% due to strong revenue growth and increasing capacity utilization in our large-scale manufacturing facilities.  Gross margin in Laboratory Services decreased year over year to 40.1% from 43.3% due to higher labor costs, the negative impact from appreciation of the Chinese RMB relative to the U.S. dollar, and increased depreciation expenses from investments in new capabilities and capacity expansion.

Second-quarter 2011 GAAP operating income grew 33.7% year over year to $21.5 million due to the 16.3% increase in gross profit and relatively flat operating expenses. In the second quarter of 2010 operating expenses included $2.9 million of non-recurring deal costs relating to the previously proposed combination with Charles River Laboratories. Excluding the impact of these dea
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SOURCE WuXi PharmaTech (Cayman) Inc
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