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WuXi PharmaTech Announces Second-Quarter 2014 Results
Date:8/13/2014

and the favorable impact of a depreciated RMB.  We are using our free cash flow to reinvest in our business as we build new capabilities in manufacturing, biologics, genomics, cell therapy, sales and marketing, information technology, and other areas.  We also purchased $66 million of our stock in the second quarter.

Our strong second-quarter performance gives us confidence about our performance for the remainder of the year.  We expect to sustain strong revenue growth in the second half of 2014, as we capitalize on the growing late-stage and commercial product pipeline in small-molecule manufacturing, the ramp-up of our biologics manufacturing business, and investments in new businesses.  We raise our full-year 2014 revenue guidance range from the previous $660-$670 million to $665-$670 million and increase our guidance for full-year 2014 GAAP and non-GAAP diluted EPS.

"We remain committed to building the premier open-access R&D platform that enables anyone and any company to discover and develop innovative medicines to benefit the world's patients," Dr. Li concluded.

Second-Quarter 2014 GAAP Results Second-quarter 2014 net revenues increased 14.8% year over year to $163.4 million.  Revenue growth in Laboratory Services of 13.2% was driven by our comprehensive and integrated drug discovery and development services.  Revenue growth of 19.3% in Manufacturing Services was caused by strong demand in both research manufacturing and commercial manufacturing compared to the second quarter of 2013.

Second-quarter 2014 GAAP gross profit increased 18.9% year over year to $61.5 million due to 14.8% revenue growth and productivity improvement.  Gross margin increased year over year to 37.7% from 36.4% mainly due to improved productivity, the ramp-up of biologics services, and the favorable impact of a depreciated RMB versus the U.S. dollar, partially offset by increased labor costs in China.  Gross margin
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