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WuXi PharmaTech Announces Third-Quarter 2010 Results
Date:11/9/2010

 GAAP net income grew by 209% year over year, driven by this strong revenue growth and receipt of a $30 million termination fee relating to the proposed merger transaction with Charles River.  Non-GAAP net income grew year over year by 27%. This strong performance leads us once again to increase our net revenue and operating income guidance for 2010.

"Strong trends for outsourcing of pharmaceutical discovery services are continuing," Dr. Li continued.  "As the leading China-based pharmaceutical R&D services company, WuXi is well-positioned to benefit from these trends.  We continue to make substantial progress in building a comprehensive platform of discovery and preclinical R&D services that any pharmaceutical or biotech company can use to discover and develop new drugs efficiently and cost-effectively.

"As examples of that progress, we recently began operations in two newly built laboratories in Shanghai providing in-vivo pharmacology, DMPK, and discovery chemistry services.  We made a decision to establish a new laboratory in the city of Wuhan that will house laboratory chemistry operations to tap into the talent pool and to leverage lower costs in central China.  Our toxicology facility in Suzhou has been certified by both the OECD and the China State Food and Drug Administration to provide GLP general toxicology and genetic toxicity studies.  We are also planning to build a pilot-scale GMP manufacturing facility in the city of WuXi to produce biological products for preclinical and clinical trials.  We expect these expansion initiatives to drive continued revenue growth in future years," Dr. Li concluded.

GAAP ResultsThird-quarter 2010 net revenues increased 20% year over year to $83.8 million due to 19% growth in Laboratory Services net revenues and 23% growth in Manufacturing Services net revenues.  Laboratory Services net revenues in third-quarter 2010 benefited from stronger deman
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SOURCE WuXi PharmaTech (Cayman) Inc
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