SHANGHAI, Nov. 10, 2011 /PRNewswire-Asia/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX), a leading research and development outsourcing company serving the pharmaceutical, biotechnology, and medical device industries, with operations in China and the United States, today announced its financial results for the third quarter of 2011.
Highlights
- Third-Quarter 2011 Net Revenues Increased 24.0% Year Over Year to $104.0 Million
- Manufacturing Services Net Revenues Grew 183.8% Year Over Year to $20.1 Million
- Laboratory Services Net Revenues Grew 9.2% Year Over Year to $83.9 Million
- China-Based Laboratory Services Net Revenues Increased 10.7% Year Over Year to $63.2 Million
- GAAP Operating Income Increased 15.8% Year Over Year to $22.2 Million
- Non-GAAP Operating Income Increased 10.1% Year Over Year to $24.9 Million
- GAAP Diluted Earnings Per ADS Declined 53.8% Year Over Year to 27 Cents Due to Inclusion in the Prior-Year Results of a Termination Fee Relating to the Proposed Transaction with Charles River Laboratories and an Increase in the Effective Tax Rate
- Non-GAAP Diluted Earnings Per ADS Increased 2.6% Year Over Year to 31 Cents Due to an Increase in the Effective Tax Rate
- WuXi Refines Its Full-Year 2011 Guidance
- Board Member Jeff Leng Elected to Audit Committee
Management Comment
“WuXi achieved another solid quarter, driven by particularly strong revenue performances in Manufacturing Services, integrated medicinal chemistry, DMPK/ADME, toxicology, formulation, and analytical and bioanalytical services,” said Dr. Ge Li, Chairman and Chief Executive Officer. “We exceeded our revenue guidance and met our operating-margin guidance for the quarter. We are on track to achieve full-year 2011 revenues of $402 to $406 million, GAAP operating margin of about 21%, and non-GAAP operating margin of about 24%.
“Global R&D outsourcing to China continues to increase going into 2012,” Dr. Li continued. “WuXi is well positioned to benefit from this outsourcing trend by offering our customers an integrated R&D services platform for cost-effective drug discovery and development.
“WuXi is building an alternative R&D engine for the life-sciences industry. This engine represents an integrated technology platform and service offerings that will enable anyone and any company to discover and develop medicines. China is rapidly becoming an important hub for pharmaceutical R&D, in part because of the rapid growth of the large Chinese pharmaceutical market itself. WuXi is positioned to continue to lead the Chinese life-sciences industry by building capabilities and capacities to serve our customers better.
“Our two recent acquisitions to expand our capabilities are examples of this strategy. The Abgent acquisition brings to WuXi biological research reagents for drug discovery and basic research. These product lines expand our service offering to our existing customers and to new customers in the life-sciences research community and tap into the rapidly growing Chinese life-sciences research market. The MedKey acquisition is an essential step in completing WuXi’s broad, integrated platform of pharmaceutical R&D services, with integrated capabilities ranging from molecule synthesis to testing in humans. MedKey provides WuXi with an existing China-based clinical development service capability and infrastructure, giving WuXi access into this important market segment faster than we could accomplish on our own.
“WuXi has also formed a corporate venture fund, capitalized at up to $50 million. This fund will invest in technologies and life-sciences companies to enhance our platform capabilities and to help great minds realize the potential of their technologies and intellectual property. Through the fund’s investments, WuXi expects to benefit from appreciation in value of the companies invested in and from access to these technologies and collaborations, including new revenue-generating opportunities.”
Dr. Li concluded, “I am pleased to announce that on November 8, the Board of Directors of WuXi PharmaTech elected board member Jeff Leng to the Audit Committee.”
GAAP Results
