SHANGHAI, August 11, 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 second quarter of 2011.
Highlights
* WuXi PharmaTech Quarterly Net Revenues Exceeded $100 Million for the First Time
* Second-Quarter 2011 Net Revenues Increased 24.8% Year Over Year to $101.1 Million
* Laboratory Services Net Revenues Grew 10.3% Year Over Year to $80.1 Million
* China-Based Laboratory Services Net Revenues Increased 14.5% Year Over Year to $60.3 Million
* Manufacturing Services Net Revenues Grew 148.7% Year Over Year to $21.0 Million
* GAAP Diluted Earnings Per ADS Grew 34.2% Year Over Year to 25 Cents
* Non-GAAP Diluted Earnings Per ADS Increased 9.3% Year Over Year to 29 Cents
Management Comment
"WuXi delivered strong revenue and income growth in the second quarter," said Dr. Ge Li, Chairman and Chief Executive Officer. "For the first time in our company's history we topped $100 million in quarterly net revenues. Total net revenues and GAAP diluted EPS grew 24.8% and 34.2%, respectively. At the same time, we continued to invest in new capabilities and capacity to better serve our customers and to sustain future growth.
"WuXi met or exceeded its financial guidance for the quarter. Revenues grew to $101.1 million, versus our guidance of $97-99 million. Net revenues in both Laboratory Services and Manufacturing Services exceeded our guidance. GAAP and non-GAAP operating margins were comparable to those in the first quarter, as we expected.
"We are particularly pleased with the strong performance of our Manufacturing Services business this year. A few years ago we chose to diversify, investing in building and equipping a new facility for large-scale commercial manufacturing as a natural extension of our capabilities in small-scale manufacturing of drugs for preclinical and clinical trials. We are now seeing a very strong return on this investment.
"We continue to expect 2011 to be a strong year for WuXi, with annual revenue growth of 20-22% in a highly competitive environment. We expect to achieve mid-teens annual revenue growth in the China-based Laboratory Services business. Manufacturing Services annual revenue is expected to grow 80-90% to approximately $70-74 million in 2011, versus $39 million in 2010 and $20 million in 2009.
"In 2011, we will continue to invest and build a strong integrated drug R&D service platform to be the industry's alternative R&D engine to discover and develop new drugs. Among our major investment projects in 2011 are a new site in Wuhan for our chemistry business, a new GMP biologics manufacturing facility in the city of Wuxi, expansion of our new research manufacturing capacity in our Jinshan facility, and continuing build-up of pharmacology models and biology capabilities. In the second quarter, we opened our new API/drug product stability testing facility dedicated to Bristol-Myers Squibb. To help manage this uniquely broad R&D services platform, we have recently hired several executives with significant expertise and extensive industry experience across the drug discovery and development value chain.
"WuXi has a business model that is working," Dr. Li concluded. "Offshore outsourcing of R&D offers pharmaceutical and biotech companies greater operational flexibility and access to high-quality scientific expertise at reasonable prices. Moreover, we are beginning to see increasing interest from our customers to develop drugs for the rapidly growing Chinese pharmaceutical market. 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."
Source:21cbh.com