Medindia LOGIN REGISTER
Medindia
Advertisement

WuXi PharmaTech Announces First Quarter 2008 Results

Wednesday, May 28, 2008 General News
Advertisement
SHANGHAI, China, May 27 WuXi PharmaTech (Cayman)Inc. (NYSE: WX), a leading pharmaceutical, biotechnology and medical deviceresearch and development outsourcing company with operations in China and theUnited States, today announced its selected unaudited financial results forthe first quarter ended March 31, 2008.
Advertisement

Commenting on the first quarter 2008 results, Dr. Ge Li, Chairman andChief Executive Officer of WuXi PharmaTech said, "I am very pleased to reportan outstanding first quarter for WuXi PharmaTech. This quarter marked thebeginning of a new phase as a global company following the acquisition ofAppTec. Compared to the first quarter 2007, we delivered solid top- andbottom-line growth, demonstrating our ability to consistently execute on ourstrategy.
Advertisement

"The integration of our US- and China-based operations is progressing asplanned. Under a new global organizational structure, all of our businessunits and support functions have begun implementing initiatives designed todrive business growth by leveraging our global capabilities and resources.

"As the pharmaceutical, biotechnology and medical device industriescontinue to embrace outsourcing as a strategic option, our broad and uniqueglobal service platform positions us to capitalize on this trend and achieveour strategic and financial goals."

First Quarter 2008 Unaudited Financial Results

Net Revenues. Net revenues increased 68.7% to $57.1 million in the firstquarter 2008 from $33.8 million in the first quarter 2007. This increase wasprimarily driven by the strong organic growth and the addition of US-basedservices following the close of the AppTec Laboratory Services, Inc.acquisition on January 31, 2008. During the two-month post-acquisition period,our US-based services contributed $11.0 million for the first quarter 2008.

Net revenues from laboratory services increased 77.4% to $38.5 million inthe first quarter 2008 from $21.7 million in the first quarter 2007, driven bya growing demand for our core discovery chemistry and process researchservices, and testing services from the AppTec acquisition. Net revenues frommanufacturing services increased by 53.3% to $18.6 million in the firstquarter 2008 from $12.1 million in the first quarter 2007, primarily due to anincrease in the number and scope of projects.

Gross margins. Overall gross margin was 42.5% in the first quarter 2008.Our laboratory services margin was 49.2% and manufacturing margin was 28.7% inthe first quarter 2008. While our laboratory services margin remained robust,the manufacturing services margin was affected by the low utilization in ourbiologics manufacturing facility. Looking forward, we expect the utilizationrate to improve in later quarters.

Operating Expenses. Operating expenses increased 28.3% to $12.6 millionin the first quarter 2008 from $9.8 million in the first quarter 2007reflecting business growth and operational expansion. Operating expenses as apercentage of total net revenues decreased to 22.1% in the first quarter 2008from 29.1% over the same period last year.

Operating Margin. Operating margin was 20.4% in the first quarter 2008,up from 17.3% in the first quarter 2007 primarily due to increased operatingleverage.

Net Income. Net income increased by 131.9% to $13.9 million for the firstquarter 2008 from $6.0 million for the first quarter 2007. Net profit marginincreased to 24.3% in the first quarter 2008 from 17.7% in the first quarter2007. Non-GAAP net income, as defined below, for the first quarter 2008 grewby 85.3% to $17.3 million, compared to the non-GAAP net income of $9.3 millionin the first quarter 2007. Diluted earnings per ADS were $0.19 and non-GAAPdiluted earnings per ADS were $0.24 in the first quarter 2008.

2008 Guidance

We maintain our 2008 annual consolidated net revenues guidance in therange from $280 million
Sponsored Post and Backlink Submission


Latest Press Release on General News

This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close