WuXi PharmaTech Will Focus U.S. Operations on Laboratory Testing Services

Tuesday, December 2, 2008 General News
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SHANGHAI, China, Dec. 2 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 it will dedicate its Philadelphia facility tothe Company's expanding biologics testing, cell banking and cell therapyservices, and as of December 31, 2008, WuXi will discontinue its U.S.biologics manufacturing operations. In conjunction, approximately 100biologics manufacturing and supporting positions at the Philadelphia facilitywill be eliminated through workforce reduction and employee attrition.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040705/CNM002LOGO )

For 2008, WuXi anticipates biologics manufacturing revenues will be lessthan four percent of total expected annual revenue. Beginning in 2009, WuXiexpects to realize approximately $10 million in annual cost savings resultingfrom this change.

Dr. Ge Li, Chairman and Chief Executive Officer of WuXi PharmaTech, said,"WuXi has been fortunate, even in current market conditions, to continue toexperience rapid growth in our global business. This growth reflects ourreputation for providing high-quality laboratory services to our clients in acost-efficient manner. With our continued focus on growth and profitability,we are moving to mitigate operating risks in our biologics manufacturingoperations, all of which are based in Philadelphia, and are shifting ourPhiladelphia-based resources to biologics testing and laboratory services,which continue to show strong customer demand. Our biologics testing, cellbanking and cell therapy operations in Philadelphia and our St. Paul andAtlanta operations will be unaffected by these actions."

WuXi expects to record (i) cash restructuring charges, estimated to totalapproximately $2.5 to $3.5 million, consisting primarily of severance andother employee-related charges and to be payable over the next few months; and(ii) non-cash charges for impairment of certain fixed and intangible assets,including goodwill. WuXi currently is working with external consultants todetermine an estimate for the non-cash impairment charges as a result of therestructuring.

Conference Call

WuXi PharmaTech's senior management will host a conference call at 8:00a.m. (Eastern) / 5:00 a.m. (Pacific) / 9:00 p.m. (Beijing/Hong Kong) onDecember 2, 2008, to discuss today's announcement. The conference call may beaccessed by dialing:

A live webcast of the conference call and replay will be available on theinvestor relations page of WuXi PharmaTech's website athttp://www.wuxiapptec.com .

About WuXi PharmaTech

WuXi PharmaTech is a leading pharmaceutical, biotechnology and medicaldevice R&D outsourcing company, with operations in China and the United States.As a research-driven and customer-focused company, WuXi PharmaTech providesbroad and integrated portfolio of laboratory and manufacturing servicesthroughout the drug and medical device R&D process. WuXi PharmaTech'sservices are designed to assist its global partners in shortening the cycleand lowering the cost of drug and medical device R&D. WuXi PharmaTech'soperating subsidiaries are known as WuXi AppTec. For more information, pleasevisit: http://www.wuxiapptec.com .

Cautionary Note Regarding Forward-Looking Statements

Statements in this release contain "forward-looking" statements within themeaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended, and as defined in thePrivate Securities Litigation Reform Act of 1995, including those regardingWuXi's anticipated 2008 biologics net revenue; the timing of and the costs andbenefits of the restructuring; and WuXi's plans to expand and to continuegrowth for its biologics testing, cell banking and cell therapy services.

These forward-looking statements are not historical facts but insteadrepresent only our belief regarding future events, many of which, by theirnature, are inherently uncertain and outside of our control. Our actualresults and financial condition and other circumstances may differ, possiblymaterially, from the anticipated results and financial condition indicated inthese forward-looking statements. For example, it may take longer thananticipated to wind-down the biologics manufacturing business; actualrestructuring charges could be higher; and actual cost savings could be lessthan anticipated and it may take longer than anticipated to realize those costsavings. In addition, the biologics testing, cell banking and cell therapyservices may not continue to experience strong customer demand or grow athistorical rates or at all. For example, WuXi's ability to successfullyexpand and to attract customers for these biologics services may be harmed bythe wind-down of the Philadelphia based biologics manufacturing operations.

Other relevant factors include: uncertainty in the global economy mayadversely impact our business and the trends for outsourced R&D andmanufacturing; pharmaceutical and biotechnology companies may not change theirbusiness models as expected or in a manner favorable to us; we may fail tocapitalize on the opportunities presented; we may not maintain our preferredprovider status with our clients; and may be unable to expand our capabilitiessuccessfully to meet client needs. In addition other factors that could causeour actual results to differ from what we currently anticipate include: ourlimited operating history; failure to generate sufficient future cash flows orsecure any required future financing on acceptable terms or at all; failure toretain key personnel; effective integration of products and services fromAppTec; our reliance on a limited number of customers to continue to accountfor a high percentage of our revenues; risk of payment failure by any of ourlarge customers, which could significantly harm our cash flows andprofitability; dependency upon the continued service of our senior managementand key scientific personnel and ability to retain our existing customers orexpand our customer base. The financial information contained in this releaseshould be read in conjunction with the consolidated and pro forma financialstatements and notes thereto included in our 2007 Annual Report on Form 20-Ffiled with available on the Securities and Exchange Commission's website athttp://www.sec.gov . For additional information on these and other importantfactors that could adversely affect our business, financial condition, resultsof operations and prospects, see "Risk Factors" beginning on Page 10 of our2007 Annual Report on Form 20-F. Any projections in this release are based onlimited information currently available to us, which is subject to change.Although these projections and the factors influencing them will likely change,we undertake no obligation to update or revise these forward-lookingstatements, whether as a result of new information, future events or otherwise,after the date of this press release. Such information speaks only as of thedate of this release.(US) 866-586-2813 (China, Northern Region) 10-800-611-0127 (China, Southern Region) 10-800-361-0079 (HK) 800-965-808 (UK) 0-800-056-9662 (International) +61-2-8524-6650 Conference ID: 75793921 A telephone replay will be available two hours after the call's completionuntil December 9, 2008, at: (US) 866-214-5335 (HK) 800-901-596 (China) 10-800-140-0386 (UK) 0-800-731-7846 (International) +61-2-8235-5000 Passcode: 75793921

SOURCE WuXi PharmaTech (Cayman) Inc.

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