WuXi PharmaTech Reports Strong Q1

Includes: CRL, WX
by: ChinaBio Today

WuXi PharmaTech (NYSE: WX) reported Q1 revenues rose 36% to $80.6 million, helped by a very large increase in its contract manufacturing division, which grew 433% to $13.6 million. In WuXi’s core Lab Services business, revenues were up 18%. GAAP net income climbed 32% to $15.5 million or 21 cents per share.

The company showed some optimism about the rest of the year. It now expects full-year 2010 revenues to be at the high end of its previous $310-$320 million forecast, about an 18-19% growth rate. China-based lab services will increase about 15% while revenues from manufacturing will jump at least 70%.

WuXi also pointed out that its laboratory business was higher because of increased offerings such as DMPK/ADME, biology, process research, formulation and analytical services. It said manufacturing was strong because of delivery of a single large project and increasing demand. On the other hand, startup costs of its Suzhou toxicology facility had a negative effect on earnings.

In late April, WuXi agreed to be acquired by Charles River Labs (NYSE: CRL) for $1.6 billion. The two companies expect the transaction to close in Q4 of 2010.

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