SHANGHAI, Nov. 12, 2012 /PRNewswire/ -- 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 2012.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20040705/CNM002LOGO)
Highlights
- Net Revenues Increased 21.0% Year Over Year to $125.8 Million
- Laboratory Services Net Revenues Grew 25.5% Year Over Year to
$98.9 Million
- China-Based Laboratory Services Net Revenues Increased 32.4%
Year Over Year to $77.0 Million
- U.S.-Based Laboratory Services Net Revenues Increased 6.0% Year
Over Year to $21.9 Million
- Manufacturing Services Net Revenues Grew 7.0% Year Over Year to
$26.9 Million
- Share Repurchases Totaled $19.8
Million in the Third Quarter, Completing the Current
$30.0 Million Authorization
- GAAP Diluted Earnings Per ADS Grew 7.8% Year Over Year to
$0.30
- Non-GAAP Diluted Earnings Per ADS Increased 18.4% Year Over
Year to $0.36
- Company Updates Full-Year 2012 Guidance
Management Comment
"I'm very pleased that WuXi delivered another solid quarter with
strong revenue and earnings growth in the third quarter," said Dr.
Ge Li, Chairman and Chief Executive
Officer. "Year-over-year revenue growth of 21.0% was driven by
increasing demand for WuXi's broad platform of integrated services.
China-based laboratory services
achieved 32.4% revenue growth, driven by growth from our integrated
drug discovery and development services and rapidly growing new
services, including toxicology and biologics development services.
We also achieved solid EPS growth of 7.8% GAAP and 18.4%
non-GAAP. We met or exceeded all of our third-quarter
financial guidance, and we expect to deliver our business and
financial goals for the full year.
"To sustain the company's growth, we are continuing to invest in
talent and facilities in both our ongoing businesses and in newer
businesses, such as biologics and genomics," Dr. Li continued. "In
laboratory services, our continuing investments, particularly in
integrated drug discovery and development capabilities leading to
IND filings, are driving excellent revenue growth. We made
significant progress in the quarter in building our biologics
business, as we signed major deals with MedImmune, TaiMed, and Open
Monoclonal Technology. We have also now opened our cGMP
drug-substance biologics manufacturing facility in Wuxi city, the
first such facility in China. Our
small-molecule manufacturing business has a growing pipeline of
products in all phases of development. In spite of our investments,
we continue to achieve substantial free cash flow, a portion of
which we have used to repurchase our ADSs, reflecting our
confidence in our future. We have also instituted a company-wide
Lean Sigma program to drive efficiency and cost savings."
Third-Quarter GAAP Results
Third-quarter 2012 net revenues increased 21.0% year over year
to $125.8 million. Revenue growth in
Laboratory Services of 25.5% was driven by our comprehensive and
integrated discovery and development services, including the new
biologics business, and increased demand for testing services for
both biologics and medical devices in the
United States. Revenue growth of 7% year over year in
Manufacturing Services was driven by increased demand for
clinical-trial materials in our research manufacturing business,
which more than offset lower demand for advanced intermediates in
our commercial manufacturing business.
Third-quarter 2012 GAAP gross profit increased 13.6% year over
year to $46.1 million due to 21.0%
revenue growth, offset by lower gross margin. Third-quarter 2012
GAAP gross margin decreased year over year to 36.6% from 39.0%.
Gross margin in Laboratory Services decreased year over year to
38.2% from 41.0% mainly due to the effects of increasing labor
costs in China, investments in new
businesses, and lower pricing, partially offset by improved
productivity. Gross margin in Manufacturing Services decreased year
over year to 30.7% from 32.6% mainly due to lower revenues from
commercial manufacturing.
Third-quarter 2012 GAAP operating income decreased 3.6% year
over year to $21.5 million due to
increased operating expenses from the hiring of new senior staff
and increased share-based compensation expense, partially offset by
13.6% growth in gross profit. Operating margin decreased to 17.0%
from 21.4% due to the lower gross margin and the increased
operating expenses.
Third-quarter 2012 GAAP net income increased 3.2% year over year
to $21.3 million due to a 49.7%
increase in other income/(expenses), net, driven by a gain on
foreign-exchange forward contracts of $1.4
million, partially offset by the 3.6% decrease in operating
income.
Third-quarter 2012 GAAP diluted earnings per ADS increased 7.8%
to $0.30 due to the 3.2% increase in
net income and a lower ADS count caused by the company's purchase
of 2,846,375 ADSs from General Atlantic in February 2012 and of 2,138,993 ADSs, at an
average price of $14.03 per ADS, in
the open market during the second and third quarters of 2012 to
complete the $30 million authorized
share repurchase program announced in March
2012.
Third-quarter 2012 GAAP comprehensive income decreased 27.5%
year over year to $20.2 million due
to the decrease in currency translation adjustments, partially
offset by the 3.2% increase in GAAP net income.
Third-Quarter Non-GAAP Results
Non-GAAP financial results exclude the impact of share-based
compensation expenses and the amortization of acquired intangible
assets and the associated deferred tax impact.
Third-quarter 2012 non-GAAP gross profit increased 13.9% year
over year to $47.6 million mainly due
to broad-based revenue growth, offset by lower gross margin.
Non-GAAP gross margin decreased year over year to 37.8% from 40.2%.
Non-GAAP gross margin in Laboratory Services decreased mainly due
to increased labor costs, investment in new businesses, and lower
pricing, partially offset by improved productivity. Non-GAAP gross
margin in Manufacturing Services decreased mainly due to lower
revenues from commercial manufacturing.
Third-quarter 2012 non-GAAP operating income increased 6.9% year
over year to $26.6 million, primarily
due to the 13.9% increase in non-GAAP gross profit, offset by
increased operating expenses from the hiring of new senior staff.
Operating margin decreased to 21.2% from 24.0%, mainly due to the
lower gross margin.
Third-quarter 2012 non-GAAP net income grew 13.4% year over year
to $26.3 million due to the 6.9%
increase in non-GAAP operating income and a 49.7% increase in other
income/(expenses), net, driven by a gain on foreign-exchange
forward contracts of $1.4
million.
Third-quarter 2012 non-GAAP diluted earnings per ADS grew 18.4%
year over year to $0.36 due to the
13.4% increase in non-GAAP net income and a lower ADS count caused
by the company's purchase of 2,846,375 ADSs from General Atlantic
in February 2012 and of 2,138,993
ADSs, at an average price of $14.03
per ADS, during the second and third quarters of 2012 to complete
the $30 million authorized share
repurchase program announced in March
2012.
Full-Year 2012 Financial Guidance
The company provides the following full-year 2012 financial
guidance:
- Total net revenues of $495-498
million, or about 22% year-over-year growth, compared to
previous guidance of $488-498
million, or 20-22% growth
- Total net revenues for China-based Laboratory Services of
$291-292 million, or about 26% growth
year over year, compared to previous guidance of 23-26% growth, on
a pro-forma basis reflecting the classification of Process
Chemistry in Manufacturing Services for both years
- Total net revenues for U.S.-based Laboratory Services of
$89-90 million, or about 11-12%
growth year over year, compared to previous guidance of 12-13%
growth
- Total net revenues of Manufacturing Services of $115-116 million, or about 20-21% growth year
over year, compared to previous guidance of 18-21%, on a pro-forma
basis reflecting the classification of Process Chemistry in
Manufacturing Services for both years
- Operating margin of about 17.5% on a GAAP basis and about 20.5%
on a non-GAAP basis, compared to previous guidance of 17.0-18.0%
and 20.0%-21.0%, respectively
- Capital expenditures of about $70
million, the same as previous guidance
- GAAP effective tax rate of about 17.5%, the same as previous
guidance
Fourth-Quarter 2012 Financial Guidance
- The company provides the following fourth-quarter 2012
financial guidance:
- Total net revenues of $121-124
million, up about 11-14% year over year
- Laboratory Services net revenues (not including Process
Chemistry) of $101-103 million
- Manufacturing Services net revenues (including Process
Chemistry) of $20-21 million
- Operating margin of about 17.0% GAAP, about 20.0% non-GAAP
WUXI
PHARMATECH (CAYMAN) INC.
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(in thousands of U.S.
dollars, except ordinary share, ADS and par value
data)
|
|
|
|
|
|
|
September 30,
2012
|
December 31,
2011
|
Assets:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
|
53,833
|
71,368
|
Restricted cash
|
|
532
|
2,458
|
Short-term investment
|
|
132,029
|
128,054
|
Accounts receivable, net
|
|
94,645
|
72,736
|
Inventories
|
|
41,294
|
45,351
|
Prepaid expenses and other current assets
|
|
16,932
|
15,133
|
Total current assets
|
|
339,265
|
335,100
|
Non-current
assets:
|
|
|
|
Goodwill
|
|
34,208
|
34,701
|
Property, plant and equipment, net
|
|
263,256
|
245,694
|
L/T investment
|
|
11,157
|
4,335
|
Intangible assets, net
|
|
9,235
|
10,568
|
Land use rights
|
|
5,354
|
5,488
|
Deferred tax assets
|
|
4,964
|
8,499
|
Other non-current assets
|
|
19,220
|
19,469
|
Total
non-current assets
|
|
347,394
|
328,754
|
Total assets
|
|
686,659
|
663,854
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term and current portion of long-term debt
|
|
36,732
|
28,661
|
Accounts payable
|
|
19,821
|
22,803
|
Accrued expenses
|
|
23,389
|
20,913
|
Deferred revenue
|
|
17,033
|
15,881
|
Advanced subsidies
|
|
7,741
|
6,417
|
Other taxes payable
|
|
2,581
|
2,196
|
Convertible notes
|
|
-
|
35,864
|
Other current liabilities
|
|
12,460
|
10,018
|
Total current liabilities
|
|
119,757
|
142,753
|
Non-current
liabilities:
|
|
|
|
Long-term debt, excluding current portion
|
|
5,750
|
1,646
|
Advanced subsidies
|
|
1,763
|
3,215
|
Long-term payable
|
|
6,134
|
3,944
|
Other non-current liabilities
|
|
6,452
|
6,570
|
Total non-current liabilities
|
|
20,099
|
15,375
|
Total liabilities
|
|
139,856
|
158,128
|
Equity:
|
|
|
|
Ordinary shares ($0.02 par value, 5,002,550,000 authorized,
570,489,352 and 559,916,954 issued and outstanding as of December
31, 2011, and September 30, 2012, respectively)
|
|
11,198
|
11,410
|
Additional paid-in capital
|
|
328,215
|
345,832
|
Retained earnings
|
|
164,784
|
103,159
|
Accumulated other comprehensive income
|
|
42,606
|
45,325
|
Total equity
|
|
546,803
|
505,726
|
Total liabilities and equity
|
|
686,659
|
663,854
|
WUXI
PHARMATECH (CAYMAN) INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(In thousands of U.S.
dollars, except ADS data and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2012
|
2011
|
%
Change
|
|
2012
|
2011
|
%
Change
|
Net revenues:
|
|
|
|
|
|
|
|
|
Laboratory Services
|
|
98,925
|
78,802
|
25.5%
|
|
279,119
|
224,136
|
24.5%
|
Manufacturing Services
|
|
26,919
|
25,166
|
7.0%
|
|
95,134
|
74,500
|
27.7%
|
Total net
revenues
|
|
125,844
|
103,968
|
21.0%
|
|
374,253
|
298,636
|
25.3%
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Laboratory Services
|
|
(61,097)
|
(46,457)
|
31.5%
|
|
(174,840)
|
(133,714)
|
30.8%
|
Manufacturing Services
|
|
(18,657)
|
(16,956)
|
10.0%
|
|
(64,938)
|
(51,042)
|
27.2%
|
Total cost of
revenues
|
|
(79,754)
|
(63,413)
|
25.8%
|
|
(239,778)
|
(184,756)
|
29.8%
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
Laboratory Services
|
|
37,828
|
32,345
|
17.0%
|
|
104,279
|
90,422
|
15.3%
|
Manufacturing Services
|
|
8,262
|
8,211
|
0.6%
|
|
30,196
|
23,458
|
28.7%
|
Total gross
profit
|
|
46,090
|
40,556
|
13.6%
|
|
134,475
|
113,880
|
18.1%
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
|
(3,594)
|
(2,736)
|
31.4%
|
|
(10,601)
|
(7,240)
|
46.4%
|
General and administrative expenses
|
|
(19,302)
|
(14,058)
|
37.3%
|
|
(52,374)
|
(39,840)
|
31.5%
|
Research and development expenses
|
|
(1,744)
|
(1,518)
|
14.9%
|
|
(5,637)
|
(3,202)
|
76.0%
|
Total operating
expenses
|
|
(24,640)
|
(18,312)
|
34.6%
|
|
(68,612)
|
(50,282)
|
36.5%
|
Operating
income
|
|
21,450
|
22,244
|
(3.6%)
|
|
65,863
|
63,598
|
3.6%
|
|
|
|
|
|
|
|
|
|
Other income (expenses),
net:
|
|
|
|
|
|
|
|
|
Other income (expenses), net
|
|
3,103
|
1,366
|
127.2%
|
|
5,263
|
3,142
|
67.5%
|
Interest income (expenses), net
|
|
1,399
|
1,641
|
(14.7%)
|
|
4,523
|
3,447
|
31.2%
|
Total other income
(expenses), net
|
|
4,502
|
3,007
|
49.7%
|
|
9,786
|
6,589
|
48.5%
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
25,952
|
25,251
|
2.8%
|
|
75,649
|
70,187
|
7.8%
|
Income tax
expense
|
|
(4,669)
|
(4,628)
|
0.9%
|
|
(12,885)
|
(12,689)
|
1.5%
|
Net
income
|
|
21,283
|
20,623
|
3.2%
|
|
62,764
|
57,498
|
9.2%
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
income:
|
|
|
|
|
|
|
|
|
Currency translation
adjustments
|
|
(1,117)
|
7,176
|
(115.6%)
|
|
(2,719)
|
15,371
|
(117.7%)
|
Comprehensive
income
|
|
20,166
|
27,799
|
(27.5%)
|
|
60,045
|
72,869
|
(17.6%)
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per ADS
|
|
0.30
|
0.29
|
4.0%
|
|
0.88
|
0.81
|
8.3%
|
Diluted net earnings
per ADS
|
|
0.30
|
0.27
|
7.8%
|
|
0.86
|
0.76
|
12.4%
|
|
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding—basic
|
|
70,507,167
|
71,073,646
|
(0.8%)
|
|
71,375,430
|
70,786,042
|
0.8%
|
Weighted average ADS
outstanding—diluted
|
|
72,001,577
|
75,175,960
|
(4.2%)
|
|
73,168,508
|
75,352,990
|
(2.9%)
|
WUXI
PHARMATECH (CAYMAN) INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
(in thousands of U.S.
dollars, except ADS data and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2012
|
2011
|
%
Change
|
|
2012
|
2011
|
%
Change
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
46,090
|
40,556
|
13.6%
|
|
134,475
|
113,880
|
18.1%
|
GAAP gross
margin
|
|
36.6%
|
39.0%
|
|
|
35.9%
|
38.1%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
979
|
862
|
13.6%
|
|
3,068
|
2,842
|
8.0%
|
Amortization of acquired intangible assets
|
|
525
|
355
|
47.9%
|
|
1,575
|
1,065
|
47.9%
|
Non-GAAP gross
profit
|
|
47,594
|
41,773
|
13.9%
|
|
139,118
|
117,787
|
18.1%
|
Non-GAAP gross
margin
|
|
37.8%
|
40.2%
|
|
|
37.2%
|
39.4%
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
21,450
|
22,244
|
(3.6%)
|
|
65,863
|
63,598
|
3.6%
|
GAAP operating
margin
|
|
17.0%
|
21.4%
|
|
|
17.6%
|
21.3%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
4,661
|
2,319
|
101.0%
|
|
10,906
|
8,366
|
30.4%
|
Amortization of acquired intangible assets
|
|
525
|
355
|
47.9%
|
|
1,575
|
1,065
|
47.9%
|
Non-GAAP operating
income
|
|
26,636
|
24,918
|
6.9%
|
|
78,344
|
73,029
|
7.3%
|
Non-GAAP operating
margin
|
|
21.2%
|
24.0%
|
|
|
20.9%
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
21,283
|
20,623
|
3.2%
|
|
62,764
|
57,498
|
9.2%
|
GAAP net
margin
|
|
16.9%
|
19.8%
|
|
|
16.8%
|
19.3%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
4,661
|
2,319
|
101.0%
|
|
10,906
|
8,366
|
30.4%
|
Amortization of acquired intangible assets
|
|
525
|
355
|
47.9%
|
|
1,575
|
1,065
|
47.9%
|
Deferred tax impact related to acquired intangible
assets
|
|
(195)
|
(137)
|
42.3%
|
|
(584)
|
(412)
|
41.7%
|
Non-GAAP net
income
|
|
26,274
|
23,160
|
13.4%
|
|
74,661
|
66,517
|
12.2%
|
Non-GAAP net
margin
|
|
20.9%
|
22.3%
|
|
|
19.9%
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
Income attributable
to holders of ADS (Non-GAAP):
|
|
|
|
|
|
|
|
|
Basic
|
|
26,274
|
23,160
|
13.4%
|
|
74,661
|
66,517
|
12.2%
|
Diluted
|
|
26,274
|
23,160
|
13.4%
|
|
74,661
|
66,517
|
12.2%
|
|
|
|
|
|
|
|
|
|
Basic earnings per
ADS (Non-GAAP)
|
|
0.37
|
0.33
|
14.4%
|
|
1.05
|
0.94
|
11.3%
|
Diluted earnings per
ADS (Non-GAAP)
|
|
0.36
|
0.31
|
18.4%
|
|
1.02
|
0.88
|
15.6%
|
|
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding
– basic (Non-GAAP)
|
|
70,507,167
|
71,073,646
|
(0.8%)
|
|
71,375,430
|
70,786,042
|
0.8%
|
Weighted average ADS
outstanding
– diluted (Non-GAAP)
|
|
72,001,577
|
75,175,960
|
(4.2%)
|
|
73,168,508
|
75,352,990
|
(2.9%)
|
WUXI
PHARMATECH (CAYMAN) INC.
|
REVENUE
BREAKDOWN
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2012
|
2011
|
%
Change
|
|
2012
|
2011
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
China-based Laboratory Services
|
|
77,055
|
58,178
|
32.4%
|
|
211,801
|
164,677
|
28.6%
|
China-based Manufacturing Services
|
|
26,919
|
25,166
|
7.0%
|
|
95,134
|
74,500
|
27.7%
|
Subtotal
|
|
103,974
|
83,344
|
24.8%
|
|
306,935
|
239,177
|
28.3%
|
U.S.-based Laboratory Services
|
|
21,870
|
20,624
|
6.0%
|
|
67,318
|
59,459
|
13.2%
|
Total net
revenues
|
|
125,844
|
103,968
|
21.0%
|
|
374,253
|
298,636
|
25.3%
|
Conference Call
WuXi PharmaTech senior management will host a conference call at
8:00 am (U.S. Eastern) / 5:00 am (U.S. Pacific) / 9:00 pm (Beijing/Shanghai/Hong
Kong) on Tuesday, November 13,
2012, to discuss its third-quarter 2012 financial results
and future prospects. The conference call may be accessed by
calling:
United
States:
|
1-866-519-4004
|
China
(Landline):
|
800-819-0121
|
China
(Mobile):
|
400-620-8038
|
Hong Kong:
|
800-930-346
|
United
Kingdom:
|
0-808-234-6646
|
International:
|
+65-6723-9381
|
Conference
ID:
|
46119921
|
A telephone replay will be available two hours after the call's
completion at:
United
States:
|
1-866-214-5335
|
China
(Landline):
|
10-800-714-0386
|
China
(Mobile):
|
10-800-140-0386
|
Hong Kong:
|
800-901-596
|
United
Kingdom:
|
0-800-731-7846
|
International:
|
+61-2-8235-5000
|
Conference
ID:
|
46119921
|
A live webcast of the conference call and replay will be
available on the investor relations page of WuXi PharmaTech's
website at http://www.wuxiapptec.com.
About WuXi PharmaTech
WuXi PharmaTech is a leading pharmaceutical, biotechnology, and
medical device R&D outsourcing company, with operations in
China and the United
States. As a research-driven and customer-focused company,
WuXi PharmaTech provides a broad and integrated portfolio of
laboratory and manufacturing services throughout the drug and
medical device R&D process. WuXi PharmaTech's services are
designed to assist its global partners in shortening the cycle and
lowering the cost of drug and medical device R&D. WuXi
PharmaTech's operating subsidiaries are known as WuXi AppTec. For
more information, please visit: http://www.wuxiapptec.com.
Use of Non-GAAP and Pro-Forma Financial
Measures
We have provided the third-quarter 2011 and 2012 gross profit,
gross margin, operating income, operating margin, net income, net
margin, and earnings per ADS on a non-GAAP basis, which excludes
share-based compensation expenses and amortization and deferred tax
impact of acquired intangible assets. We believe both management
and investors benefit from referring to these non-GAAP financial
measures in assessing our financial performance and liquidity and
when planning and forecasting future periods. These non-GAAP
operating measures are useful for understanding and assessing
underlying business performance and operating trends. We
expect to continue to provide net income and earnings per ADS on a
non-GAAP basis using a consistent method on a quarterly basis.
You should not view non-GAAP results on a stand-alone basis or
as a substitute for results under GAAP, or as being comparable to
results reported or forecasted by other companies, and should refer
to the reconciliation of GAAP measures to non-GAAP measures for the
indicated periods attached hereto.
Statements in this presentation contain "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and as defined in the Private Securities
Litigation Reform Act of 1995, including, among others, our ability
to reach our business and financial goals for the full year 2012,
our financial guidance for full-year and fourth-quarter 2012
(including, as applicable, estimated total revenues, Laboratory
Services revenues, Manufacturing Services revenues, operating
margins, capital expenditures, effective tax rates and other
trends), overall ongoing and future investment in talent and
facilities, laboratory services ongoing and future investment, the
growth of our small-manufacturing business pipeline, our ability to
continue achieving substantial free cash flow, building a
comprehensive and integrated technology platform, the ability of
this platform to enable anyone and any company to discover and
develop new products efficiently and cost-effectively, our future
delivery of drug candidates, pricing pressure in synthetic
chemistry, our productivity and future operating costs, the
build-up of clinical development service capabilities, the growth
of our biologics drug discovery and development capabilities, our
expected biologic services project portfolio, the growth and growth
drivers in our manufacturing services, the expected variability of
commercial manufacturing revenue, research manufacturing revenues,
expected growth across China-based
laboratory services, increasing utilization of our integrated drug
development services, revenue growth in U.S.-based laboratory
services, growth in manufacturing services, expansion of our
clinical development platform, lower capital expenditures, and more
efficient use of existing facilities.
These forward-looking statements are not historical facts but
instead represent only our belief regarding future events, many of
which, by their nature, are inherently uncertain and outside of our
control. Our actual results and financial condition and other
circumstances may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. Among other factors, the state of the global
economy may continue to be uncertain; pharmaceutical companies may
not change their business models as expected or in a manner
favorable to us; we may fail to capitalize on the opportunities
presented; the pressures being felt by our customers and
pharmaceutical industry consolidation may adversely impact our
business and the trends for outsourced and offshored R&D and
manufacturing for longer than expected or more severely than
expected; we may not enjoy the anticipated benefits of the Abgent
and MedKey acquisitions or other planned investments and capital
expenditures (including investments made through our corporate
venture fund) on a timely basis or at all; we may need to modify
the nature and level of our investments and capital expenditures;
we may not maintain our preferred provider status with our clients
and may be unable to successfully expand our capabilities to meet
client needs; and we may face increased margin pressure as a result
of renminbi appreciation and increased labor inflation in
China and the company's
investment. In addition, other factors that could cause our
actual results to differ from what we currently anticipate include
failure to generate sufficient future cash flows or to secure any
required future financing on acceptable terms or at all; failure to
retain key personnel; our reliance on a limited number of customers
to continue to account for a high percentage of our revenues; the
risk of payment failure by any of our large customers, which could
significantly harm our cash flows and profitability; our dependence
upon the continued service of our senior management and key
scientific personnel, and our ability to retain our existing
customers or expand our customer base. You should read the
financial information contained in this release in conjunction with
the consolidated financial statements and related notes thereto
included in our 2011 Annual Report on Form 20-F filed with the
Securities and Exchange Commission and available on the Securities
and Exchange Commission's website at http://www.sec.gov. For
additional information on these and other important factors that
could adversely affect our business, financial condition, results
of operations and prospects, see "Risk Factors" beginning on page 6
of our 2011 Annual Report on Form 20-F. Our results of
operations for third-quarter 2012 are not necessarily indicative of
our operating results for any future periods. All projections
in this release are based on limited 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-looking
statements, whether as a result of new information, future events
or otherwise, after the date of this press release, except as
required by law. Such information speaks only as of the date
of this release.
Statement Regarding Unaudited Financial Information
The financial information set forth above is unaudited and
subject to adjustments. Adjustments to the financial statements may
be identified when our annual financial statements are prepared and
audit work is performed for the year end audit, which could result
in significant differences from this unaudited financial
information.
Incorporation by Reference
WuXi PharmaTech hereby expressly incorporates by reference into
its registration statement on Form F-3
(File No. 333-161757) the discussions contained in
"Third-Quarter GAAP Results," the unaudited consolidated balance
sheets, the unaudited condensed consolidated statements of
operations, and the revenue breakdown by geography, from this press
release.
For more information, please contact:
WuXi PharmaTech (Cayman) Inc.
Ronald Aldridge (for investors)
Director of Investor Relations
Tel: +1-201-585-2048
Email: ir@wuxiapptec.com
Aaron Shi (for the media)
WuXi PharmaTech (Cayman) Inc.
Tel: +86-21-5046-4362
Email: pr@wuxiapptec.com
SOURCE WuXi PharmaTech (Cayman) Inc.