mlkrborn
12 years ago
Recent news and views; Most missed in this board:
Recent important news:
InPlay: WuXi PharmaTech expects to slightly exceed the top end of its previous guidance for 2011 total net revenues - Yahoo, 1:05:00 AM
WuXi PharmaTech Provides Update of 2011 Financial Guidance, to Present at J.P. Morgan Healthcare Conference - PR Newswire, 1:00:00 AM
Injured Chinese IPO's To Offer Value Opportunities - Seeking Alpha, 1/8/2012 8:02:00 PM
10 Chinese Stocks For Profits In 2012, Part I - Seeking Alpha, 12/30/2011 1:22:00 AM
Covidien Spins Off Drug Company: 5 Drug Makers Hedge Funds Want Most - The Motley Fool, 12/16/2011 7:05:00 AM
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WuXi PharmaTech Presents the 2011 Life Science and Chemistry Awards - PR Newswire, 12/12/2011 2:25:00 AM
Research And Development In Niche Disease States A Big Trend In Large Pharma Says Editor Of Morningstar Healthcare Observer;; See His Top Picks In This Space In This Exclusive Interview - Yahoo, 11/17/2011 5:52:00 AM
WuXi Forms $50 Million Venture Fund - Seeking Alpha, 11/16/2011 7:48:00 PM
China Biotech Week In Review: WuXi PharmaTech Forms Venture Fund - Seeking Alpha, 11/14/2011 4:52:00 AM
New Star Analyst Rankings for WuXi PharmaTech (Cayman) Inc. A - Yahoo, 11/12/2011 1:37:00 AM
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InPlay: WuXi PharmaTech beats by $0.04, beats on revs;; guides FY11 revs in-line - Yahoo, 11/10/2011 8:32:00 AM
WuXi PharmaTech Announces Third-Quarter 2011 Results - PR Newswire, 11/10/2011 8:30:00 AM
Q3 2011 Wuxi Pharmatech (Cayman) Inc Earnings Release - After Market Close - Yahoo, 11/9/2011 11:08:00 PM
Earnings Season: 10 Companies on Next Week's Roster Undervalued by Their Target Prices - The Motley Fool, 11/2/2011 7:18:00 AM
China Biotech Week In Review: BioBay Park Forms Partnership With Roche, Harvard - Seeking Alpha, 10/29/2011 10:35:00 PM
WuXi PharmaTech Schedules Third-Quarter 2011 Earnings Release - PR Newswire, 10/25/2011 6:07:00 AM
WuXi PharmaTech Acquires China-Based Clinical Research Services Companies - PR Newswire, 10/24/2011 1:00:00 AM
China Biotech Week In Review: Sinovac Biotech Receives Some Good News - Seeking Alpha, 10/15/2011 9:29:00 PM
WuXi PharmaTech Shares Popped: What You Need to Know - The Motley Fool, 10/14/2011 5:22:00 AM
WuXi PharmaTech Acquires Abgent, a Leading Producer of Biological Research Reagents - PR Newswire, 10/13/2011 2:00:00 PM
Stock
14 years ago
Charles River to buy WuXi Pharma for $1.6 billion
On Monday April 26, 2010, 2:13 pm
By Esha Dey
BANGALORE (Reuters) - U.S. clinical research company Charles River Laboratories International (NYSE:CRL - News) agreed to buy Chinese rival WuXi PharmaTech (NYSE:WX - News) for $1.6 billion to expand its presence in China and deepen its expertise in drug-discovery services.
Charles River is focused on pre-clinical and early-stage research, while Shanghai-based WuXi -- one of the biggest Chinese clinical research organizations (CRO) -- is active in drug chemistry, such as making molecules to synthesize a drug.
Charles River will offer $21.25 per WuXi American Depositary Share in cash and stock, representing a premium of 28 percent to WuXi's Friday closing price.
Each WuXi ADS will get $11.25 in cash and $10 of Charles River common stock, the companies said in a joint statement.
However, WuXi shares were trading up only 19 percent at $19.70 in morning trade Monday on the New York Stock Exchange, indicating investor skepticism about the deal.
Charles River shares fell 14 percent to $34.09 on the New York Stock Exchange on concerns of the U.S.-based company's ability to execute and integrate such a big deal.
Robert W. Baird analyst Eric Coldwell said the deal value was "a bit aggressive," adding that given the disparate geographies, cultures and services, he sees more than a modest risk in integration.
"We expect some, if not majority of WuXi shareholders, will sell their positions on WuXi post merger given the likely slower growth of the combined entity versus WuXi standalone," said Susquehanna Financial Group analyst Ding Ding in a note.
LONG-TERM GAINS
Analysts broadly agree that the deal made sense thematically due to WuXi's exposure in the fast-growing Chinese market and limited overlap between the service offerings of the two firms. Even though short-term risks remain, the deal can prove to be beneficial in the long term.
"We are increasingly convinced China is becoming a very important market for pharma and therefore view the combination as a long-term positive for Charles River, given we believe WuXi is the leading player and brand name in China," William Blair and Co analyst John Kreger said.
Large, concentrated populations, access to patients where certain diseases -- like malaria -- are widespread and an opportunity to run trials in markets with a rising demand for medicines are what make markets like China attractive destinations for the outsourced drug research industry.
"Outsourcing is going global and China is increasingly important, though Chinese firms still face headwinds, which Charles River's global brand and image could mitigate," Baird's Coldwell said.
Research service providers to drugmakers have seen their growth rate slow over the past one year, pushing them to look for newer strategies like increased specialization in specific areas and tap faster growth areas like the emerging markets.
Monday's deal is a proof of a growing trend within the CRO industry that is seeing bigger U.S. players specialize more to offer high-end services to their clients, with pre-clinical and early-stage focused Charles River and Covance Inc (NYSE:CVD - News) investing heavily in drug discovery services.
Thus Shanghai-based WuXi is a strategic fit for Charles River that is trying to expand into more upstream services in the drug research pathway.
"(The deal would) give Charles River medicinal development capabilities, which is currently outside of Charles River's core competency," Deutsche Bank analyst Ross Muken said.
DEAL TO BOOST MARGINS
Charles River expects the deal to improve its margins, it said on a conference call with analysts.
For 2009, WuXi had an adjusted gross margin of 42.3 percent, while Charles River had a gross margin of 35.7 percent.
Charles River has received a financing commitment for a $1.25 billion credit facility from JP Morgan Chase and Bank of America-Merrill Lynch.
The combined company will be led by Charles River Chief Executive James Foster, while WuXi PharmaTech's Ge Li will become corporate executive vice president. Li will also be the president of global discovery and China services, a new segment.
Q1 PROFIT FALLS
Separately, Charles River reported a lower first-quarter profit, impacted by weak sales volume and higher costs related to the company's enterprise resource planning initiative.
On a non-GAAP basis, net income was $29.3 million, or 45 cents a share, compared with $38.2 million for the same period in 2009, a fall of 23.2 percent.
Quarterly net sales fell 1.4 percent to $297.3 million.
Analysts on average expected first-quarter earnings of 47 cents a share, excluding special items, on sales of $296.8 million, according to Thomson Reuters I/B/E/S.
Charles River was one of the worst affected among its peers and had a tough run in 2009 as drug developers tended to halt early-stage research to conserve cash rather than stopping the development of late-stage drugs that could reach the market faster.
However, the company is finally seeing early signs of demand stabilizing and Baird's Coldwell said he expects to see modest improvement in bookings and significant decreases in cancellations through 2010.
On the call, the company said it sees 2010 sales of $1.51 billion to $1.56 billion for the combined company and expects a 2 percent to 3 percent rise in second-quarter sales from the first quarter.
(Additional reporting by Sakthi Prasad; Editing by Muralikumar Anantharaman, Sharon Lindores, Unnikrishnan Nair, Gopakumar Warrier)
surf1944
14 years ago
2:04AM WuXi PharmaTech enters into collaboration with Johnson & Johnson Pharmaceutical R&D, a division of Janssen Pharmaceutica for preclinical services and training (WX) 16.14 : Co announces it has reached an agreement with Johnson & Johnson Pharmaceutical Research & Development, a division of Janssen Pharmaceutica N.V., to collaborate in the area of preclinical services. Under the agreement, WuXi PharmaTech will become a provider of toxicology and other non-clinical services to JANSSEN. In addition, JANSSEN will provide training and other services, reimbursed by WuXi, to establish the GLP quality system and technical capabilities to meet the international standards at WuXi's toxicology facility in Suzhou, China
surf1944
14 years ago
WuXi AppTec Receives 2009 Schering-Plough Excellence Award
Press Release
Source: WuXi PharmaTech (Cayman) Inc.
On 9:40 pm EDT, Thursday October 29, 2009
Companies:Wuxi Pharmatech (Cayman) Inc.
SHANGHAI, Oct. 30 /PRNewswire-Asia/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX - News), a leading pharmaceutical, biotechnology, and medical device research and development outsourcing company, with operations in China and the United States, today announced that it had received the 2009 Excellence Award from Schering-Plough.
surf1944
15 years ago
WuXi 2Q profit rises on margins, lower costs
WuXi PharmaTech's 2nd-quarter profit rises on better margins, lower expenses
On Wednesday August 12, 2009, 9:21 am EDT
Companies:WuXi PharmaTech (Cayman) Inc.
NEW YORK (AP) -- WuXi PharmaTech Inc., which provides research and development outsourcing for the pharmaceutical and biotechnology sectors, said Wednesday its second-quarter profit rose 72 percent on better margins and lower expenses.
The company earned $14.7 million, or 20 cents per American Depository Share, compared with profit of $8.5 million, or 12 cents per ADS, a year ago. Excluding charges, the company earned 24 cents per ADS
Revenue fell 3 percent to $67 million from $69,1 million.
Analysts polled by Thomson Financial expected a profit of 12 cents per share on revenue of $63.7 million.
Laboratory services revenue rose 19 percent to $61.5 million while manufacturing services fell 69 percent to $5.5 million. Operating expenses fell 5 percent to $13.4 million.
Looking ahead, the company expects full-year revenue between $265 million and $275 million, while analysts expect $267.8 million.
WuXi is headquartered in Shanghai, China, and incorporated in the Cayman Islands
surf1944
15 years ago
WuXi PharmaTech to Present at Third Annual Jefferies Healthcare Conference
On Tuesday June 16, 2009, 8:00 am EDT
SHANGHAI, June 16 /PRNewswire-Asia/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX - News) today announced that Edward Hu, the Company's Chief Operating Officer and acting Chief Financial Officer, will present at the Third Annual Jefferies Healthcare Conference in New York on Wednesday, June 17, 2009, at 11:45 am Eastern Daylight Savings Time.
The Company will broadcast its presentation. The public may access the broadcast through the Investor Relations section of the Company's web site: 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 .
surf1944
16 years ago
WuXi PharmaTech Announces Second Quarter 2008 Results
Wednesday August 13, 6:00 pm ET
SHANGHAI, China, Aug. 13 /Xinhua-PRNewswire/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX - News), a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, today announced its selected unaudited financial results for the second quarter ended June 30, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040705/CNM002LOGO )
Highlights for Second Quarter 2008:
-- Total net revenues increased 134% to $70.8 million in the second
quarter 2008 from $30.2 million in the second quarter 2007.
-- Non-GAAP operating income increased 90% to $17.0 million in the second
quarter 2008 from $8.9 million in the second quarter 2007; second
quarter 2008 GAAP operating income was $7.7 million.
-- Non-GAAP net income increased 81% to $15.5 million in the second
quarter 2008 from $8.6 million in the second quarter 2007; second
quarter 2008 GAAP net income was $8.5 million.
-- Second quarter 2008 non-GAAP diluted earnings per ADS were $0.21,
compared to $0.13 in the second quarter 2007; second quarter 2008 GAAP
diluted earnings per ADS were $0.12.
Numbers presented on a non-GAAP basis exclude share-based compensation expenses, amortization of acquired intangible assets and deferred tax impact on acquired intangible assets. The non-GAAP measures are described below and reconciled to the corresponding GAAP measure in the section below titled "Use of Non-GAAP Financial Measures."
Commenting on the second quarter 2008 results, Dr. Ge Li, Chairman and Chief Executive Officer of WuXi PharmaTech said, "Despite a softening global economy, the global trend in R&D outsourcing continues to fuel our business, enabling us to more than double our revenue from the second quarter 2007. We remain agile to meet and anticipate customer needs, expanding and evolving our services to enable integrated total solutions to a broader pharmaceutical, biotechnology and medical device customer base."
"During this quarter, WuXi continued to build on its strong base in lab services business while capturing growth from its research manufacturing business in China. In addition, our efforts to build a world class manufacturing operation are paying off, with this segment demonstrating 400% growth from second quarter one year ago," said Dr. Li. "We are confident that the thesis underlying our acquisition of AppTec remains intact as we are committed to our long-term vision of being the partner of choice to our customers, offering services along the continuum of drug discovery and product development to help our partners improve the success of discovery and shorten the time of development." Finally, Dr. Li shared that "We recently added a number of seasoned senior executives to complement the management team who will help further drive long-term growth on multiple fronts."
Benson Tsang, Chief Financial Officer of WuXi PharmaTech continued, "Underlying our revenue growth in the second quarter 2008 is the continued success of our core laboratory services. The lab services business maintains a 50% non-GAAP gross margin, which remains in line with past performance despite macro-economic challenges." Mr. Tsang also reported, "Our GAAP net income this quarter reflected $5.9 million non-cash expenses related to the amortization of acquired intangible assets from the AppTec acquisition."
Second Quarter 2008 Unaudited Financial Results
Net Revenues. Net revenues for the second quarter 2008 were $70.8 million, representing a year-over-year increase of 134% from $30.2 million in the second quarter 2007.
Net revenues from laboratory services increased 80% to $45.2 million in the second quarter 2008 from $25.1 million in the second quarter 2007. Net revenues from manufacturing services increased 400% to $25.6 million in the second quarter 2008 from $5.1 million in the second quarter 2007.
Gross Profit and Gross Margins. On a non-GAAP basis, gross profit for the second quarter 2008 was $28.6 million, up 84% from the second quarter 2007. Our overall non-GAAP gross margin was 40%, laboratory service non-GAAP gross margin was 50% and manufacturing non-GAAP gross margin was 24%. GAAP gross profit for the second quarter 2008 was $22.1 million and overall GAAP gross margin was 31%, laboratory service GAAP gross margin was 39% and manufacturing GAAP gross margin was 17%.
Operating Expenses. Non-GAAP operating expenses increased 75% to $11.6 million in the second quarter 2008 from $6.6 million in the second quarter 2007. Non-GAAP operating expenses as a percentage of total net revenues decreased to 16% in the second quarter 2008 from 22% over the same period last year. GAAP operating expenses increased 85% to $14.4 million in the second quarter 2008 from $7.8 million in the second quarter 2007. GAAP operating expenses as a percentage of total net revenues decreased to 20% in the second quarter 2008 from 26% over the same period last year.
Operating Income and Operating Margin. Non-GAAP operating income was $17.0 million in the second quarter 2008, a 90% increase from $8.9 million in the second quarter 2007. Non-GAAP operating margin was 24% in the second quarter 2008, down from 30% in the second quarter 2007. GAAP operating income for the second quarter 2008 was $7.7 million. GAAP operating margin was 11% in the second quarter 2008, down from 25% in the second quarter 2007 primarily due to amortization of acquired intangible assets.
Other Income (expenses), net. Other losses of $2.3 million were primarily caused by the unrealized mark-to-market accounting losses from our forward currency contracts.
Net Income. Non-GAAP net income for the second quarter 2008 grew 81% to $15.5 million, compared to the non-GAAP net income of $8.6 million in the second quarter 2007. Non-GAAP net profit margin was 22% in the second quarter 2008. GAAP net income for the second quarter 2008 increased 19% to $8.5 million from $7.1 million for the second quarter 2007. GAAP net profit margin was 12% in the second quarter 2008. Non-GAAP diluted earnings per ADS were $0.21 compared to $0.13 in the second quarter 2007. GAAP diluted earnings per ADS were $0.12 in the second quarter 2008 compared to $0.11 in the second quarter 2007.
2008 Guidance
We maintain our 2008 annual consolidated net revenues guidance in the range from $280 million to $300 million.
Conference Call
Following the earnings announcement, WuXi PharmaTech senior management will host a conference call at 8:00 am (Eastern) / 5:00 am (Pacific) / 8:00 pm (Beijing/Hong Kong) on Thursday, August 14, 2008 to discuss its 2008 second quarter financial results and recent business activities. The conference call may be accessed by calling (US) +1 913-981-5522 or +1 800-289-0528 / (HK) 800- 965-503 / (China, Northern Region) 10-800-714-0970/ (China, Southern Region) 10-800-140-0945 / (UK) 0-800-051-7166. A telephone replay will be available shortly after the call until September 14, 2008 at (US) 888-203-1112/ (HK) 800-901-108 / (China, Southern Region) 10-800-140-1178 / (China, Northern Region) +1-719-457-0820 / (UK) +0808-101-1153. Passcode: 2740550.
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.wuxipharmatech.com .
surf1944
16 years ago
Warburg Pincus Acquires 5.4% of WuXi PharmaTech's Outstanding Ordinary Shares from United Overseas Bank
Monday July 14, 4:30 pm ET
SHANGHAI, China, July 14 /Xinhua-PRNewswire/ -- WuXi PharmaTech (NYSE: WX - News), a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, today announced that Warburg Pincus, the global private equity firm, has acquired 5.4% of its outstanding ordinary shares from affiliates of United Overseas Bank.
At the closing of the transaction on July 2, 2008, affiliates of United Overseas Bank (UOB), one of the early venture investors of WuXi PharmaTech, sold to Warburg Pincus a total of 26,808,496 ordinary shares, equivalent to 3,351,062 American Depositary Shares. A beneficial ownership statement Schedule 13D with respect to this acquisition was filed with the Securities and Exchange Commission.
''I am very delighted that Warburg Pincus has decided to invest in WuXi. As a premier global private equity firm with tremendous experience in the life science industry, Warburg Pincus not only will strengthen our investor base, but more importantly we believe that it will provide strategic and business assistance to us,'' commented Dr. Ge Li, Chairman and CEO of WuXi PharmaTech.
''We are pleased to become a shareholder of WuXi PharmaTech which is a clear leader in the rapidly growing drug and medical device outsourcing industry. WuXi has an impressive track record of growth and a distinguished reputation for customer service,'' said Mr. Stewart Hen, Managing Director of Warburg Pincus based in New York. Added Mr. Dai Feng, Principal of Warburg Pincus based in China, ''With our global expertise in healthcare and our deep understanding of the off-shore operating environment, we hope to assist WuXi in achieving its strategic and financial goals.''
surf1944
16 years ago
WuXi PharmaTech (NYSE: WX) Wins the 2008 Frost & Sullivan Award for Best in Class Outsourced R&D in Pharmaceuticals and Biotechnology
Friday July 11, 10:31 am ET
SHANGHAI, China, July 11 /Xinhua-PRNewswire/ -- WuXi PharmaTech (NYSE: WX - News), a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, today proudly announced that it has won the 2008 Frost & Sullivan Award for Best in Class Outsourced R&D in Pharmaceuticals and Biotechnology.
Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. The Frost & Sullivan Award for Best in Class Outsourced R&D in Pharmaceuticals and Biotechnology is awarded to the company that has demonstrated commendable success in forming strategic partnerships with global clients for outsourced laboratory and research manufacturing services in drug discovery and development in pharmaceuticals and biotechnology.
Quality of scientists and personnel, service portfolio, quality of services, speed of service delivery, cost competitiveness, past experience and referrals are the selection criteria that Frost & Sullivan used. According to Frost & Sullivan, WuXi has excelled in the delivery of high-quality services in a timely manner and at competitive costs through a team of proficient scientists supported by world-class management.
"Until January, 2008, WuXi PharmaTech had provided services to more than 700 global clients, with coverage of pharmaceutical, biotechnology and medical devices. High proportion of repeat and referral customers is a testament to its focus on customer satisfaction and operation excellence," said Frost & Sullivan Leader of China Healthcare Operation Mr. Xuchao Hou. "The main contributing factors to this impressive reward have been exceptional leverage of China's advantage, high technical expertise and world class management, robust expanding service portfolio, adherence to strict quality control and commitment to intellectual property rights protection."
"We are honored to receive this prestigious award in recognition of our research driven, customer focus and continuous improvement practices in helping our customers to improve the success of research and shorten the time of development," commented Dr. Ge Li. "We will continue expanding our service capabilities and capacity to better serve our global pharmaceutical and medical device customers."
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 pharmaceutical, biotechnology and medical device companies 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. For more information, please visit: http://www.wuxipharmatech.com .
About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1,000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com .
surf's up......crikey
surf1944
16 years ago
WuXi PharmaTech (NYSE: WX) Named the Most Innovative Company in China and CEO Dr. Li the Most Innovative Leader of Chinese Enterprises
Thursday July 10, 8:49 am ET
SHANGHAI, China, July 10 /Xinhua-PRNewswire/ -- WuXi PharmaTech (NYSE: WX - News), a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, today announced that it was awarded one of the top 20 "China Most Innovative Enterprises" and its CEO Dr. Ge Li was named one of the top 10 "Most Innovative Leaders of Chinese Enterprises" at the 8th China Enterprise Innovation Forum held in Beijing last month.
Having successfully run for seven years, China Enterprise Innovation Forum aims to stimulate innovation by Chinese companies and help construct China into an innovative country. Commemorating the 30th anniversary of China's reform and opening up, this year's annual forum was attended by a number of high-ranking government officials. The nomination committee consisting of various leading experts and scholars from the National Development and Reform Commission, State-owned Assets Supervision and Administration Commission of the State Council, Research Office of the State Council, Chinese Academy of Social Sciences and Peking University, took six months to select the winning companies and individuals. The selection was based on four criteria: innovation, public trust, impact and enabling force.
WuXi PharmaTech won the award because it is the pioneer and leader in China's rapidly growing pharmaceutical R&D outsourcing service industry; a research driven and customer-focused company that has shown the world that high-quality drug R&D and strict IP protection in China are attainable; a responsible corporate citizen committed to environmental and social welfare; and it is an undeniable force that is replacing the "Made in China" model with "Innovated in China".
"It is a great honor that WuXi is named one of the top-20 most innovative companies in China. I am very glad that our integrated service business model is recognized once again by the Chinese government as an innovation. China is becoming an increasingly important part of the global drug and medical device value chain. I hope with more government support the modern service industry in China will become more sophisticated and mature," commented Dr. Ge Li, Chairman and CEO of WuXi PharmaTech.
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 pharmaceutical, biotechnology and medical device companies 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. For more information, please visit: http://www.wuxipharmatech.com .
For more information, please contact:
Sherry Shao
Tel: +86-21-5046-4002
Email: pr@pharmatechs.com
surf1944
16 years ago
Last Call: WuXi down on disappointing AppTec sales
Wednesday May 28, 5:19 pm ET
Shares of WuXi PharmaTech fall over 1st-quarter revenue disappointment in AppTec unit
NEW YORK (AP) -- Shares of WuXi PharmaTech Inc., a China-based pharmaceutical and biotechnology research and development outsourcing company, fell Wednesday as some analysts were disappointed by first-quarter results at the company's recently acquired AppTec Laboratory Services Inc. unit.
On Tuesday, WuXi said its profit that more than doubled in the first quarter, beating Wall Street estimates. Additionally, the company reaffirmed its 2008 revenue outlook.
However, AppTec collected $11 million in revenue, which Credit Suisse analyst J. Du characterized as weak considering that WuXi has previously estimated full-year revenue from the unit of between $85 million and $95 million.
WuXi completed its $151 million acquisition of St. Paul, Minn.-based AppTec at the end of January. AppTec provides testing, research and development, and biologics manufacturing services.
Citi Investment Research analyst Hoki Luk noted that AppTec's manufacturing gross margin was in the single digits in the quarter, compared with 16 percent in the prior-year period, which he said was much lower than expected "and meant aggressive improvement would be needed."
Nevertheless, Luk kept a "Buy" rating and $28 price target on WuXi shares.
American Depositary Shares of WuXi fell $1, or 4.6 percent, to $20.76 Wednesday.
surf1944
16 years ago
WuXi Pharmatech Reports Another Healthy Quarter
WuXi PharmaTech (WX), a Chinese contract research organization [CRO] put out another good quarter, but this stock never seems to trade in a logical manner; perhaps the gross margins or lack of "increased" guidance is caused the stock to fall 3% yesterday. It just might be too small or unknown to be attracting enough attention or to trade "normally".
Net revenues increased 68.7% to $57.1 million in the first quarter 2008 from $33.8 million in the first quarter 2007. This increase was primarily driven by the strong organic growth and the addition of US-based services 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. (keep in mind some of that growth is not organic, i.e. due to acquisition)
Net revenues from laboratory services increased 77.4% to $38.5 million in the first quarter 2008 from $21.7 million in the first quarter 2007, driven by a growing demand for our core discovery chemistry and process research services, and testing services from the AppTec acquisition.
Net revenues from manufacturing services increased by 53.3% to $18.6 million in the first quarter 2008 from $12.1 million in the first quarter 2007, primarily due to an increase in the number and scope of projects.
Overall gross margin was 42.5% in the first quarter 2008. Our laboratory services margin was 49.2% and manufacturing margin was 28.7% in the first quarter 2008. While our laboratory services margin remained robust, the manufacturing services margin was affected by the low utilization in our biologics manufacturing facility. Looking forward, we expect the utilization rate to improve in later quarters. (this is down from previous quarters)
Net income increased by 131.9% to $13.9 million for the first quarter 2008 from $6.0 million for the first quarter 2007. Net profit margin increased to 24.3% in the first quarter 2008 from 17.7% in the first quarter 2007. Non-GAAP net income, as defined below, for the first quarter 2008 grew by 85.3% to $17.3 million, compared to the non-GAAP net income of $9.3 million in the first quarter 2007. Diluted earnings per ADS were $0.19 and non-GAAP diluted earnings per ADS were $0.24 in the first quarter 2008. (analysts at $0.15)
Guidance
We maintain our 2008 annual consolidated net revenues guidance in the range from $280 million to $300 million.
I've held this stock since last November, and so far really no benefit. But I continue to like the story so I am keeping it, although it holds a very minor weight in the portfolio. Analysts are in for a $0.74 estimate for 2008 so with this beat of 4 cents we might be headed closer to $0.80 EPS for the year and at $21 this gives us a forward PE of 26 for almost double the growth rate.
While you could throw ANY Chinese stock out there and say "it will grow, it has to just by demographics alone" - and to some degree that will be true, I'm trying to find names which fill more long lasting niches, especially in the business to business end. After seeing WuXi on Zach's blog in the past few weeks, this one really struck a chord with me. WuXi is a contract research organization [CRO] for companies - think outsourcing. I have invested for my own personal account in a similar company in Ireland called ICON (ICLR), which if you pull up a 2 year chart only continues to perform year in and year out. There are also a few slower growing US competitors to compare WuXi against.
http://seekingalpha.com/article/79231-wuxi-pharmatech-reports-another-healthy-quarter?source=yahoo
surf1944
16 years ago
This is a short sale, going lower in the near term:
WuXi PharmaTech (Cayman) Inc. Announces Filing of Registration Statement For Follow-On and Secondary Offering
Friday April 4, 12:24 pm ET
SHANGHAI, China, April 4, 2008 /Xinhua-PRNewswire-FirstCall/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX - News; "WuXi PharmaTech"), a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, today announced that it has filed a Registration Statement on Form F-1 with the Securities and Exchange Commission for a proposed follow-on and secondary public offering of American Depositary Shares. The securities to be sold in the proposed offering will include shares to be issued and sold by the company as well as shares to be sold by certain shareholders.
Credit Suisse Securities (USA) LLC and JP Morgan Securities, Inc. will act as lead underwriters and joint book-runners in the offering. Copies of the preliminary prospectus, when available, may be obtained by contacting Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One Madison Avenue 1B, New York, NY 10010; phone 1-800-221-1037; or by contacting JP Morgan Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245; phone 1-866-430-0686.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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