WuXi continues strong growth
pharmafile | August 14, 2012 | News story | Manufacturing and Production | China, WuXi
Chinese contract research firm Wuxi saw its revenue grow strongly in the second quarter, with its laboratory services playing a lead role.
Revenues grew 28.9% to $130 million, exceeding its forecast of $124-129 million
WuXi has now built a broad portfolio of services from discovery to pre-clinical development, clinical trial management and clinical and commercial GMP manufacturing.
The company says its aims is to become the “backbone of the life-science R&D services industry in China,” and its Chinese leadership team are well-placed to exploit the country’s potential.
WuXi Pharmatech was founded in 2000 by Dr. Ge Li, and he remains the company’s chairman and chief executive. Dr. Ge Li earned his doctorate in organic chemistry from Columbia University in the US and founded drug discovery firm Pharmacopeia, Inc. in Princeton before returning to China to set up WuXi.
Despite the strong expansion in the business, it is facing pressure on its profits from the growing labour costs in China.
This is one of the chief factors – along with slowing demand from austerity hit western markets – behind a general slow down in China’s economy.
The firms says it will work to stabilise margins by “improving productivity and building differentiated businesses that command premium pricing.”
China-based laboratory services revenues grew 27.2%, led by strong growth of analytical development services, DMPK/ADME, biology, formulation, toxicology, and bioanalytical services.
The firm is not solely dependent on its operations in China, as it also has a US facility. US lab services revenues increased 17.7%, led by double-digit growth in testing revenue for both biologics and medical devices.
The company had agreed a deal to be acquired by Charles River Laboratories in April 2010. However the deal was eventually rejected by Charles River shareholders, resulting in a $30 million breakup fee being paid to WuXi.
Andrew McConaghie
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