WuXi reports 2Q revenue growth after Charles River deal fails
Shanghai-based WuXi PharmaTech will receive a breakup fee of $30 million from Charles River Laboratories International, whose previously announced purchase of Wuxi was terminated by mutual agreement due to Charles River shareholder opposition.
"WuXi's strategy has not changed. Our goal is, and has long been, to build a broad, integrated R&D service platform designed to help our customers improve the success of research and shorten the time of new product development," said Dr. Ge Li, chairman and CEO. "While we are disappointed that this transaction could not be completed, WuXi remains well positioned to meet our customers' needs and to continue to grow and expand as a standalone company."
Wuxi reported that second-quarter 2010 net revenues increased 21% year over year to $81 million. Laboratory Services net revenues increased 18% and Manufacturing Services net revenues jumped 55%. Revenue growth in Laboratory Services was strong in both discovery chemistry and downstream services and in both China and the United States.
Revenue growth in Manufacturing Services was driven by increasing demand for clinical trial supplies. Second-quarter 2010 GAAP net income declined 6% year over year to $13.8 million.