WuXi PharmaTech Will Focus U.S. Operations On Laboratory Testing Services
WuXi PharmaTech (Cayman) Inc., a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States, recently announced it will dedicate its Philadelphia facility to the Company's expanding biologics testing, cell banking and cell therapy services, and as of December 31, 2008, WuXi will discontinue its U.S. biologics manufacturing operations. In conjunction, approximately 100 biologics manufacturing and supporting positions at the Philadelphia facility will be eliminated through workforce reduction and employee attrition.
For 2008, WuXi anticipates biologics manufacturing revenues will be less than four percent of total expected annual revenue. Beginning in 2009, WuXi expects to realize approximately $10M in annual cost savings resulting from this change.
Dr. Ge Li, Chairman and Chief Executive Officer of WuXi PharmaTech, said, "WuXi has been fortunate, even in current market conditions, to continue to experience rapid growth in our global business. This growth reflects our reputation for providing high-quality laboratory services to our clients in a cost-efficient manner. With our continued focus on growth and profitability, we are moving to mitigate operating risks in our biologics manufacturing operations, all of which are based in Philadelphia, and are shifting our Philadelphia-based resources to biologics testing and laboratory services, which continue to show strong customer demand. Our biologics testing, cell banking and cell therapy operations in Philadelphia and our St. Paul and Atlanta operations will be unaffected by these actions."
WuXi expects to record (i) cash restructuring charges, estimated to total approximately $2.5 to $3.5M, consisting primarily of severance and other employee-related charges and to be payable over the next few months; and (ii) non-cash charges for impairment of certain fixed and intangible assets, including goodwill. WuXi currently is working with external consultants to determine an estimate for the non-cash impairment charges as a result of the restructuring.
For more information about the replay and conference call held on December 2,2008 visit; 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 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/ .
SOURCE: WuXi PharmaTech Inc.