WuXi Pharmatech 1Q Profit Rises 32%; Manufacturing

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WuXi Pharmatech (Cayman) Inc.‘s (WX) first-quarter earnings rose 32%, beating views, on consistent growth in laboratory services and a surge in its manufacturing-services revenue.

The contract-research firm also said 2010 revenue will be at the upper end of March‘s downbeat view for $310 million to $320 million.

Last month, Charles River Laboratories International Inc. (CRL) agreed to buy the Chinese pharmaceutical research outsourcing firm for $1.6 billion.

Big pharmaceutical companies‘ cuts to their own research programs meant they focused on their own clinical trials and marketing while outsourcing development and testing services to contractors like WuXi. However,Software Localization, the cuts grew significant enough to deplete the overall pool of business opportunities for the contract firms.

WuXi posted a profit of $15.5 million,Business process outsourcing company, or 21 cents per American depositary share, from $11.7 million, or 16 cents per ADS, a year earlier. Excluding items share-based compensation and amortization, earnings rose to 25 cents from 20 cents.

Revenue increased 36% to $80.6 million. Laboratory services posted a consistent 18% sales growth,Pharmaceutical Outsourcing, and the figure soared more than fivefold to $13.6 million in manufacturing services on improving demand and delivery of a large order, which had been weak in the previous period.

Analysts surveyed by Thomson Reuters expected 19 cents on the bottom line with $78 million in revenue.

Gross margin fell to 37.7% from 38.4%.

WuXi ADS were up 1.8% at $18.30 after hours.