|WuXi PharmaTech CEO Ge Li|
Chinese CRO WuXi PharmaTech ($WX) is forecasting a better-than-expected 2014 after a strong third quarter and some timely deals, moving into the new year with hopes for continued global growth.
WuXi's quarterly revenue jumped 18% to $173.6 million in Q3, a gain driven by 16% growth in its lab services business and a 23% leap in manufacturing. Net income came in at $32 million on the quarter, a 5% increase over last year.
Now WuXi is slightly increasing its full-year projections, accounting for its September buyout of CRO XenoBiotic Laboratories and its guidance-exceeding third-quarter performance. The company expects to pull in as much as $672 million in 2014, an improvement over its previously announced range of between $665 million and $670 million.
"We continue to believe that our future is bright," WuXi CEO Ge Li said in a statement. "We expect particularly strong growth in small-molecule manufacturing and biologics for the next several years, as we capitalize on the growing late-stage and commercial product pipeline in small-molecule manufacturing and the ramp-up of our biologics manufacturing business."
WuXi, China's largest CRO, has been steadily growing its share of the global R&D market thanks to escalating demand for its discovery services and a broad-based expansion of its manufacturing platform. The company has also invested heavily in genomics, constructing China's first CLIA-certified lab in Shanghai and partnering with the likes of Illumina ($ILMN), Foundation Medicine ($FMI) and Pacific Biomarkers to flesh out its offerings in the field.
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