|WuXi PharmaTech CEO Ge Li|
Chinese CRO WuXi PharmaTech ($WX) notched another strong sales quarter, boosting its revenue by 11.3% thanks to escalating demand for its manufacturing services.
Net revenue came in at $146.7 million on the quarter, driven by 8.3% growth in lab services, which brought in $105.5 million, and a 19.7% leap in manufacturing, which came in at $41.2 million. WuXi's in-China CRO sales jumped 10.3% to $82.1 million, and its U.S. division grew 1.7% to $23.4 million. The company reported a $13.9 million charge related to foreign exchange rates, dragging profits down 17.9% to $17.8 million on an otherwise impressive quarter.
WuXi is keeping its 2014 projections intact, expecting full-year revenue to come in between $660 million and $670 million, good for up to 16% annual growth.
The CRO has been spending money to broaden its reach in the U.S. and China on both the clinical and manufacturing fronts. WuXi expects to spend about $85 million on capital expenditures in 2014--50% more than the year before--to keep its growth rolling, CEO Ge Li said.
"The favorable biotech funding environment in the U.S. will generate new business throughout our organization in the next few years as our integrated drug discovery and development platform enables biotech companies to utilize our capabilities and capacity to rapidly advance their product pipelines," Li said in a statement. "... The company remains focused on its mission of building the best open-access platform of services and technologies to enable anyone and any company to discover, develop, and commercialize healthcare products to benefit the world's patients."
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