0001193125-13-233050.txt : 20130523 0001193125-13-233050.hdr.sgml : 20130523 20130523135649 ACCESSION NUMBER: 0001193125-13-233050 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20130523 FILED AS OF DATE: 20130523 DATE AS OF CHANGE: 20130523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WuXi PharmaTech (Cayman) Inc. CENTRAL INDEX KEY: 0001403132 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33623 FILM NUMBER: 13867700 BUSINESS ADDRESS: STREET 1: 288 FUTE ZHONG ROAD STREET 2: WAIGAOQIAO FREE TRADE ZONE CITY: SHANGHAI STATE: F4 ZIP: 200131 BUSINESS PHONE: 86-21-5046-1111 MAIL ADDRESS: STREET 1: 288 FUTE ZHONG ROAD STREET 2: WAIGAOQIAO FREE TRADE ZONE CITY: SHANGHAI STATE: F4 ZIP: 200131 6-K 1 d543691d6k.htm FORM 6-K Form 6-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2013

Commission File Number: 001-33623

 

 

WuXi PharmaTech (Cayman) Inc.

 

 

288 Fute Zhong Road, Waigaoqiao Free Trade Zone

Shanghai 200131

People’s Republic of China

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F  x Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.    Yes  ¨    No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- N/A

 

 

 


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WuXi PharmaTech (Cayman) Inc.

Form 6-K

TABLE OF CONTENTS

 

     Page  

Signature

     3   

Exhibit 99.1 — Press Release Dated May 13, 2013

     4   

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    WuXi PharmaTech (Cayman) Inc.
    By:  

/s/ Edward Hu

    Name:   Edward Hu
    Title:   Chief Financial Officer

Date: May 23, 2013

 

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Exhibit 99.1

WuXi PharmaTech Announces First-Quarter 2013 Results

SHANGHAI, China, May 13, 2013 /Xinhua-PRNewswire/ — WuXi PharmaTech (Cayman) Inc. (NYSE: WX), a leading research and development outsourcing company serving the pharmaceutical, biotechnology, and medical device industries, with operations in China and the United States, today announced its financial results for the first quarter of 2013.

Highlights

 

 

Net Revenues Increased 11.7% Year Over Year to $131.9 Million

 

 

Laboratory Services Net Revenues Grew 12.5% Year Over Year to $97.5 Million

 

 

China-Based Laboratory Services Net Revenues Increased 15.5% Year Over Year to $74.5 Million

 

 

U.S.-Based Laboratory Services Net Revenues Increased 3.8% Year Over Year to $23.0 Million

 

 

Manufacturing Services Net Revenues Grew 9.6% Year Over Year to $34.4 Million

 

 

GAAP Diluted Earnings Per ADS Grew 7.2% Year Over Year to $0.30

 

 

Non-GAAP Diluted Earnings Per ADS Increased 7.5% Year Over Year to $0.35

 

 

Company Reconfirms Full-Year 2013 Guidance

Management Comment

“I am pleased to announce that WuXi began 2013 with a solid first quarter,” said Dr. Ge Li, Chairman and Chief Executive Officer. “We achieved 11.7% year-over-year revenue growth, 7.2% GAAP diluted EPS growth, and 7.5% non-GAAP diluted EPS growth in the quarter, exceeding our previous guidance in all three measures. This result gives us confidence to reconfirm our guidance for full-year 2013.

“WuXi is succeeding on several fronts at once,” Dr. Li continued. “We are achieving double-digit, broad-based revenue growth, while effectively improving operating efficiency and controlling our costs to maintain stable margins. We are investing in capabilities and capacity to sustain strong revenue and earnings growth for years to come. In so doing, WuXi is making progress toward the goal of building an open-access technology platform and integrated services offerings that will enable anyone and any company to discover and develop medicines efficiently and cost-effectively. And we are returning capital to shareholders through share purchases.”

First-Quarter 2013 GAAP Results

First-quarter 2013 net revenues increased 11.7% year over year to $131.9 million. Revenue growth in Laboratory Services of 12.5% was driven by our comprehensive and integrated discovery and development services, primarily in China. Revenue growth of 9.6% in Manufacturing Services was driven by increased demand for clinical-trial materials in our small molecule research manufacturing business and process-chemistry services. We also began biologics manufacturing in the first quarter.

First-quarter 2013 GAAP gross profit increased 13.2% year over year to $47.4 million due to 11.7% revenue growth, improved operating efficiency, and effective cost control. Gross margin increased year over year to 36.0% from 35.5%. Gross margin in Laboratory Services increased year over year to 37.6% from 37.1% mainly due to improved productivity, partially offset by the effects of increasing labor costs in China, appreciation of the RMB versus the U.S. dollar, investments in new businesses, and lower pricing in synthetic chemistry services. Gross margin in Manufacturing Services increased year over year to 31.4% from 31.0%.

First-quarter 2013 GAAP operating income increased 11.4% year over year to $23.0 million due to the 13.2% increase in gross profit, offset by a 14.8% increase in operating expenses, particularly selling and marketing expenses and research and development expenses. Operating margin decreased slightly to 17.4% from 17.5% due to the increase in operating expenses, partially offset by higher gross margin.

 

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First-quarter 2013 GAAP net income increased 3.4% year over year to $21.7 million due to the 11.4% year-over-year increase in operating income, offset by a 39.9% increase in income tax expense primarily due to the increase in taxable income and the one-time benefit of reversal of an uncertain tax provision in the first quarter of 2012.

First-quarter 2013 GAAP diluted earnings per ADS increased 7.2% to $0.30 due to the 3.4% increase in net income and a lower number of outstanding ADSs as a result of the company’s purchase of about 5 million ADSs in 2012. First-quarter 2013 GAAP comprehensive income increased 8.8% year over year to $23.3 million due to the increase in currency translation adjustments and the 3.4% increase in GAAP net income.

First-Quarter 2013 Non-GAAP Results

Non-GAAP financial results exclude the impact of share-based compensation expenses and the amortization of acquired intangible assets and the associated deferred tax impact.

First-quarter 2013 non-GAAP gross profit increased 11.6% year over year to $48.5 million, mainly due to the broad-based revenue growth discussed above. Non-GAAP gross margin was flat year-over-year at 36.8%, as the benefits of improved productivity were fully offset by the effects of increasing labor costs in China, appreciation of the RMB versus the U.S. dollar, investments in new businesses, and lower pricing in synthetic chemistry services.

First-quarter 2013 non-GAAP operating income increased 9.8% year over year to $26.7 million, primarily due to the 11.6% increase in non-GAAP gross profit, partially offset by higher operating expenses, particularly selling and marketing expenses and research and development expenses. Operating margin decreased slightly to 20.2% from 20.6% due to this increase in operating expenses.

First-quarter 2013 non-GAAP net income grew 3.7% year over year to $25.4 million due to the 9.8% increase in non-GAAP operating income, offset by higher income tax expense primarily due to the increase in taxable income and the reversal of an uncertain tax provision in the first quarter of 2012.

First-quarter 2013 non-GAAP diluted earnings per ADS grew 7.5% year over year to $0.35 due to the 3.7% increase in net income and a lower number of outstanding ADSs as a result of share buybacks in 2012.

Full-Year 2013 Financial Guidance

The company reconfirms the following full-year 2013 financial guidance:

 

 

Total net revenues of $565-575 million, or 13-15% year-over-year growth

 

 

GAAP diluted earnings per ADS of $1.26-$1.30

 

 

Non-GAAP diluted earnings per ADS of $1.49-$1.53

 

 

Capital expenditures of about $60 million

The company provides the following new full-year 2013 financial guidance:

 

 

GAAP and non-GAAP gross margin and operating margin comparable to those in 2012

Second-Quarter 2013 Financial Guidance

The company provides the following second-quarter 2013 financial guidance:

 

 

Total net revenues of $138-140 million

 

 

GAAP diluted earnings per ADS of $0.34-$0.35

 

 

Non-GAAP diluted earnings per ADS of $0.39-$0.40

 

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WUXI PHARMATECH (CAYMAN) INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. dollars, except ordinary share, ADS and par value data)

 

     March 31,
2013
     December 31,
2012
 

Assets:

     

Current assets:

     

Cash and cash equivalents

     104,899         54,133   

Restricted cash

     2,964         423   

Short-term investments

     160,754         175,245   

Accounts receivable, net

     98,790         99,578   

Inventories

     43,652         47,774   

Prepaid expenses and other current assets

     27,326         18,807   
  

 

 

    

 

 

 

Total current assets

     438,385         395,960   
  

 

 

    

 

 

 

Non-current assets:

     

Goodwill

     32,566         32,561   

Property, plant and equipment, net

     258,992         264,381   

Long-term investments

     15,797         14,015   

Intangible assets, net

     7,595         7,268   

Land use rights

     5,549         5,564   

Deferred tax assets

     3,045         3,037   

Other non-current assets

     15,726         19,749   
  

 

 

    

 

 

 

Total non-current assets

     339,270         346,575   
  

 

 

    

 

 

 

Total assets

     777,655         742,535   
  

 

 

    

 

 

 

Liabilities and equity:

     

Current liabilities:

     

Short-term and current portion of long-term debt

     62,283         59,089   

Accounts payable

     20,952         21,808   

Accrued expenses

     16,937         27,411   

Deferred revenue

     20,581         17,052   

Advanced subsidies

     10,798         9,265   

Other taxes payable

     3,593         1,581   

Other current liabilities

     20,790         11,215   
  

 

 

    

 

 

 

Total current liabilities

     155,934         147,421   
  

 

 

    

 

 

 

Non-current liabilities:

     

Long-term debt, excluding current portion

     5,643         5,697   

Advanced subsidies

     2,050         2,663   

Long-term payables

     758         732   

Other non-current liabilities

     7,659         7,799   
  

 

 

    

 

 

 

Total non-current liabilities

     16,110         16,891   
  

 

 

    

 

 

 

Total liabilities

     172,044         164,312   
  

 

 

    

 

 

 

Equity:

     

Ordinary shares ($0.02 par value, 5,002,550,000 authorized, 561,121,002 and 566,540,378 issued and outstanding as of December 31, 2012, and March 31, 2013, respectively)

     11,331         11,222   

Additional paid-in capital

     335,662         331,714   

Retained earnings

     210,316         188,604   

Accumulated other comprehensive income

     48,302         46,683   
  

 

 

    

 

 

 

Total equity

     605,611         578,223   
  

 

 

    

 

 

 

Total liabilities and equity

     777,655         742,535   
  

 

 

    

 

 

 

 

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WUXI PHARMATECH (CAYMAN) INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars, except ADS data and per ADS data)

 

     Three Months Ended
March 31,
 
     2013     2012     %
Change
 

Net revenues:

      

Laboratory Services

     97,481        86,650        12.5

Manufacturing Services

     34,384        31,378        9.6
  

 

 

   

 

 

   

 

 

 

Total net revenues

     131,865        118,028        11.7
  

 

 

   

 

 

   

 

 

 

Cost of revenues:

      

Laboratory Services

     (60,875     (54,488     11.7

Manufacturing Services

     (23,584     (21,649     8.9
  

 

 

   

 

 

   

 

 

 

Total cost of revenues

     (84,459     (76,137     10.9
  

 

 

   

 

 

   

 

 

 

Gross profit:

      

Laboratory Services

     36,606        32,162        13.8

Manufacturing Services

     10,800        9,729        11.0
  

 

 

   

 

 

   

 

 

 

Total gross profit

     47,406        41,891        13.2
  

 

 

   

 

 

   

 

 

 

Operating expenses:

      

Selling and marketing expenses

     (3,931     (3,279     19.9

General and administrative expenses

     (18,208     (16,162     12.7

Research and development expenses

     (2,270     (1,813     25.2
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     (24,409     (21,254     14.8
  

 

 

   

 

 

   

 

 

 

Operating income

     22,997        20,637        11.4
  

 

 

   

 

 

   

 

 

 

Other income (expenses), net:

      

Equity in earnings of joint ventures

     (217     —          —     

Other income (expenses), net

     3,057        2,740        11.6

Interest income (expenses), net

     1,594        1,699        (6.2 %) 
  

 

 

   

 

 

   

 

 

 

Total other income (expenses), net

     4,434        4,439        (0.1 %) 
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     27,431        25,076        9.4

Income tax expense

     (5,719     (4,088     39.9
  

 

 

   

 

 

   

 

 

 

Net income

     21,712        20,988        3.4
  

 

 

   

 

 

   

 

 

 

Other comprehensive income:

      

Currency translation adjustments

     1,620        454        256.8
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     23,332        21,442        8.8
  

 

 

   

 

 

   

 

 

 

Basic net earnings per ADS

     0.31        0.29        5.8

Diluted net earnings per ADS

     0.30        0.28        7.2
  

 

 

   

 

 

   

 

 

 

Weighted average ADS outstanding—basic

     70,368,616        71,978,914        (2.2 %) 

Weighted average ADS outstanding—diluted

     71,915,069        74,543,632        (3.5 %) 
  

 

 

   

 

 

   

 

 

 

 

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WUXI PHARMATECH (CAYMAN) INC.

RECONCILIATION OF GAAP TO NON-GAAP

(in thousands of U.S. dollars, except ADS data and per ADS data)

 

     Three Months Ended
March 31,
 
     2013     2012     %
Change
 

GAAP gross profit

     47,406        41,891        13.2

GAAP gross margin

     36.0     35.5  

Adjustments:

      

Share-based compensation

     1,038        1,066        (2.6 %) 

Amortization of acquired intangible assets

     98        525        (81.3 %) 
  

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

     48,542        43,482        11.6

Non-GAAP gross margin

     36.8     36.8  
  

 

 

   

 

 

   

 

 

 

GAAP operating income

     22,997        20,637        11.4

GAAP operating margin

     17.4     17.5  

Adjustments:

      

Share-based compensation

     3,600        3,155        14.1

Amortization of acquired intangible assets

     98        525        (81.3 %) 
  

 

 

   

 

 

   

 

 

 

Non-GAAP operating income

     26,695        24,317        9.8

Non-GAAP operating margin

     20.2     20.6  
  

 

 

   

 

 

   

 

 

 

GAAP net income

     21,712        20,988        3.4

GAAP net margin

     16.5     17.8  

Adjustments:

      

Share-based compensation

     3,600        3,155        14.1

Amortization of acquired intangible assets

     98        525        (81.3 %) 

Deferred tax impact related to acquired intangible assets

     (29     (195     (85.1 %) 
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

     25,381        24,473        3.7

Non-GAAP net margin

     19.2     20.7  
  

 

 

   

 

 

   

 

 

 

Income attributable to holders of ADS (Non-GAAP):

      

Basic

     25,381        24,473        3.7

Diluted

     25,381        24,473        3.7

Basic earnings per ADS (Non-GAAP)

     0.36        0.34        6.1

Diluted earnings per ADS (Non-GAAP)

     0.35        0.33        7.5

Weighted average ADS outstanding – basic (Non-GAAP)

     70,368,616        71,978,914        (2.2 %) 

Weighted average ADS outstanding – diluted (Non-GAAP)

     71,915,069        74,543,632        (3.5 %) 
  

 

 

   

 

 

   

 

 

 

 

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WUXI PHARMATECH (CAYMAN) INC.

REVENUE BREAKDOWN

(in thousands of U.S. dollars)

 

     Three Months Ended
March 31,
 
     2013      2012      %
Change
 

Net revenues:

        

China-based Laboratory Services

     74,444         64,452         15.5

China-based Manufacturing Services

     34,384         31,378         9.6
  

 

 

    

 

 

    

 

 

 

Subtotal

     108,828         95,830         13.6

U.S.-based Laboratory Services

     23,037         22,198         3.8
  

 

 

    

 

 

    

 

 

 

Total net revenues

     131,865         118,028         11.7
  

 

 

    

 

 

    

 

 

 

Conference Call

WuXi PharmaTech senior management will host a conference call at 8:00 am (U.S. Eastern) / 5:00 am (U.S. Pacific) / 8:00 pm (Beijing/Shanghai/Hong Kong) on Tuesday, May 14, 2013, to discuss its first-quarter 2013 financial results and future prospects. The conference call may be accessed by calling:

 

United States:    1-866-519-4004
China (Landline):    800-819-0121
China (Mobile):    400-620-8038
Hong Kong:    800-930-346
United Kingdom:    0-808-234-6646
International:    +65-6723-9381
Conference ID:    35582613

A telephone replay will be available two hours after the call’s completion at:

 

United States:    1-855-452-5696
China (Landline):    800-870-0205
China (Mobile):    400-120-0932
Hong Kong:    800-963-117
United Kingdom:    0-808-234-0072
International:    +61-2-8199-0299
Conference ID:    35582613

A live webcast of the conference call and replay will be available on the investor relations page of WuXi PharmaTech’s website at 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 a 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.

 

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Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead are predictions about future events. Examples of forward-looking statements in this press release include statements about our second-quarter and full-year 2013 guidance and our goal of building an open-access technology platform. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out to be incorrect. Our forward-looking statements are subject to risks relating to, among other things, our ability to control our costs and sustain revenue growth, to realize the anticipated benefits of our investments, to protect our clients’ intellectual property and to compete effectively. Additional information about these and other relevant risks can be found in our Annual Report on Form 20-F for the year ended December 31, 2012. The forward-looking statements in this press release speak only on the date that they are made, and we assume no obligation to update any forward-looking statements except as required by law.

Use of Non-GAAP and Pro-Forma Financial Measures

We have provided the first-quarter 2012 and 2013 gross profit, gross margin, operating income, operating margin, net income, net margin, and earnings per ADS on a non-GAAP basis, which excludes share-based compensation expenses, the amortization and deferred tax impact of acquired intangible assets. We believe both management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing underlying business performance and operating trends. We expect to continue to provide net income and earnings per ADS on a non-GAAP basis using a consistent method on a quarterly basis. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP measures to non-GAAP measures for the indicated periods attached hereto.

Statement Regarding Unaudited Financial Information

The financial information set forth above is unaudited and subject to adjustments. Adjustments to the financial statements may be identified when our annual financial statements are prepared and audit work is performed for the yearend audit, which could result in significant differences from this unaudited financial information.

For more information, please contact:

WuXi PharmaTech (Cayman) Inc.

Ronald Aldridge (for investors)

Director of Investor Relations

Tel: +1-201-585-2048

Email: ir@wuxiapptec.com

Aaron Shi (for the media)

WuXi PharmaTech (Cayman) Inc.

Tel: +86-21-5046-4362

Email: pr@wuxiapptec.com

 

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