6-K 1 d395124d6k.htm FORM 6-K Form 6-K
Table of Contents

 

 

 

 

Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

REPORT OF FOREIGN ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2012

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

 

 

 


Table of Contents

WuXi PharmaTech (Cayman) Inc.

Form 6-K

TABLE OF CONTENTS

 

     Page  

Signature

     3   

Exhibit 99.1 — Press Release Dated August 13, 2012

     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: August 14, 2012

 

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Exhibit 99.1

WuXi PharmaTech Announces Second-Quarter 2012 Results

SHANGHAI, China, August 13, 2012 /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 second quarter of 2012.

Highlights

 

 

Net Revenues Increased 28.9% Year Over Year to $130.4 Million

 

 

Laboratory Services Net Revenues Grew 24.7% Year Over Year to $93.6 Million

 

 

China-Based Laboratory Services Net Revenues Increased 27.2% Year Over Year to $70.3 Million

 

 

U.S.-Based Laboratory Services Net Revenues Increased 17.7% Year Over Year to $23.3 Million

 

 

Manufacturing Services Net Revenues Grew 41.2% Year Over Year to $36.8 Million

 

 

Net Revenues from China Operations Exceeded $100 Million for the First Time on a Quarterly Basis

 

 

Share Repurchases Totaled $10.2 Million

 

 

GAAP Diluted Earnings Per ADS Grew 13.4% Year Over Year to $0.28

 

 

Non-GAAP Diluted Earnings Per ADS Increased 12.3% Year Over Year to $0.33

 

 

Company Increases Full-Year 2012 Revenue Guidance to $488-$498 Million

Management Comment

“WuXi’s strong operational performance continued in the second quarter,” said Dr. Ge Li, Chairman and Chief Executive Officer. “Year-over-year revenue growth accelerated to 28.9%, driven by solid demand for our broad, integrated platform of services. This revenue growth was broad-based, with each of our businesses achieving double-digit growth. I’m especially proud that this was the first quarter in which our China-based operations generated more than $100 million in net revenues. I’m also pleased that WuXi’s GAAP diluted earnings per ADS increased 13.4% year over year. With these results, we met or exceeded all of our guidance for revenues and margins for the second quarter. While we produced these strong results, we continued to invest in new facilities and talented employees to drive future growth. We also returned capital to shareholders by repurchasing $10.2 million of our ADSs in the second quarter. We expect the remainder of 2012 to be successful, and we are pleased to raise our full-year net revenue guidance to the range of $488 to $498 million.

“WuXi continues to build a comprehensive and integrated technology platform and service offerings that will enable anyone and any company to discover and develop new products efficiently and cost-effectively,” Dr. Li concluded. “By building high-quality operations to better serve our customers, WuXi has become the leader in the Chinese pharmaceutical R&D services industry. We are well-positioned to take advantage of the trend of increasing pharmaceutical research and development outsourcing.”

Second-Quarter GAAP Results

Second-quarter 2012 net revenues increased 28.9% year over year to $130.4 million due to strong growth in both Manufacturing Services and Laboratory Services. Manufacturing Services revenue growth was driven by robust demand for clinical-trial materials from our research manufacturing business and for advanced intermediates in our commercial manufacturing business. Revenue growth in Laboratory Services was driven by our comprehensive and integrated discovery and development services, with particularly strong growth in analytical development services, DMPK/ADME, biology, formulation, toxicology, and bioanalytical services in China and increased demand for testing services in the United States for both biologics and medical devices.

 

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Second-quarter 2012 GAAP gross profit increased 20.4% year over year to $46.5 million mainly due to 28.9% revenue growth. Second-quarter 2012 GAAP gross margin decreased year over year to 35.7% from 38.2%. Gross margin in Laboratory Services decreased year over year to 36.7% from 40.6% mainly due to the effects of appreciation of the RMB against the U.S. dollar and increasing labor costs in China, partially offset by improved productivity. Gross margin in Manufacturing Services improved year over year to 33.1% from 31.2% due to improved capacity utilization and project mix.

Second-quarter 2012 GAAP operating income grew 10.5% year over year to $23.8 million due to the 20.4% increase in gross profit, offset by increased operating expenses related to the hiring of new senior staff and sales and marketing personnel and R&D investment in developing capabilities in biology, biologics, genomics, and other areas. Operating margin decreased to 18.2% from 21.3% due to the lower gross margin and the increased operating expenses.

Second-quarter 2012 GAAP net income increased 9.9% year over year to $20.5 million due to the 10.5% increase in operating income, higher interest income on short-term investments that carried higher interest rates, and lower income tax expense due to income mix and a tax benefit from the deductibility of 150% of last year’s R&D expenses, offset by a loss on foreign-exchange forward contracts of $0.9 million.

Second-quarter 2012 GAAP diluted earnings per ADS increased 13.4% to $0.28, mainly due to the 9.9% increase in net income and a lower ADS count caused by the repurchase of 722,431 ADSs, at an average price of $14.14 per ADS.

Second-quarter 2012 GAAP comprehensive income decreased 21.2% year over year to $18.4 million due to the decrease in currency translation adjustments, partially offset by the 9.9% increase in GAAP net income.

Second-Quarter 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.

Second-quarter 2012 non-GAAP gross profit increased 20.1% year over year to $48.0 million mainly due to broad-based revenue growth. Non-GAAP gross margin decreased to 36.8% from 39.5%. Non-GAAP gross margin in Laboratory Services decreased year over year to 38.2% from 41.3% due to the appreciation of the RMB against the U.S. dollar and increased labor costs, partially offset by improved productivity. Non-GAAP gross margin in Manufacturing Services slightly improved year over year to 33.5% from 33.0% due to strong revenue growth, increased capacity utilization, and project mix.

Second-quarter 2012 non-GAAP operating income increased 9.7% year over year to $27.4 million, primarily due to the 20.1% increase in non-GAAP gross profit, partially offset by the increase in non-GAAP operating expenses driven by the hiring of new senior staff and sales and marketing personnel and R&D investment in developing capabilities in biology, biologics, genomics, and other areas. Operating margin decreased to 21.0% from 24.7% due to the lower gross margin and increased operating expenses.

Second-quarter 2012 non-GAAP net income grew 8.8% year over year to $23.9 million due to the 9.7% increase in non-GAAP operating income, higher interest income on short-term investments that carried higher interest rates, and lower income tax expense due to income mix and a tax benefit from deductibility of 150% of last year’s R&D expenses, offset by a loss on foreign-exchange forward contracts of $0.9 million.

Second-quarter 2012 non-GAAP diluted earnings per ADS grew 12.3% year over year to $0.33, mainly due to the 8.8% increase in non-GAAP net income and a lower ADS count caused by the repurchase of 722,431 ADSs, at an average price of $14.14.

 

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Full-Year 2012 Financial Guidance

The company provides the following full-year 2012 financial guidance:

 

 

Total net revenues of $488-498 million, or 20-22% year-over-year growth, compared to $468-$488 million, or 15-20% growth, previously

 

 

Growth in net revenues of China-based Laboratory Services of 23-26% year over year, compared to 18-24% previously, on a pro-forma basis reflecting the classification of Process Chemistry in Manufacturing Services for both years

 

 

Growth in net revenues of U.S.-based Laboratory Services of 12-13% year over year, compared to 6-9% previously

 

 

Growth in net revenues of Manufacturing Services of 18-21% year over year, compared to 13-18% previously, on a pro-forma basis reflecting the classification of Process Chemistry in Manufacturing Services for both years

 

 

Operating income margin of 17.0-18.0% on a GAAP basis, 20.0-21.0% on a non-GAAP basis, compared to 17.5-19.0% on a GAAP basis, 20.0-21.5% on a non-GAAP basis previously

 

 

Capital expenditures of about $70 million, the same as previous guidance

 

 

GAAP effective tax rate of about 17.5%, the same as previous guidance

Third-Quarter 2012 Financial Guidance

The company provides the following third-quarter 2012 financial guidance:

 

 

Total net revenues of $121-$124 million, up 16-19% year over year

 

 

Laboratory Services net revenues (not including Process Chemistry) of $97-$98 million

 

 

Manufacturing Services net revenues (including Process Chemistry) of $24-$26 million

 

 

Operating margin of 16.5-17.0% GAAP, 20.0-20.5% non-GAAP

 

 

Effective tax rate of about 19.5-20.0%

 

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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)

 

     June 30, 2012      December 31, 2011  

Assets:

     

Current assets:

     

Cash and cash equivalents

     55,211         71,368   

Restricted cash

     7,391         2,458   

Short-term investment

     127,933         128,054   

Accounts receivable, net

     84,053         72,736   

Inventories

     42,917         45,351   

Prepaid expenses and other current assets

     14,114         15,133   
  

 

 

    

 

 

 

Total current assets

     331,619         335,100   
  

 

 

    

 

 

 

Non-current assets:

     

Goodwill

     34,696         34,701   

Property, plant and equipment, net

     264,000         245,694   

Long-term investment

     5,972         4,335   

Intangible assets, net

     9,712         10,568   

Land use rights

     5,400         5,488   

Deferred tax assets

     6,429         8,499   

Other non-current assets

     19,383         19,469   
  

 

 

    

 

 

 

Total non-current assets

     345,592         328,754   
  

 

 

    

 

 

 

Total assets

     677,211         663,854   
  

 

 

    

 

 

 

Liabilities and equity:

     

Current liabilities:

     

Short-term and current portion of long-term debt

     44,248         28,661   

Accounts payable

     23,925         22,803   

Accrued expenses

     18,700         20,913   

Deferred revenue

     13,328         15,881   

Advanced subsidies

     7,733         6,417   

Other taxes payable

     3,308         2,196   

Convertible notes

     —           35,864   

Other current liabilities

     13,374         10,018   
  

 

 

    

 

 

 

Total current liabilities

     124,616         142,753   
  

 

 

    

 

 

 

Non-current liabilities:

     

Long-term debt, excluding current portion

     1,543         1,646   

Advanced subsidies

     1,446         3,215   

Long-term payable

     2,099         3,944   

Other non-current liabilities

     6,379         6,570   
  

 

 

    

 

 

 

Total non-current liabilities

     11,467         15,375   
  

 

 

    

 

 

 

Total liabilities

     136,083         158,128   
  

 

 

    

 

 

 

Equity:

     

Ordinary shares ($0.02 par value, 5,002,550,000 authorized, 570,489,352 and 569,937,290 issued and outstanding as of December 31, 2011, and June 30, 2012, respectively)

     11,399         11,410   

Additional paid-in capital

     342,505         345,832   

Retained earnings

     143,501         103,159   

Accumulated other comprehensive income

     43,723         45,325   
  

 

 

    

 

 

 

Total equity

     541,128         505,726   
  

 

 

    

 

 

 

Total liabilities and equity

     677,211         663,854   
  

 

 

    

 

 

 

 

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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 June 30,     Six Months Ended June 30,  
     2012     2011     % Change     2012     2011     % Change  

Net revenues:

            

Laboratory Services

     93,544        75,026        24.7     180,194        145,334        24.0

Manufacturing Services

     36,837        26,087        41.2     68,215        49,334        38.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     130,381        101,113        28.9     248,409        194,668        27.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues:

            

Laboratory Services

     (59,255     (44,546     33.0     (113,742     (87,258     30.4

Manufacturing Services

     (24,631     (17,938     37.3     (46,281     (34,086     35.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

     (83,886     (62,484     34.3     (160,023     (121,344     31.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit:

            

Laboratory Services

     34,289        30,480        12.5     66,452        58,076        14.4

Manufacturing Services

     12,206        8,149        49.8     21,934        15,248        43.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross profit

     46,495        38,629        20.4     88,386        73,324        20.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Selling and marketing expenses

     (3,729     (2,547     46.4     (7,007     (4,505     55.5

General and administrative expenses

     (16,911     (13,608     24.3     (33,073     (25,782     28.3

Research and development expenses

     (2,080     (961     116.4     (3,893     (1,684     131.2

Total operating expenses

     (22,720     (17,116     32.7     (43,973     (31,971     37.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     23,775        21,513        10.5     44,413        41,353        7.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expenses), net:

            

Other income (expenses), net

     (580     149        (489.3 %)      2,160        1,776        21.6

Interest income (expenses), net

     1,425        975        46.2     3,124        1,806        73.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses), net

     845        1,124        (24.8 %)      5,284        3,582        47.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     24,620        22,637        8.8     49,697        44,935        10.6

Income tax expense

     (4,128     (3,986     3.6     (8,216     (8,060     1.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     20,492        18,651        9.9     41,481        36,875        12.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net earnings per ADS

     0.29        0.26        8.6     0.58        0.52        10.5

Diluted net earnings per ADS

     0.28        0.25        13.4     0.56        0.49        14.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average ADS outstanding—basic

     71,660,086        70,859,356        1.1     71,816,806        70,516,975        1.8 %

Weighted average ADS outstanding—diluted

     72,984,759        75,329,493        (3.1 %)      73,761,502        75,373,691        (2.1 %)
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income:

            

Currency translation adjustments

     (2,056     4,739        (143.4 %)      (1,602     8,195        (119.5 %) 

Comprehensive income

     18,436        23,390        (21.2 %)      39,879        45,070        (11.5 %) 

 

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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 June 30,     Six Months Ended June 30,  
     2012     2011     % Change     2012     2011     % Change  

GAAP gross profit

     46,495        38,629        20.4     88,386        73,324        20.5

GAAP gross margin

     35.7     38.2       35.6     37.7  

Adjustments:

            

Share-based compensation

     1,023        1,005        1.8     2,089        1,980        5.5

Amortization of acquired intangible assets

     525        355        47.9     1,050        710        47.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

     48,043        39,989        20.1     91,525        76,014        20.4

Non-GAAP gross margin

     36.8     39.5       36.8     39.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP operating income

     23,775        21,513        10.5     44,413        41,353        7.4

GAAP operating margin

     18.2     21.3       17.9     21.2  

Adjustments:

            

Share-based compensation

     3,090        3,109        (0.6 %)      6,245        6,046        3.3

Amortization of acquired intangible assets

     525        355        47.9     1,050        710        47.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income

     27,390        24,977        9.7     51,708        48,109        7.5

Non-GAAP operating margin

     21.0     24.7       20.8     24.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income

     20,492        18,651        9.9     41,481        36,875        12.5

GAAP net margin

     15.7     18.4       16.7     18.9  

Adjustments:

            

Share-based compensation

     3,090        3,109        (0.6 %)      6,245        6,046        3.3

Amortization of acquired intangible assets

     525        355        47.9     1,050        710        47.9

Deferred tax impact related to acquired intangible assets

     (195     (137     42.3     (390     (275     41.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

     23,912        21,978        8.8     48,386        43,356        11.6

Non-GAAP net margin

     18.3     21.7       19.5     22.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

            

Basic

     23,912        21,978        8.8     48,386        43,356        11.6

Diluted

     23,912        21,978        8.8     48,386        43,356        11.6

Basic earnings per ADS (Non-GAAP)

     0.33        0.31        7.6     0.67        0.61        9.6

Diluted earnings per ADS (Non-GAAP)

     0.33        0.29        12.3     0.66        0.58        14.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average ADS outstanding – basic (Non-GAAP)

     71,660,086        70,859,356        1.1     71,816,806        70,516,975        1.8

Weighted average ADS outstanding – diluted (Non-GAAP)

     72,984,759        75,329,493        (3.1 %)      73,761,502        75,373,691        (2.1 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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WUXI PHARMATECH (CAYMAN) INC.

REVENUE BREAKDOWN

(in thousands of U.S. dollars)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2012      2011      % Change     2012      2011      % Change  

Net revenues:

                

China-based Laboratory Services

     70,294         55,268         27.2     134,746         106,499         26.5

China-based Manufacturing Services

     36,837         26,087         41.2     68,215         49,334         38.3
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Subtotal

     107,131         81,355         31.7     202,961         155,833         30.2

U.S.-based Laboratory Services

     23,250         19,758         17.7     45,448         38,835         17.0
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total net revenues

     130,381         101,113         28.9     248,409         194,668         27.6
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

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, August 14, 2012, to discuss its second-quarter 2012 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:    10406942

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

 

United States:    1-866-214-5335
China (Landline):    10-800-714-0386
China (Mobile):    10-800-140-0386
Hong Kong:    800-901-596
United Kingdom:    0-800-731-7846
International:    +61-2-8235-5000
Conference ID:    10406942

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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Use of Non-GAAP and Pro-Forma Financial Measures

We have provided the second-quarter 2011 and 2012 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 and 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.

Statements in this release contain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995, including, among others, our financial guidance for full-year and third-quarter 2012 (including, as applicable, estimated total revenues, Laboratory Services revenues, Manufacturing Services revenues, operating margins and other trends), pharmaceutical research and development outsourcing trends, our ability to take advantage of increasing pharmaceutical research and development outsourcing, increased customer demand for our services, investment in various new businesses, investment in expanding our existing business, building a comprehensive and integrated technology platform, the ability of this platform to enable anyone and any company to discover and develop new products efficiently and cost-effectively, and our share repurchase program.

These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Among other factors, the state of the global economy may continue to be uncertain; pharmaceutical companies may not change their business models as expected or in a manner favorable to us; we may fail to capitalize on the opportunities presented; the pressures being felt by our customers and pharmaceutical industry consolidation may adversely impact our business and the trends for outsourced and offshored R&D and manufacturing for longer than expected or more severely than expected; we may not enjoy the anticipated benefits of the Abgent and MedKey acquisitions or other planned investments and capital expenditures (including investments made through our corporate venture fund) on a timely basis or at all; we may need to modify the nature and level of our investments and capital expenditures; we may not maintain our preferred provider status with our clients and may be unable to successfully expand our capabilities to meet client needs; we may face increased margin pressure as a result of renminbi appreciation and increased labor inflation in China and the company’s investment; and we may not repurchase our ADSs as anticipated for market or other reasons. In addition, other factors that could cause our actual results to differ from what we currently anticipate include failure to generate sufficient future cash flows or to secure any required future financing on acceptable terms or at all; failure to retain key personnel; our reliance on a limited number of customers to continue to account for a high percentage of our revenues; the risk of payment failure by any of our large customers, which could significantly harm our cash flows and profitability; our dependence upon the continued service of our senior management and key scientific personnel, and our ability to retain our existing customers or expand our customer base. You should read the financial information contained in this release in conjunction with the consolidated financial statements and related notes thereto included in our 2011 Annual Report on Form 20-F filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission’s website at http://www.sec.gov. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, see “Risk Factors” beginning on page 6 of our 2011 Annual Report on Form 20-F. Our results of operations for second-quarter 2012 are not necessarily indicative of our operating results for any future periods. All projections in this release are based on limited information currently available to us, which is subject to change. Although these projections and the factors influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release, except as required by law. Such information speaks only as of the date of this release.

 

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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 year end audit, which could result in significant differences from this unaudited financial information.

Incorporation by Reference

WuXi PharmaTech hereby expressly incorporates by reference into its registration statement on Form F-3 (File No. 333-161757) the discussions contained in “GAAP Results,” the unaudited consolidated balance sheets, the unaudited condensed consolidated statements of operations, and the revenue breakdown by geography, from this press release.

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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PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/

/Web site: http://www.wuxiapptec.com/

(WX)

 

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