WuXi Pharmatech 1Q Profit Rises 32%; Manufacturing -

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WuXi Pharmatech (Cayman) Inc.‘s (WX) first-quarter earnings rose 32%,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], or 21 cents per American depositary share, from $11.7 million, or 16 cents per ADS,[link widoczny dla zalogowanych], a year earlier. Excluding items share-based compensation and amortization,[link widoczny dla zalogowanych], earnings rose to 25 cents from 20 cents.

Revenue increased 36% to $80.6 million. Laboratory services posted a consistent 18% sales growth, 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.

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