SHANGHAI, October 24, 2011 /PRNewswire-Asia/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX), a leading pharmaceutical, biotechnology and medical device research and development services company with operations in China and the United States, today announced the acquisition of MedKey Med-Tech Development Co. Ltd. and Jiecheng Med-Tech Development Co. Ltd., two related contract clinical research services companies based in Shanghai, China. The financial terms of the transaction were not disclosed.
Founded in 2006, MedKey/Jiecheng have about 80 employees and operate in 15 cities in China, with offices in Shanghai, Beijing, and Guangzhou. The companies provide services in regulatory affairs, Phase I-IV clinical trial management, and clinical trial site management throughout most of the regions in China. Their customer base includes both multinational pharmaceutical companies and domestic Chinese pharmaceutical companies. David Xi, founder, owner, and CEO of the companies, will continue to manage MedKey/Jiecheng as WuXi's Executive Director of Clinical Operations. As part of WuXi, MedKey/Jiecheng will leverage WuXi's broad customer base and will focus on clinical services needed by customers for Chinese regulatory filings and market access.
"WuXi's acquisition of Medkey/Jiecheng continues our strategy to build an integrated platform of R&D services that will allow anyone and any company to discover and develop drugs more efficiently and cost effectively for patients," said Dr. Ge Li, Chairman and CEO of WuXi. "This acquisition provides WuXi an existing clinical development service capability and infrastructure that WuXi will expand and strengthen to serve our customers' growing clinical development needs in the fast-growing Chinese healthcare market."
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 pharmaceutical, biotechnology and medical device companies with 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 help its global partners in shortening the cycle and lowering the cost of drug and medical device R&D. The operating subsidiaries of WuXi PharmaTech are known as WuXi AppTec.
Cautionary Note Regarding Forward-Looking Statements
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 the strategic rationale for, and anticipated benefits of, the MedKey/Jiecheng acquisition and the expected growth in MedKey/Jiecheng's target market.
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 may differ, possibly materially, from the anticipated benefits, results and financial contributions contemplated in these forward-looking statements. Among other transaction specific factors, we may not recognize fully the anticipated benefits of the transaction; the MedKey/Jiecheng business may not perform, or MedKey/Jiecheng's target market and targeted customer base may not grow as expected and there may be unexpected costs or difficulties in integrating the MedKey/Jiecheng business (particularly as we have not previously provided clinical services) or in retaining its employees and management. In addition, our business and industry face other difficulties and risks including: the state of the global economy may continue to be uncertain; pharmaceutical, biotechnology, and medical-device 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 be unable to successfully make our planned investments and capital expenditures on a timely basis; these investments may not yield the desired results and 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; and we may face increased margin pressure as a result of renminbi appreciation and increased labor inflation in China. You should read the financial information contained in this release in conjunction with the consolidated financial statements and related notes thereto included in our 2010 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 2010 Annual Report on Form 20-F. 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.
