SHANGHAI, July 30 /PRNewswire-Asia-FirstCall/ -- WuXi PharmaTech (Cayman) Inc. (NYSE: WX) announced today that its previously announced transaction with Charles River Laboratories International Inc. (NYSE: CRL) has been terminated by mutual agreement due to Charles River shareholder opposition. Under the terms of the termination agreement, WuXi will receive a breakup fee of $30 million.
"WuXi's strategy has not changed. Our goal is, and has long been, to build a broad, integrated R&D service platform designed to help our customers improve the success of research and shorten the time of new product development," said Dr. Ge Li, Chairman and Chief Executive Officer. "While we are disappointed that this transaction could not be completed, WuXi remains well positioned to meet our customers' needs and to continue to grow and expand as a standalone company.
"All of our businesses are performing very well," Dr. Li continued. "Each business unit has met or exceeded its targets for the second quarter, and we recently increased our guidance for full-year 2010 financial performance.
"Virtually all of the large global pharmaceutical companies, as well as hundreds of smaller pharmaceutical and biotech companies and many leading medical device companies, are our customers," Dr. Li concluded. "We believe that strong trends for greater outsourcing and offshoring of R&D services will continue, and that WuXi, as the leading China-based contract research organization, is well positioned to benefit from this powerful outsourcing trend for many years to come."
Second Quarter Results
WuXi will report financial results for the second quarter ending June 30, 2010, on Monday, August 2, at 6:30 am EDT with a conference call at 8:30 am EDT to discuss the results and the outlook for WuXi's business. 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: 90840146
Web PIN: 8656
A replay will be available two hours after the call's completion at:
United States: 1-866-214-5335
China North: 10-800-714-0386
China South: 10-800-140-0386
Hong Kong: 800-901-596
United Kingdom: 0-800-731-7846
International: +61-2-8235-5000
Passcode: 90840146
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 .
Forward-Looking Statements
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. These forward-looking statements, including those with respect to our financial guidance for 2010, expected strong performance of all our businesses and industry trends favoring outsourcing and offshoring R&D, 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, continued uncertainty in the global economy, the pressures being felt by our customers, and pharmaceutical industry consolidation may adversely impact our business and the trends for outsourced 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; 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; we may not maintain our preferred provider status with our clients and may be unable to successfully expand our capabilities to meet client needs. 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; effective integration of continuing products and services from AppTec; our reliance on a limited number of customers to continue to account for a high percentage of our revenues; risk of payment failure by any of our large customers, which could significantly harm our cash flows and profitability; dependence upon the continued service of our senior management and key scientific personnel; our ability to retain our existing customers or expand our customer base; and future regulatory or legislative actions. 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 2009 Annual Report on Form 20-F filed with and available on the Securities and Exchange Commission's website at http://www.sec.gov. 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.
For more information, please contact:
WuXi PharmaTech (Cayman) Inc.
Ronald Aldridge Director of Investor Relations
Phone: +1-201-585-2048
Email: ir@wuxiapptec.com
Source: WuXi PharmaTech (Cayman) Inc.
