The Chinese contract research organization (CRO) saw operating income increase 31 per cent to $19m (€14m), while net revenue for the three month period ended September 31 grew 20 per cent to $84m.
The revenue contributions from Wuxi’s core laboratory testing and manufacturing services businesses both increased, climbing 19 per cent to $76m and 23 per cent and $7m, respectively.
A further $30m was provided in the form of a termination fee from Charles River Laboratories (CRL) following the collapse of the US research contractor’s takeover bid earlier in the year.
CEO Ge Li said the results reflected that: “Strong trends for outsourcing of pharmaceutical discovery services are continuing,” increasing the firm’s revenue guidance for the year to between $330m to $333m, up 23 per cent on 2009.
Li also suggested that Wuxi’s laboratory business would continue to be the major driver, predicting that revenues generated from both its recently expanded Chinese operations and laboratory unit in the US would each be around 19 per cent higher than last year.
GLP toxicology testing
Li’s comments fit with those made by Deepak Hegde, VP of pharma development at the CRO’s Wuxi Apptec unit, at the American Association of Pharmaceutical Scientists (AAPS) annual conference in New Orleans last week.
Hegde told Outsourcing-pharma that demand has recovered after the economic downturn in 2008 and 2009.
He went on to highlight Wuxi's good laboratory practice (GLP) standard toxicology testing services as an important area of focus for the firm in 2011, also citing the firm’s recent expansion as a key development in the field.
Beyond this the CRO also plans to build both a pilot-scale GMP manufacturing facility in the city of Wuxi for the production of biologic drugs, as well as another testing laboratory in the city of Wuhan.