WuXi PharmaTech (Cayman) (WX) Releases Quarterly Earnings Results, Misses

The offer price from the group taking the company private – known as New WuXi Life Science Limited and subsidiary WuXi Merger Limited – represents a 16.5% premium over the closing price of the company’s stock on April 29 of $39.50.

Shares of WuXi PharmaTech (Cayman) Inc. A, the equity is trading $2.3973 away or +5.7610% from its 50-day moving average of $41.6126. (NYSE:WX) rose by 4.65% in the past week and 3.84% for the last 4 weeks. The company last reported earnings for the period ending on 2015-06-30 of $0.27. “Our second quarter and year-to-date performance demonstrate continued progress in shifting our product mix and driving growth in our higher value products”.

About 2.3 million shares of WuXi PharmaTech were traded by 10:45 a.m. Friday, above the company’s average trading volume of about 583,000 shares a day.

Analysts said Hong Kong’s market suffered from the negative implications of yuan devaluation, the weakening economic outlook and the imminent U.S. interest rate hike, hammering sectors including airlines, property and autos. (NYSE:WX) which led to swings in the share price. The company had revenue of $194.14 million for the quarter, compared to analyst estimates of $195.26 million. WuXi PharmaTech has a one year low of $32.25 and a one year high of $46.14. Analysts now expect the company to post revenue of $794.41 million for the full year 2015.

In taking a look at the current valuation of WuXi PharmaTech (Cayman) Inc. For the first six months of 2015, net sales increased by 3.9% to $165.8 million.

The company also expanded its biologics business by joining three Chinese institutional investors to acquire Ambrx, a clinical-stage biopharma company focused on the discovery and development of antibody-drug conjugates. (NYSE:WX). This number is based on the mean estimate from the 4 research firms that recently issued reports on the company.

WuXi PharmaTech (Cayman) Inc. The Laboratory services segment is engaged in pharmaceutical, biotechnology and medical device companies. The Company provides a portfolio of laboratory and manufacturing services throughout the R&D process to its customers, which include the world’s pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its global customers in shortening the time and lowering the cost of pharmaceutical and medical device R&D by providing outsourcing solutions. In March 2014, WuXi Genome Center purchased Illumina HiSeq X Ten sequencing system.