WuXi Pharmatech Q2 profits up 35%, beating estimates

WuXi Pharmatech (WX.NYSE) posted stronger-than-expected earnings in the second quarter, up 36% year-on-year, Dow Jones reported. The drug research contractor saw profits surge over the past year on the back of broad-based sales growth, even though revenues its US lab business slipped slightly. The company also benefitted from a US$30 million break-off fee when Charles River Laboratories (CRL.NYSE) abandoned a US$1.6 billion bid for WuXi last year. WuXi reported profits of US$18.7 million in the second quarter, up from US$13.8 million a year earlier. Earnings per share rose to US$0.29 from US$0.27, beating analyst expectations of US$0.25 per share. Revenues from China-based labs were up 15%, while US lab revenues dipped 0.8%.