Right mix

After the acquisition of AppTech, WuXi PharmaTech says its chemistry services will be complemented by the newcomer's biological testing and manufacturing capabilities to create a "broader and deeper scope of services".

The acquisition came five months after the company raised $184.6 million in its IPO in New York. Valued at $151 million including $11.7 million in AppTec's debt, the deal is the biggest Chinese takeover of a US company since Lenovo Group Ltd bought IBM's PC business at $1.75 billion in December 2004, according to Bloomberg news.

"This acquisition allows WuXi to obtain biological capabilities and expand its US customer base. AppTech has established customer relationships with leading pharmaceutical, biotech and medical device companies in the US and around the world," says WuXi PharmaTech founder and CEO Li Ge, adding that the purchase is a step toward its goal of becoming a "global R&D outsourcing leader".

The company is also rapidly expanding its facilities in China. It now has a 630,000 sq ft research facility located at Shanghai Waigaoqiao Free Trade Zone, and a 220,000 sq ft CGMP-quality manufacturing plant in Jinshan district, Shanghai. CGMP is a standard issued by US Food and Drug Administration for pharmaceutical, medical device and food manufacturers in their production and testing of products.

A new Tianjin research facility was set up in 2006 as its R&D center in northern China. Meanwhile, a 267,000 sq ft preclinical service facility kicked off construction last year in Suzhou, 60 kilometers from the neighboring Shanghai. Providing customers with a broad range of toxicology services, the facility is expected to become the biggest drug safety evaluation center in the country.

Backed by these facilities, the company is able to register a full range of services from process research to evaluation and manufacturing.

"Very few companies have such broad service capabilities as WuXi PharmaTech, and that gives us a competitive edge," Li says with a confident smile.

For three consecutive years from 2005, the company has been one of the winners of both the Deloitte Technology Fast 50 China award and the Deloitte Technology Fast 500 Asia Pacific award, which rank the fastest growing technology companies in China and Asia respectively.

Li, who was named one of the 2007 China Top 10 Influential Entrepreneurs selected by Entrepreneur magazine's China edition, says his company is "in China, yet for the world". Under his vision, China's pharmaceutical and biological R&D industry is set to play a much stronger role in the global market.

(China Daily 03/24/2008 page12)