WuXi PharmaTech Plans Big Expansion
Jun 16, 2004
June 16, 2004 - Shanghai, China - SHANGHAI-BASED WuXi PharmaTech Co Ltd, will pour 100million yuan (US$12million) to expand its pharmaceutical ingredient manufacturing plant in Jinshan District, Shanghai.
The plant, which stared production at the end of May, has an annual production capacity of at least 20 tons of pharmaceutical intermediates and active ingredients.
The firm plans to expand the plant to an area of around 667 square meters with a projected annual production exceeding 60 tons.
Construction of the expansion is scheduled to be completed in two years.
The research and development-based pharmaceutical company started construction of the first phase of the Jinshan plant in June last year.
It is invested 60 million yuan (US$7.2million).
"Before, WuXi PharmaTech mainly provides chemistry discovery services for global drug makers," said Liu Xiaozhong, executive vice president of WuXi PharmaTech.
"With the existing plant, which will be further expanded, plus our research capacity, we are now able to offer customers a complete package from discovery to manufacture of products." The firm is also considering tapping the country's ready-made drug market.
Wang Guoqing, an analyst with Soochow Securities Co Ltd, said that it may be a wise step for the firm to tap into the ready-made drug market because that business, profit margin is higher than that of making medical ingredients.
"It's hard to compare the average profit margin of drugs and medical ingredients because there are too many different kinds of products," Wang said. "but ready-made drugs, as a whole, definitely enjoy a higher margin."
Wang also warned that there were risks associated with the market if companies fail to properly promote products.
About WuXi PharmaTech (Cayman) Inc.
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 pharmaceutical, biotechnology and medical device companies 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. The operating subsidiaries of WuXi PharmaTech are known as WuXi AppTec. For more information, please visit: www.wuxiapptec.com.