WuXi PharmaTech (Cayman) Inc. will discontinue its U.S. biologics manufacturing operations at its Philadelphia facility as of December 31, 2008, resulting in the elimination of approximately 100 positions. The company plans to expand biologics testing, cell banking and cell therapy services at the facility.
WuXi anticipates biologics manufacturing revenues will be less than 4% of total expected annual revenue in 2008. In 2009, the company expects cost savings of approximately $10 million as a result of the discontinued operations.
Dr. Ge Li, chairman and chief executive officer of WuXi PharmaTech, said, "WuXi has been fortunate, even in current market conditions, to continue to experience rapid growth in our global business. This growth reflects our reputation for providing high-quality laboratory services to our clients in a cost-efficient manner. With our continued focus on growth and profitability, we are moving to mitigate operating risks in our biologics manufacturing operations, all of which are based in Philadelphia, and are shifting our Philadelphia-based Resources to biologics testing and laboratory services, which continue to show strong customer demand. Our biologics testing, cell banking and cell therapy operations in Philadelphia and our St. Paul and Atlanta operations will be unaffected by these actions."