WuXi PharmaTech to acquire AppTec Laboratory Services

WuXi PharmaTech, a major Chinese provider of pharmaceutical r&d outsourcing services, has signed a definitive agreement to acquire US-based AppTec Laboratory Services (AppTec) in a deal worth approximately US$151m (Euro 102m).

The transaction is expected to close, subject to regulatory and other customary closing conditions, in the first quarter of 2008.

The acquisition of AppTec gives Shanghai-based WuXi PharmaTech immediate access to biologics capabilities and expertise, a significant US operational footprint, and expands its customer base and addressable market size. The combined business operations in both the US and China will enable WuXi PharmaTech to provide a full service suite of outsourced chemistry and biology services to global pharmaceutical, biotechnology and medical device clients.

AppTec is a service provider for the biopharmaceutical and medical device industries, offering testing, contract r&d and biologics cGMP manufacturing services from a highly differentiated, fully integrated service platform. Along with state-of-the-art FDA-registered facilities located in Philadelphia, St. Paul and Atlanta, AppTec brings established customer relationships with many leading pharmaceutical, biotechnology and medical device companies in the US and around the world.

"The combination of WuXi PharmaTech and AppTec Laboratory Services is an important milestone in realising our vision of becoming the global r&d outsourcing leader," said Dr Ge Li, chairman and ceo of WuXi PharmaTech.

"WuXi's chemistry services will be complemented by AppTec's biologics testing and manufacturing capabilities to create a fully integrated service platform. With an expanded geographic footprint, and a broader and deeper scope of services, we are well positioned to drive growth."