WuXi Cites "Strong Demand" for Cell Therapy Manufacturing

Although biologics currently represent 7.6% of WuXi's total revenue, growthin its biologics manufacturing business is

expected to grow"exponentially" in the third and fourth quarters of 2015, Ge Li,chairman and CEO of WuXi PharmaTech said on

Aug. 14, 2015 in a second-quarterearnings call.

WuXi is experiencing strong demand for its biologics manufacturingcapabilities, which is one of the reasons the company is

expanding its capacityin China via construction of a GMP manufacturing suite. Construction on theplant will begin in early

2016 and the facility is scheduled to be online thesame year, said Li. Executives said the commercial facility has to be

online by2016 to address a $70-million backlog of biologics projects the company has inthe pipeline. In total, WuXi has

planned or is planning 15 GMP manufacturingcampaigns during 2014 and 2015.

A growing biologics business
Li said the company has 50 biologics customers; six of these customers areamong the 20 largest pharmaceutical companies in

the world. Revenue in WuXi’sbiologics division was up 120% in the second quarter and “is expected to doublefor the full

year of 2014.” According to executives, WuXi’s

China Lab Services division grew 14.2%, “driven by rapid growth inbiologics, development services, and growth in lab testing

services.”

Cell therapies are gaining steam
The company’s US Lab Services division “delivered solid 9.6% year-over-yeargrowth, driven by strong growth in cell therapy

and material characterizationservices,” said Edward Hu, CFO and CIO of the company. The company has 15 celltherapy

customers, including NewLink Genetics, with whom it is working on celltherapy candidates for the treatment of pancreatic

cancer.

Strong demand for cell therapies led the company to begin construction on anew cell therapy manufacturing facility in

Philadelphia, which will be finishedin mid-2015. The Philadelphia facility will add cGMP manufacture capabilitiesfor

allogeneic and autologous cell-based therapeutics and will feature modulardesign, single-use equipment, and microcarrier

cell-culture technologies.

In 2008, WuXi discontinued its US biologics manufacturing operations fora time and dedicated its already-existing

Philadelphia, PA, facility to thecompany’s biologics testing, cell banking, and cell therapy services.

UPDATE: In a statement on Aug. 14, 2015, a day after the company's earningscall, WuXi PharmaTech announced it would go

private and sell itself to a newlyformed parent company called New WuXi Life Science Limited.