WuXi PharmaTech, a provider of pharmaceutical research and development outsourcing services based in China, has signed a definitive agreement to acquire US-based AppTec Laboratory Services, Inc.. The acquisition of AppTec allows WuXi PharmaTech to immediately obtain biologics capabilities and expertise, gain a U.S. operational footprint, and expand its customer base.  

The combined business operations of WuXi PharmaTech and AppTec in both the U.S. 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. The transaction consideration totals approximately $151 million and the assumption of debt held by AppTec totaling approximately $11.7 million.   

Ge Li, PhD, WuXi PharmaTech’s chairman and chief executive officer, says, “we are very excited to announce the combination of WuXi PharmaTech and AppTec Laboratory Services, an important milestone in realizing our vision of becoming the global R&D outsourcing leader. WuXi’s chemistry services will be complemented by AppTec’s biologics testing and manufacturing capabilities to create a fully integrated service platform, from which we will be able to provide more value-added services to our customers. With an expanded geographic footprint, and a broader and deeper scope of services, we are well positioned to drive growth and continue to increase shareholder value.”

Bonita L. Baskin, PhD, chief executive officer of AppTec, says, “combining these two companies creates a unique single-source platform that has the ability to transform the outsourced R&D model globally. I, along with the AppTec team, share with Dr. Li our excitement over the prospects of this combination.”

The transaction has been approved by the AppTec and WuXi PharmaTech boards of directors and AppTec’s shareholders, and is expected to close, subject to regulatory and other customary closing conditions, in the first quarter of 2008. No approval by WuXi PharmaTech’s shareholders is required.