WuXi PharmaTech: The Leading China-Based R&D Services Company

2012 J.P. Morgan Healthcare Conference

Cautionary Note Regarding Forward-Looking Statements

Statements in this release contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995, including, among others, our financial guidance for third-quarter and full-year 2011 (including, as applicable, estimated total net revenues, China-based Laboratory Services net revenues, U.S.-based Laboratory Services net revenues, Manufacturing Services net revenues, gross margins, operating margins, capital expenditures, effective tax rates, and other trends), an increased trend towards outsourced and offshored R&D, our ability to benefit from this trend and our related efforts to be the industrys alternative R&D engine to discover and develop new drugs for both the global and Chinese markets and the anticipated benefits of the Abgent and MedKey acquisitions and other planned investments and capital expenditures (including investments through WuXis corporate venture fund). These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Among other factors, the state of the global economy may continue to be uncertain; pharmaceutical companies may not change their business models as expected or in a manner favorable to us; we may fail to capitalize on the opportunities presented; the pressures being felt by our customers and pharmaceutical industry consolidation may adversely impact our business and the trends for outsourced and offshored R&D and manufacturing for longer than expected or more severely than expected; we may not enjoy the anticipated benefits of the Abgent and MedKey acquisitions or other planned investments and capital expenditures (including investments made through the planned corporate venture fund) on a timely basis or at all; we may need to modify the nature and level of our investments and capital expenditures; we may not maintain our preferred provider status with our clients and may be unable to successfully expand our capabilities to meet client needs; and we may face increased margin pressure as a result of renminbi appreciation and increased labor inflation in China. In addition, other factors that could cause our actual results to differ from what we currently anticipate include our limited operating history; failure to generate sufficient future cash flows or to secure any required future financing on acceptable terms or at all; failure to retain key personnel; our reliance on a limited number of customers to continue to account for a high percentage of our revenues; the risk of payment failure by any of our large customers, which could significantly harm our cash flows and profitability; our dependence upon the continued service of our senior management and key scientific personnel, and our ability to retain our existing customers or expand our customer base. You should read the financial information contained in this release in conjunction with the consolidated financial statements and related notes thereto included in our 2010 Annual Report on Form 20-F filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission's website at http://www.sec.gov. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our 2010 Annual Report on Form 20-F. Our results of operations for third-quarter 2011 are not necessarily indicative of our operating results for any future periods. All projections in this release are based on limited information currently available to us, which is subject to change. Although these projections and the factors influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release, except as required by law. Such information speaks only as of the date of this release.

Use of Non-GAAP and Pro-Forma Financial Measures

We have provided third-quarter and nine-month 2010 and 2011 gross profit, gross margin, operating income, operating margin, net income, and earnings per ADS on a non-GAAP basis, which excludes share-based compensation expenses, amortization and the deferred tax impact of acquired intangible assets and a $30 million termination fee received from Charles River Laboratories related to the proposed transaction, expenses incurred in connection with that transaction, and bonuses paid to employees after termination of that transaction. We believe both management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing underlying business performance and operating trends. We expect to continue providing these financial measures on a non-GAAP basis using a consistent method on a quarterly basis. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.

Profile of WuXi
Leading China-based contract research organization serving the

pharmaceutical, biotech, and medical device industries

More than three times larger than the next largest China-based competitor Virtually all of the largest pharmaceutical companies are customers, several for nearly a decade

World-class operations in China and the United States

One of the largest employers of chemists in the pharmaceutical industry

Founded in 2000 to provide compound synthesis services for

drug discovery
Has continuously been building capabilities and capacities along

the drug discovery and development value chain

Now offers a broad and integrated portfolio of laboratory and

manufacturing services
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WuXis Business Model Is Working

WuXi is building an alternative R&D engine for the global life-

sciences industry
This engine offers a technology platform and integrated

service offerings that will enable anyone and any company to discover and develop medicines
China is rapidly becoming an important hub for

pharmaceutical R&D, in part because of the rapid growth of the large Chinese pharmaceutical market itself
WuXi will continue to lead the Chinese life-sciences industry

by building capabilities and capacities to serve our customers better

Building WuXis Integrated R&D Service Platform: 2001

Target Identification/ Validation

Compound Synthesis

Assay Development

Screening for Drug Leads

Hit/Lead Identification

Lead Optimization/ Medicinal Chemistry

Discovery

ADME/ DMPK

Formulation

Manufacturing Process Scaleup

Research Manufacture

Toxicology

Preclinical

Phase 1 Clinical Trials

Phase 2 Clinical Trials

Phase 3 Clinical Trials

Commercial Manufacture

Phase 4 (PostMarketing) Studies

Bioanalytical Services

Clinical

Building WuXis Integrated R&D Service Platform: Today

Target Identification/ Validation

Compound Synthesis

Assay Development

Screening for Drug Leads

Hit/Lead Identification

Lead Optimization/ Medicinal Chemistry

Discovery

ADME/ DMPK

Formulation

Manufacturing Process Scaleup

Research Manufacturing

Toxicology

Preclinical

Phase 1 Clinical Trials

Phase 2 Clinical Trials

Phase 3 Clinical Trials

Commercial Manufacture

Phase 4 (PostMarketing) Studies

Bioanalytical Services

Clinical

WuXi PharmaTech Revenue Growth

(US$ in Millions)

~22%

$406+
Manufacturing

$334.1 U.S.-Based Laboratory Services

China-Based Laboratory Services $135.2

$253.5

$270.0

$69.9 $20.9 $33.8

2004 2005 2006 2007 2008 2009 2010 2011

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Update of 2011 Financial Guidance

Total Revenues
China-Based Laboratory Services Revenues U.S.-Based Laboratory Services Revenues Manufacturing Services Revenues Gross Margin

$402-$406 million
+14-15% + About 6% + At least 84% Approximately equal to 2010 level on GAAP basis, decline of about 1.5 percentage points on non-GAAP basis About 21% GAAP; about 24% non-GAAP

Exceeded
Achieved Achieved Achieved Achieved

Operating Margin

Achieved

Effective Tax Rate

Capital Expenditures

About 18%
$60-65 million

Achieved
Achieved

WuXi Business Segment Overview

China-Based Laboratory Services
Synthetic chemistry Medicinal chemistry Discovery biology DMPK/ADME Formulation development Toxicology Biologics development Biologic reagents manufacturing Clinical development

U.S.-Based Laboratory Services

Medical device safety testing
Biologic products safety testing Tissue processing services Cell banking

Manufacturing Services
API manufacturing Advanced intermediates manufacturing Process scale-up Process validation

Cell therapy
Microbiology testing Lot release testing

Under development: Biologics manufacturing (monoclonal antibodies, therapeutic proteins)

Bioanalytical services
Analytical/stability testing

China-Based Laboratory Services Grew Steadily

408
14-15% 18%

~251

58%

219.4
47%

185.8

258

171

2009

2010
Revenues ($ millions)

2011

2009

2010

2011

Number of Customers

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Toxicology Services Are Gaining Momentum

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US FDA GLP compliant, OECD

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and SFDA certified GLP facility for general toxicology and genetic toxicity studies
Contracts signed with Johnson

& Johnson and a second large pharmaceutical client

Six large pharmaceutical

2009

2010

2011

companies have begun to use our services

Revenue is ramping up rapidly;

Number of Customers

Suzhou site (tox and large animal DMPK) expected to break even by 4Q12
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Manufacturing Services
(US$ in Millions)

~75
~88%

Research manufacturing
Driven by innovative work of ~310

99%

39.9

process chemists
Produces advanced intermediates and

20.1

APIs for drug candidates in preclinical and clinical trials

2010 2011

2009

Facility expansion will be operational

Revenues ($ millions) 203 167 184

by 2Q12 and will double our capacity

Currently working on 4 Phase III, 17

Phase II, and 75 Phase I/preclinical programs, some of which will feed toxicology and commercial manufacturing Commercial manufacturing
Produces advanced intermediates for a

2009

2010

2011

major new drug

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Number of Projects

U.S.-Based Laboratory Services

~6% 18%

~80

75.5

Provides a broad range of testing

64.1

services for biologics and medical devices necessary for regulatory approval or product release
Excluding one tissue processing

customer, 2011 testing revenues grew double digits

2009

2010

2011

Revenues ($ millions)

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Investing for the Future

WuXi continues to build capabilities and capacities in the following

areas:
New Wuhan site for chemistry laboratories Expanded and integrated drug discovery capabilities and

capacities
Biologics discovery and development laboratory in Shanghai and

cGMP biologics manufacturing facility in WuXi

Expanded formulation development and drug product

manufacturing capacity
Clinical development capabilities Abgent marketing and sales capabilities and new reagent product

development capabilities

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Wuhan Chemistry Laboratories

Facility to open 1Q12 Wuhan is a major city in central China with a large talent pool Initial staff of ~ 200 people will eventually grow to more than

1,000
Allows WuXi to

leverage lower costs in central China

Receiving

strong local government support

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Integrated Biologics Services

Will offer full range of

services from discovery to commercial drug substance/ drug product manufacturing

Signed multiple integrated

development and manufacturing contracts

Built a strong team of

leaders with proven track records in US/EU

First cGMP Biologics Facility in China City of WuXi

Established a leading

monoclonal antibody technology platform in China

Expected to contribute to

revenue growth starting in 2013

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Abgent: Producer of Biological Research Reagents

One of the worlds leading manufacturers of antibodies,

peptides, and proteins for research, with catalog of about 20,000 antibodies
About 150 employees work in a 34,000 square-foot

laboratory in Suzhou and a 10,000 square-foot laboratory and office in San Diego
Expands our service offering to our existing customers and

to new customers in the life-sciences research community and taps into the rapidly growing Chinese life-sciences research market
In 2012, plan to develop new high-value-added products

and expanded sales and marketing capabilities in the U.S. and China to build a platform for strong growth in 2013 and beyond
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MedKey: China-Based Clinical Research Services

Provides services in regulatory affairs, Phase I-IV clinical trial

management, and site management for multinational and Chinese pharmaceutical companies filing products in China
Has operations in 15 Chinese cities, with offices in Shanghai,

Beijing, and Guangzhou, covering all regions of China

Provides WuXi with an existing clinical development service

capability and infrastructure in China, launching us into this business faster than we could accomplish on our own
Will focus in 2012 on significantly expanding clinical teams and

building capabilities
Two multinational CROs have recently bought China-based

clinical CROs, validating our interest in this business

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GAAP Revenues/Gross Profit/Operating Income

(US$ in Millions)

$101.1 $93.6 $88.5

$104.0

Revenues

$83.8

34.1 29.8 19.2 35.6% 22.9% 18.8

38.5%

34.7

37.1%

38.6

38.2 %

40.6

39.0% Gross Profit/Margin

21.2%

19.8

21.2%

21.5

21.3 %

22.2

21.4 % Operating Income/ Margin

3Q10

4Q10

1Q11

2Q11

3Q11

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Non-GAAP Revenues/Gross Profit/Operating Income

(US$ in Millions)

$101.1 $93.6 $88.5

$104.0

Revenues

$83.8

34.5 22.6

41.2% 27.0%

35.6

40.2% 25.3%

36.1 23.1

38.5% 24.7%

40.0

39.5%

41.8

40.2% Gross Profit/Margin

22.4

25.0

24.7%

24.9

24.0% Operating Income/ Margin

3Q10

4Q10

1Q11

2Q11

3Q11
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Uses of Cash
WuXi has about $200 million of cash and a $29 million

bank loan
We see several good opportunities to use this cash and

our free cash flow for targeted investments, primarily in China, to continue to build our capabilities and capacity
A convertible note of $36 million will be redeemed on

February 9 if the stock price is below $12.60, reducing the share count for calculating diluted EPS similar to a share buyback

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2012 Growth Strategy

Grow China-based Laboratory Services by leveraging our

integrated discovery and development capabilities in medicinal chemistry, CMC, toxicology, and IND services
Advance manufacturing project pipeline with our strong

process and research manufacturing capabilities

Build Chinas leading biologics drug discovery and

development platform
Continue to drive U.S.-based Laboratory Services to broaden

testing service offerings and gain market share

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WuXi is Well Positioned to Continue to Grow

The pharmaceutical industry is undergoing transformational

change and adopting a more collaborative and networked R&D model for drug discovery and development
WuXi is building an integrated open-access R&D services

platform as the industrys alternative R&D engine to enable anyone and any company to discover and develop new drugs
Outsourcing of R&D increases pharmaceutical companies

flexibility and agility and reduces their fixed costs

Offshore outsourcing of R&D to China will accelerate because

of the fast-growing Chinese pharmaceutical market and growing R&D capabilities in China
WuXi will work hard to become THE technology platform

company of Chinas life science industry

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Appendix
GAAP to Non-GAAP Reconciliations

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Third-Quarter 2011 GAAP to Non-GAAP Reconciliation

3Q2011
(US$ in millions)

Share-Based Amortization of Compensation Acquired Non-GAAP GAAP Expenses Intangible Assets

Net revenues Cost of revenues Selling & marketing expenses General & administrative expenses Other income/(expenses), net Income tax expenses Net income

104.0 (63.4) (2.7) (15.6) 3.0 (4.7) 20.6 2.3 (0.1) 0.3 1.4 0.9 0.4

104.0 (62.1) (2.7) (14.2) 3.0 (4.8) 23.2

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Nine-Month 2011 GAAP to Non-GAAP Reconciliation

9M2011
(US$ in millions)

Share-Based Amortization of Compensation Acquired Non-GAAP GAAP Expenses Intangible Assets

Net revenues Cost of revenues Selling & marketing expenses General & administrative expenses Other income/(expenses), net Income tax expenses Net income

298.6 (184.8) (7.2) (43.0) 6.6 (12.7) 57.5 8.4 (0.4) 0.6 5.6 2.8 1.0

298.6 (181.0) (7.2) (37.4) 6.6 (13.1) 66.5

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