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TheStreet Open House

WuXi PharmaTech Announces Purchase Of Ordinary Shares From General Atlantic

SHANGHAI, Feb. 15, 2012 /PRNewswire-Asia/ -- WuXi PharmaTech (NYSE: WX), a leading pharmaceutical, biotechnology, and medical-device research and development outsourcing company, with operations in China and the United States, announced that today it had in a negotiated transaction agreed to purchase from investment funds affiliated with global growth investor General Atlantic LLC ("General Atlantic") all of the WuXi ordinary shares General Atlantic received on February 12, 2012, following the conversion in full of the $35 million principal amount of convertible notes plus accrued interest of approximately $864,000 held by General Atlantic. The per-ADS equivalent purchase price of $13 was established based on a discount of slightly over 5% of the ADS closing price on February 13, 2012. The transaction was reviewed and approved by the disinterested members of the audit committee of WuXi's board of directors. WuXi expects the transaction to close on or about February 24, 2012. WuXi will use existing cash balances to pay for the transaction.

In February 2007, third-party investors, including General Atlantic, purchased $40 million principal amount of convertible notes from WuXi, with the notes maturing on February 9, 2012. In 2008, $5 million principal amount of notes were converted into ordinary shares. On February 7, 2012, General Atlantic elected to convert the remaining $35 million principal amount of notes plus accrued interest of approximately $864,000 into 22,771,000 ordinary shares at a conversion price of $1.575 per ordinary share, equivalent to 2,846,375 ADSs and a per-ADS conversion price of $12.60.

The potential impact of the conversion of the notes to ordinary shares has been reflected in the earnings per share calculations in WuXi's previous financial reporting, in accordance with generally accepted accounting principles. With WuXi's purchase of these shares today, they will be removed from shares outstanding for all future earnings per share calculations.

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