Morgan Stanley Overweight Rating On WuXi Pharmatech (WX)

In a recent report, Morgan Stanley has reiterated an Overweight rating on WuXi Pharmatech WX after 1Q results show the fundamentals are stronger than ever. In the report, Morgan Stanley said, "We expect large-scale commercial manufacturing commencing in 2011 and solid contribution from toxicology services starting in 2012 to rejuvenate WX's growth profiles. Key concerns are rising labor cost, which is being addressed by moving discovery chemistry services to Wuhan, and RMB appreciation, which is being managed by a rare active hedging program." WuXi Pharmatech closed yesterday at $18.00.