<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000 Commission File number 0 - 27698
CHIREX INC.
(Exact name of registrant as specified in its charter)
DELAWARE 04-3296309
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
300 Atlantic Street
Suite 402
Stamford, Connecticut 06901
(Address of principle executive office) (Zip Code)
(203) 351-2300
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
filing requirements for the past 90 days.
Yes X No
----- ------
Number of shares outstanding of the issuer's classes of common stock as of April
24, 2000.
Class Number of Shares Outstanding
- -------------------------------------- -------------------------------
Common Stock, par value $.01 per share 15,250,916
1
<PAGE>
CHIREX INC.
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of
December 31, 1999 and March 31, 2000 3
Consolidated Statements of Operations
for the three months ended March 31, 1999 and 2000 4
Consolidated Statements of Comprehensive Operations
for the three months ended March 31, 1999 and 2000 4
Consolidated Statements of Cash Flows for the
three months ended March 31, 1999 and 2000 5
Notes to Consolidated Interim Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders. 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURE 12
</TABLE>
This Quarterly Report on Form 10-Q contains "forward-looking statements,"
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, as amended. These forward-looking
statements are subject to a number of risks and uncertainties, many of which are
beyond the Company's control. Forward-looking statements are typcially
identified by the words "believe," "expect," "anticipate," "intend," "estimate,"
"plan" and similar expressions. Actual results could differ materially from
those contemplated by these forward-looking statements as a result of factors
("Cautionary Statements") such as product development and market acceptance
risks, product manufacturing risks, the impact of competitive products and
pricing, the results of current and future licensing and other collaborative
relationships, the results of financing efforts, developments regarding
intellectual property rights and litigation, risks of product non-approval or
delays or post-approval reviews by the U.S. Food and Drug Administration or
foreign regulatory authorities and those described under "Risk Factors" on page
26 of our Annual Report on Form 10-K for the year ended December 31, 1999. In
light of these risks and uncertainties, there can be no assurance that the
results and events contemplated by the forward-looking information contained in
this Quarterly Report will in fact transpire. Readers are cautioned not to place
undue reliance on these forward-looking statements. ChiRex does not undertake
any obligation to update or revise any forward-looking statements. All
subsequent written or oral forward-looking statements attributable to ChiRex or
persons acting on behalf of ChiRex are expressly qualified in their entirety by
the Cautionary Statements.
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1
FINANCIAL STATEMENTS
CHIREX INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1999 AND MARCH 31, 2000
(dollars in thousands except per-share amounts)
<TABLE>
<CAPTION>
December 31, March 31,
1999 2000
----------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash $ 4,480 $ 6,805
Trade and other receivables 31,096 17,446
Inventories 27,503 25,770
Other current assets 5,323 7,571
----------------- -----------------
Total current assets 68,402 57,592
Property, plant and equipment, net 163,147 164,128
Intangible assets, net 30,287 29,905
Other non-current assets 1,216 1,135
----------------- -----------------
Total assets $ 263,052 $ 252,760
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Accounts payable $ 8,763 $ 13,502
Accrued expenses 16,071 11,234
Current portion of long-term debt 9,720 9,540
Current portion of capital-lease obligations 1,683 1,500
Income taxes payable 1,530 -
----------------- -----------------
Total current liabilities 37,767 35,776
Long-term debt 38,880 35,775
Deferred income taxes 14,487 14,938
Capital-lease obligation 4,272 3,714
Deferred income 7,599 6,149
----------------- -----------------
Total liabilities 103,005 96,352
----------------- -----------------
Commitments and Contingencies - -
Stockholders' equity:
Preferred stock ($0.01 par value, 4,000,000 authorized
none issued and outstanding in 1999 and 2000) - -
Common stock ($0.01 par value, 30,000,000 shares authorized,
15,173,290 and 15,224,516 shares issued and outstanding on
December 31, 1999 and March 31, 2000, respectively) 152 152
Additional paid-in capital 158,453 159,337
Retained earnings (deficit) 60 (2,492)
Cumulative translation adjustment 1,382 (589)
----------------- -----------------
Total stockholders' equity 160,047 156,408
----------------- -----------------
Total liabilities and stockholders' equity $ 263,052 $ 252,760
================= =================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE>
CHIREX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS
(unaudited)
(in thousands, except per-share amounts)
<TABLE>
<CAPTION>
Three-Months Ended
March 31,
-------------------------------
1999 2000
--------- --------
<S> <C> <C>
Revenues:
Manufacturing division $ 29,924 $ 23,485
Development division 4,256 2,624
-------- --------
Total revenues 34,180 26,109
Cost of goods sold (22,799) (22,944)
-------- --------
Gross profit 11,381 3,165
Selling, general and administrative 3,325 4,535
Research and development 1,321 1,196
-------- --------
Operating profit (loss) 6,735 (2,566)
Interest expense, net (2,021) (953)
Amortization of goodwill (291) (381)
-------- --------
Income (loss) before income taxes 4,423 (3,900)
(Provision) benefit for income taxes (1,516) 1,348
-------- --------
Net income (loss) $ 2,907 $ (2,552)
======== ========
Weighted average common shares outstanding:
Basic 12,092 15,182
======== ========
Diluted 12,772 15,182
======== ========
Net income (loss) per common share:
Basic $ 0.24 $ (0.17)
======== ========
Diluted $ 0.23 $ (0.17)
======== ========
CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS
Three-Months Ended
March 31,
-------------------------------
1999 2000
---------- ----------
Net income (loss) $ 2,907 $(2,552)
Change in cumulative translation adjustment (2,539) (1,971)
--------- ----------
Comprehensive net income (loss) $ 368 $(4,523)
========= ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE>
CHIREX INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 2000
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31,
----------------------------------
1999 2000
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 2,907 $ (2,552)
Adjustments to reconcile net income (loss) to cash provided
by operating activities:
Depreciation & amortization 3,750 3,669
Deferred tax provision 1,565 663
Non-cash charges - 100
Changes in assets and liabilities:
Receivables (4,347) 13,403
Inventories 1,115 1,257
Other assets (1,082) (391)
Accounts payable and accrued expenses (678) 288
Income taxes payable 187 (2,769)
Deferred income (417) (1,357)
--------------- ---------------
Net cash provided from operating activities 3,000 12,311
--------------- ---------------
Cash flows from investing activities:
Capital expenditures (7,588) (7,554)
--------------- ---------------
Net cash used in investing activities (7,588) (7,554)
--------------- ---------------
Cash flows from financing activities:
Payments on revolving credit and term loan facilities, net (31,474) (2,370)
Proceeds from sale and leaseback, net 2,061 -
Payments on capital-lease obligations (622)
Proceeds from exercise of stock options 269 785
Issuance of common stock, net 51,206 -
--------------- ---------------
Net cash provided from (used in) financing activities 22,062 (2,207)
--------------- ---------------
Effect of exchange rate changes on cash (38) (224)
--------------- ---------------
Net increase in cash 17,436 2,325
Cash at beginning of period 128 4,480
--------------- ---------------
Cash at end of period $ 17,564 $ 6,805
=============== ===============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE>
CHIREX INC
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Nature of Operations and Principles of Consolidation
Nature of Operations
ChiRex Inc., The Drug Substance Company, (www.chirex.com) is an integrated
--------------
pharmaceutical outsourcing company that provides a comprehensive range of
services to pharmaceutical and biopharmaceutical companies, primarily contract
process research and development and contract manufacturing of active
pharmaceutical ingredients. The Company operates through two operating
divisions, the development division and the manufacturing division. The
development division is engaged in every aspect of drug substance development
including discovery, development and manufacture of material for clinical
trials. The manufacturing division produces bulk active pharmaceutical
ingredients. Together, the two divisions span all of the steps needed to prepare
the Drug Substance subsection of a New Drug Application. The range of services
provided by the company include:
. proprietary process research to create and produce previously unaffordable
chiral materials using the Company's patented process chemistry technologies,
and unique proprietary building blocks that simplify the drug discovery
process,
. customer-sponsored innovative process research to solve pre-clinical and
clinical process chemistry challenges such as route design, route development
and demonstration and route optimization using either traditional process
chemistry techniques or proprietary techniques,
. scale-up and supply of clinical trial quantities of active pharmaceutical
ingredients including validated process demonstration, analytical methods
development, hazard evaluation, and pilot plant production, and
. production of commercial-scale active ingredients for launch and later for
sale in all markets globally.
ChiRex conducts its operations in four FDA cGMP facilities in Boston,
Massachusetts; Malvern, Pennsylvania; Dudley, England; and Annan, Scotland.
Principles of Consolidation
The interim financial statements, in the opinion of management, reflect all
adjustments (including normal recurring adjustments) necessary for a fair
presentation of the results for the interim periods ended March 31, 2000 and
1999. The results of operations for the interim period are not necessarily
indicative of the results of operations expected for the fiscal year.
2. Net Income (Loss) per Common Share
Basic income (loss) per common share for the first quarter ended March 31,
1999 and 2000 was computed by dividing the net income (loss) by the weighted
average shares outstanding during the period in accordance with Statement of
Financial Accounting Standards No. 128, Earnings per Share. Using the Treasury
Stock method, the Company calculates the potential dilution from stock options
at the average market stock price during the period based on the assumption that
all stock options are exercised whether vested or non-vested, and simultaneously
the proceeds of exercise are used to acquire the Company's stock at the average
market price during the period. Since the effect of the assumed exercise of
stock options of 503,000 shares in the first quarter of 2000 are anti-dilutive,
basic and diluted loss per common share as presented on the statement of
operations are the same. In the first quarter of 1999, 680,000 of common stock
equivalents related to stock options are included in diluted shares outstanding.
6
<PAGE>
3. Acquisition of Cauldron Process Chemistry Business
On May 17, 1999, the Company, through a subsidiary, purchased the Cauldron
Process Chemistry business in Malvern, Pennsylvania. The Company paid
approximately $6.9 million in cash including transaction costs. The acquisition
was accounted for as a purchase. Accordingly, the assets and liabilities
acquired and the results of operations and cash flows are included in the
consolidated financial statements from the date of acquisition. The Company
recorded goodwill of approximately $5.3 million associated with the acquisition,
which is being amortized on a straight-line basis over 15 years.
4. Segment Information
The Company operates through two operating divisions, the development division
and the manufacturing division. The Company's development division is engaged
in every aspect of drug substance development from discovery support before
submission of IND and process research and development and manufacture of
material for clinical trials. The Company's manufacturing division produces
bulk active pharmaceutical ingredients.
The following table shows data for the Company by segment for the quarters
ending March 31 (in thousands):
<TABLE>
1999 2000
-------------- --------------
<S> <C> <C>
Revenues:
Manufacturing division $29,924 $23,485
Development division 4,256 2,624
-------------- --------------
Total $34,180 $26,109
============== ==============
Operating income:
Manufacturing division $ 6,719 $ 1,541
Development division 2,611 (736)
-------------- --------------
Subtotal 9,330 805
Management, sales & administration (1,274) (2,175)
Research & development (1,321) (1,196)
-------------- --------------
Total $ 6,735 $(2,566)
============== ==============
</TABLE>
5. Change in Depreciable Lives
As a result of a review of the Company's fixed asset depreciable lives, the
Company determined that the estimated useful life for $54.8 million of
equipment is 15 years, rather than 7-10 years. This change in estimate has
been treated on a prospective basis and resulted in $0.7 million less
depreciation expense than would have been recorded using the prior depreciable
lives. The impact on the remaining fiscal 2000 quarters is expected to be
approximately $0.7 million per quarter compared to 1999.
7
<PAGE>
6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
historical consolidated financial statements and the notes thereto included
elsewhere herein.
Introduction
ChiRex Inc., The Drug Substance Company, (www.chirex.com) is an integrated
--------------
pharmaceutical outsourcing company that provides a comprehensive range of
services to pharmaceutical and biopharmaceutical companies, primarily contract
process research and development and contract manufacturing of active
pharmaceutical ingredients. The Company operates through two operating
divisions, the development division and the manufacturing division. The
development division is engaged in every aspect of drug substance development
including discovery, development and manufacture of material for clinical
trials. The manufacturing division produces bulk active pharmaceutical
ingredients. Together, the two divisions span all of the steps needed to prepare
the Drug Substance subsection of a New Drug Application. The range of services
provided by the company include:
. proprietary process research to create and produce previously unaffordable
chiral materials using the Company's patented process chemistry technologies,
and unique proprietary building blocks that simplify the drug discovery
process,
. customer-sponsored innovative process research to solve pre-clinical and
clinical process chemistry challenges such as route design, route development
and demonstration and route optimization using either traditional process
chemistry techniques or proprietary techniques,
. scale-up and supply of clinical trial quantities of active pharmaceutical
ingredients including validated process demonstration, analytical methods
development, hazard evaluation, and pilot plant production, and
. production of commercial-scale active ingredients for launch and later for
sale in all markets globally.
ChiRex conducts its operations in four FDA cGMP facilities in Boston,
Massachusetts; Malvern, Pennsylvania; Dudley, England; and Annan, Scotland.
A significant portion of the Company's revenues and expenses are denominated
in Great Britain pounds sterling, and to prepare the Company's financial
statements such amounts are translated into US Dollars at average exchange rates
in accordance with generally accepted accounting principles. The average
exchange rate used to make this translation in the first quarter of 1999 and
2000 was $1.60 per (Pounds)1.00. Period-to-period changes in exchange rates can
affect the comparability of the Company's financial statements.
Results of Operations
Three-month period ended March 31, 2000 and 1999
The table below sets forth the revenues by segment for the Company for the
quarters ended March 31, 1999 and 2000 (in thousands):
<TABLE>
Revenue by Segment 1999% 2000% %
------- ------- -----
<S> <C> <C> <C> <C>
Manufacturing division $29,924 87.5% $23,485 89.9%
Development division 4,256 12.5% 2,624 10.1%
------- -------
Total $34,180 $26,109
======= =======
</TABLE>
Total revenues in the first quarter decreased $8.1 million to $26.1 million in
the first quarter of 2000, from $34.2 million in the comparable period in 1999.
Manufacturing division revenues decreased $6.4 million to $23.5 million from
$29.9 million in the comparable period in 1999 because of lower shipments to
GlaxoWellcome reflecting the previously
8
<PAGE>
announced supply agreement shortfall, and the anticipated decline in shipments
to Sanofi. Development division revenues decreased $1.6 million to $2.6 million
from $4.2 million in the comparable period in 1999. Process chemistry revenues
from the Company's Dudley, Malvern and Boston facilities were 90% higher than
last year due to an increase in the number of development projects and the
acquisition of the Cauldron Process Chemistry business in the second quarter of
1999 and the opening of the Boston facility in April 1999. This increase was
more than offset by lower development division materials and validation revenues
because last year's results included the completion of a significant validation
campaign.
Cost of goods sold increased $0.1 million to $22.9 million in the first
quarter of 2000 from $22.8 million in 1999, and gross margin percentage
decreased to 12.1% in the first quarter of 2000 from 33.3% in 1999. This
decline is due to the impact of lower sales volume particularly in the
manufacturing division and the additional investment in the development division
to increase capacity.
Selling, general and administrative expenses increased $1.2 million to $4.5
million in the first quarter of 2000 from $3.3 million last year. This increase
is due primarily to expenses associated with the formation and expansion of the
development division, increased business development efforts and the cost of
company-wide information systems implemented in 1999.
Research and development expenses decreased $0.1 million to $1.2 million in
the first quarter of 2000. This decrease is due to research projects being
customer sponsored versus Company sponsored.
Amortization of goodwill increased $0.1 million in the first quarter of 2000
from the comparable prior-year period as a result of the acquisition of the
Cauldron Process Chemistry business in May 1999.
Interest expense, net of interest income, was $1.0 million in the first
quarter of 2000 compared to $2.0 million in the first quarter of 1999. This was
due to lower borrowing levels as proceeds from the stock offering in March 1999
were utilized to reduce borrowings, and higher interest income generated from
overnight investments of cash balances.
Income tax was a benefit of $1.3 million in the first quarter of 2000, an
effective tax rate of 34.6%, compared to an effective tax rate of 34.3% in the
comparable period in 1999.
As a result of the factors described above, the Company reported a net loss of
$2.6 million in the first quarter of 2000 compared to net income of $2.9 million
for the comparable prior-year period.
Acquisition of Cauldron Process Chemistry Business
In May 1999, the Company purchased the Cauldron Process Chemistry business in
Malvern, Pennsylvania, a leader in the provision of rapid-response process
research and development for the pharmaceutical industry. The Cauldron business
significantly expands the Company's process research and development
capabilities in the United States, adds to its customer base and provides a
critically important customer service. The Company paid approximately $6.9
million in cash including transaction costs. The acquisition was accounted for
as a purchase. Accordingly, the assets and liabilities acquired are included in
the consolidated balance sheet as of March 31, 2000 and the results of
operations and cash flows from the date of acquisition. The Company recorded
goodwill of approximately $5.3 million associated with the acquisition, which is
being amortized on a straight-line basis over 15 years.
Liquidity and Capital Resources
Historically, the Company's primary sources of funding have been cash flow
from operations, sales of its common stock and borrowings under its revolving-
credit and term-loan facilities. In March 1999, the Company consummated the
sale of 2,875,000 shares of its common stock issued to the public. This
resulted in net proceeds to the Company of approximately $51.1 million. The
Company used the proceeds from the stock offering to repay bank borrowings
outstanding under the Facilities Agreement.
9
<PAGE>
Cash provided from operating activities was $12.3 million in the three months
ended March 31, 2000, compared to $3.0 million in the comparable period in 1999
as decreased profitability was more than offset by cash generated from a
reduction in working capital, particularly accounts receivable and inventories.
Net cash used in investing activities in the first three months of 2000 was
$7.6 million, which is comparable to the amount used in same period of 1999.
Capital spending of $7.6 million in 2000 consists of expenditures to complete
the expansion of the Boston facility and building of the pilot plant at Annan in
the development division, plant maintenance at both the Annan and Dudley
manufacturing division sites, and spending to accommodate new product
introductions.
Net cash used for financing activities for the first three months of 2000 of
$2.2 million is primarily the result of net proceeds from exercise of stock
options, offset by the repayment of borrowings outstanding under the Company's
term-loan facility of $2.4 million and payments of capital lease obligations.
The Company expects to satisfy its cash requirements, including the
requirements of its subsidiaries, through internally generated cash and
borrowings. As of March 31, 2000 the Company had approximately $6.8 million in
cash and cash equivalents and $39.8 million ((Pounds)25.0 million) of
availability under its revolving-credit facility.
Year 2000 Disclosure
The Company has dedicated internal resources to identify and resolve "Year
2000" compliance issues with respect to computer systems and applications
utilized by the Company. The Company has also engaged external resources,
including hiring an independent consulting firm, and has purchased necessary
computer software upgrades to become year 2000 compliant. The Company developed
and performed comprehensive testing procedures once necessary software and
equipment had been installed to validate year 2000 compliance. The Company
implemented a year 2000 compliant management information system at all locations
in 1999. The Company expects to spend approximately $7.1 million on systems and
equipment, which are year 2000 compliant and will account for these costs in
accordance with current accounting guidance.
The Company believes that the systems at two of the three production
facilities at Annan are year 2000 compliant. The Company expects to spend
approximately $1.7 million in 2000 upgrading the third production facility's
computer systems and applications and will account for these costs in accordance
with current accounting guidance.
The Company experienced no significant Year 2000 issues in 2000. No assurance
can be given that Year 2000 compliance issues will not materialize and be
resolved without future disruption or that the Company will not incur
significant additional expense. In addition, the failure of certain of the
Company's significant suppliers and customers to address the Year 2000
compliance issues could have a material adverse effect on the Company.
Foreign Currency
The Company currently expects revenues from its products outside the United
States will continue to be a substantial percentage of its net revenues. The
Company believes it has a natural cash currency hedge because its operating
expenses and revenues tend to be denominated in matched currencies. Also the
Company has partly offset foreign currency-denominated assets with foreign
currency-denominated liabilities.
Financial results of the Company could be adversely or beneficially affected
by fluctuations in foreign exchange rates. Fluctuations in the value of foreign
currencies will affect the U. S. dollar value of the Company's net investment in
its foreign subsidiaries, with related effects included in a separate component
of stockholders' equity titled cumulative translation adjustment. In 2000, the
cumulative translation adjustment declined $2.0 million due to the reduction in
the Great Britain pounds sterling exchange rate to $1.59 to (Pounds)1.00 at
March 31, 2000 from $1.62 to (Pounds)1.00 at December 31, 1999. Operating
results of foreign subsidiaries are translated into U.S. dollars at average
monthly exchange rates and
10
<PAGE>
balance sheet amounts are translated at period-end exchange rates. In addition,
the U.S. dollar value of transactions based in foreign currency also fluctuates
with exchange rates. The Company expects that the largest foreign currency
exposure will result from activity in Great Britain Pounds Sterling, Euros, and
U.S. Dollars.
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
-----------------
-NONE-
ITEM 2. Changes in Securities and Use of Proceeds
-----------------------------------------
-NONE-
ITEM 3. Defaults Upon Senior Securities
-------------------------------
-NONE-
ITEM 4. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
-NONE-
ITEM 5. Other Information
-----------------
-NONE-
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
-NONE-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHIREX INC.
Date: April 28, 2000 By: /s/ Jon E. Tropsa
-------------------------
Jon E. Tropsa
Vice President, Finance
12
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
27 Financial Data Schedule.
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM ChiRex Inc.'s first
quarter 2000 Form 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
Form 10-Q.
</LEGEND>
<MULTIPLIER> 1000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1.59
<CASH> 6,805
<SECURITIES> 0
<RECEIVABLES> 17,446
<ALLOWANCES> 0
<INVENTORY> 25,770
<CURRENT-ASSETS> 7,571
<PP&E> 167,797
<DEPRECIATION> 3,669
<TOTAL-ASSETS> 252,760
<CURRENT-LIABILITIES> 35,776
<BONDS> 35,775
0
0
<COMMON> 152
<OTHER-SE> 156,256
<TOTAL-LIABILITY-AND-EQUITY> 252,760
<SALES> 23,485
<TOTAL-REVENUES> 26,110
<CGS> (22,944)
<TOTAL-COSTS> 5,731
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (953)
<INCOME-PRETAX> (3,900)
<INCOME-TAX> 1,348
<INCOME-CONTINUING> (2,552)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,552)
<EPS-BASIC> (0.17)
<EPS-DILUTED> (0.17)
</TABLE>
