WuXi AppTec Co., Ltd (SHA: 603259), the China-based Contract Development and Manufacturing Organization (CDMO) facing potential restrictions under the Biosecure Act—set to ban drugmakers with U.S. government contracts from utilizing Chinese services post-2032—reported its financial results for the first three quarters of 2024. In the third quarter, revenues reached RMB 10.461 billion (USD 1.47 billion), reflecting a 4.6% year-on-year increase when excluding COVID-19 commercial projects. For the first nine months, revenues totaled RMB 27.702 billion (USD 3.89 billion), also up 4.6% year-over-year when adjusting for COVID-19. Notably, revenue from the global top 20 pharmaceutical companies amounted to RMB 11.22 billion (USD 1.57 billion), a substantial 23.1% increase year-on-year, excluding COVID-19 projects.
Breaking down revenue by sector, the chemical business generated RMB 7.88 billion (USD 1.1 billion) in the third quarter, up 1.4% year-on-year (26.4% excluding COVID-19). However, revenue for the first three quarters was RMB 20.09 billion (USD 2.82 billion), down 5.4% year-on-year, yet up 10.4% when excluding COVID-19. The testing segment reported RMB 1.6 billion (USD 22.44 million), down 9.3% YOY, compared to RMB 4.62 billion (USD 64.8 million), a decline of 4.9% for the first nine months. The biology business observed revenues of RMB 657 million (USD 92.16 million), a slight decrease of 0.8%, against RMB 1.826 billion (USD 25.61 million) for the first three quarters, down 3.6%. The high-end therapy CTDMO business recorded RMB 278 million (USD 39 million), a drop of 11.6%, while revenues for the first nine months were RMB 853 million (USD 119.65 million), down 17%. The domestic new drug R&D service department saw revenues plunge to RMB 32.52 million (USD 4.61 million), a staggering 78.2% decline, compared to RMB 290 million (USD 40.68 million), down 41% for the first three quarters. Other businesses reported third-quarter revenues of RMB 9.54 million (USD 1.34 million), up 44.6%, but down to RMB 21.19 million (USD 2.98 million), a decline of 32.6% for the year to date.
For the full year 2024, WuXi AppTec projects annual revenues between RMB 38.3 billion (USD 5.4 billion) and RMB 40.5 billion (USD 5.68 billion), alongside free cash flow estimates of RMB 60 billion (USD 8.42 billion) to RMB 70 billion (USD 9.82 billion), with an adjusted non-IFRS attributable net profit margin consistent with the previous year.- Flcube.com
