China-based Contract Research, Development, and Manufacturing Organization (CRDMO) WuXi Biologics (HKG: 2269) has released its unaudited interim financial report for the period ended June 30, 2023. The report indicates a 17.8% year-on-year (YOY) increase in revenues, reaching RMB 8.49 billion (USD 1.17 billion). This growth is attributed to the successful implementation of the “follow and win the molecule” strategy and the expansion of service scope, which now includes antibody drug conjugate (ADC) and bispecific antibody (BsAb) technology platforms.
Net Profit Decline Amid Increased Sales and Marketing Expenses
Despite the revenue increase, WuXi Biologics’ net profit decreased by 10.8% YOY to 2.34 billion yuan, primarily due to the rise in sales and marketing expenses. This investment in marketing and sales is a strategic move to capture a larger market share and enhance the company’s visibility in the competitive CRDMO space.
Steady Growth in CRDMO Business and Project Pipeline Expansion
WuXi Biologics’ CRDMO business maintained steady growth in the first half of 2023. The total number of comprehensive projects increased to 621, with 46 new comprehensive projects added. The number of clinical late-stage projects and commercial production projects rose to 44 and 22, respectively. The “win the molecule” strategy contributed 11 external projects to the group, including 6 clinical post-production and commercial production projects, with a total contract value exceeding USD 1 billion. As of June 30, 2023, the group’s total outstanding orders and outstanding service orders reached USD 20.11 billion and USD 13.56 billion, respectively, providing a solid foundation for both short-term and long-term business development.
Revenue Boost from Resumed Clinical Trials and Late-Stage Projects
Thanks to the resumption of clinical trials post-COVID-19, early project income increased by 51.8% YOY to RMB 1.95 billion. Revenue from clinical late-stage and commercial production increased to RMB 3.6 billion, accounting for 42.4% of the total revenue in the first half of 2023. As of June 30, 2023, WuXi Biologics’ integrated technology platform hosted 105 BsAb projects, 110 ADC projects, and 21 vaccine projects, showcasing the company’s diverse and robust pipeline.
Strategic Partnerships and Subsidiary Listing
WuXi Biologics struck a licensing deal with GSK plc (NYSE: GSK) in January, concerning multiple bi- and multi-specific T-cell engaging (TCE) antibodies. Additionally, the company spun off its subsidiary WuXi XDC for a listing in Hong Kong, further expanding its footprint in the biopharmaceutical industry.-Fineline Info & Tech
