China-based WuXi AppTec Co., Ltd (SHA: 603259, HKG: 2359) has released its financial report for the first half of 2023, recording revenues of RMB 18.871 billion (USD 2.6 billion), representing a 6.28% year-on-year (YOY) growth. Net profits reached RMB 4.761 billion (USD 666 million), marking a significant increase of 23.67% YOY.
CRDMO and CTDMO Business Model Drives Growth
WuXi AppTec’s unique Contract Research, Development, and Manufacturing Organization (CRDMO) and Contract Testing, Development, and Manufacturing Organization (CTDMO) business models have been instrumental in its steady growth. WuXi Chemistry generated RMB 13.47 billion (USD 1.9 billion) in revenue, up 3.8% YOY. During this period, the company managed a total of 583 molecules, including 8 commercialized and Phase III programs. Revenue from WuXi Testing reached RMB 3.09 billion, up 18.7% YOY, while WuXi Biology generated RMB 1.23 billion, up 13.0% YOY.
Cell and Gene Therapy CTDMO Business Expansion
Revenue from the cell and gene therapy CTDMO business (WuXi ATU) stood at RMB 710 million (USD 99.4 million), up 16.0% YOY. In the first half of the year, WuXi AppTec helped customers complete a biologic license application (BLA) filing for a best-in-class tumor infiltrating lymphocytes (TIL) project in the US and a BLA for a lentivirus vector (LVV) project for CAR-T cell therapy in China.
Domestic New Drug R&D Service Department Performance
The revenue of the domestic new drug research and development service department (WuXi DDSU) was RMB 340 million, up 24.9% YOY. During the period, the company completed 12 IND applications for clients and obtained 11 clinical trial approvals (CTAs).
Customer Acquisition and Order Growth
In the first half of 2023, WuXi AppTec added more than 600 new customers. Excluding specific commercial production projects, the company’s orders in hand increased by 25% YOY. Geographically, revenue from customers in the United States leaped by 42% YOY to RMB 12.37 billion, revenue from customers in Europe increased by 19% YOY to RMB 2.22 billion, revenue from customers in China increased by 6% YOY to RMB 3.23 billion, and revenue from customers in other regions increased by 6% YOY to RMB 1.04 billion.
Outlook for 2023
WuXi AppTec is expected to achieve a 5%-7% annual revenue growth in 2023, reflecting the company’s continued expansion and success in its CRDMO and CTDMO business models across various regions and therapeutic areas.-Fineline Info & Tech
