WuXi AppTec Co., Ltd (SHA: 603259, HKG: 2359) has released its financial report for the first quarter of 2023, recording RMB 8.964 billion (USD 1.29 billion) in revenues, marking a 5.77% year-on-year (YOY) increase, and net profits of RMB 2.168 billion (USD 313.6 million), up 31.97% YOY.
Client Expansion and Geographic Revenue Growth
During the quarter, the company added over 310 new clients, joining a base of more than 6,000 active clients. Revenue from American customers reached RMB 5.41 billion (USD 782.6 million), up 3% YOY, or 22% YOY after excluding COVID-19 commercial projects. European customer revenue was RMB 1.44 billion (USD 208.3 million), up 19% YOY. Chinese customer revenue was RMB 1.67 billion (USD 241.5 million), up 5% YOY, and revenue from customers in other regions was RMB 440 million (USD 63.6 million), up 12% YOY. Revenue from original customers, excluding COVID-19 commercial projects, accounted for 99% of the company’s total revenue, amounting to RMB 8.88 billion (USD 1.28 million), up 7% YOY, or 18% YOY after exclusions. The revenue from newly added customers was RMB 80 million (USD 11.57 million). The company’s unique CRDMO and CTDMO business models, along with its global “long tail customer” strategy, have continued to increase customer penetration. Revenue from the top 20 pharmaceutical enterprises worldwide was RMB 3.15 billion (USD 455.7 million), down 17% YOY, but up 1% YOY after excluding COVID-19 commercial projects. Revenue from other global customers was RMB 5.82 billion (USD 841.9 million), up 25% YOY, with biotechnology enterprise customers experiencing a strong 53% YOY growth in the first quarter of 2023. Customers using multiple business department services contributed RMB 7.95 billion (USD 1.15 billion), up 7% YOY, and 21% YOY after excluding COVID-19 commercial projects, accounting for 89% of the company’s revenue.
Business Segment Revenues and Growth
The chemical business segment revenue was RMB 6.433 billion (USD 930.6 million), up 5.15% YOY, with a growth rate of 21.8% excluding COVID-19 commercial projects. The testing business revenue was RMB 1.453 billion (USD 210.1 million), up 13.56% YOY. The biology business revenue was RMB 577 million (USD 83.4 million), up 8.33% YOY, focusing on building biological capabilities related to new molecular types, including targeted protein degradation and conjugated molecules. By the end of Q1 2023, Wuxi Apptec had delivered over 260 antibody-drug conjugate (ADC) projects and established a comprehensive capability platform from early discovery to preclinical pharmacodynamics research. The cell and gene therapy (CGT) CTDMO business income was RMB 324.5 million (USD 46.9 million), up 8.65% YOY. Wuxi Apptec became the first CGT CDMO in China to pass the on-site inspection of CFDI LVV registration by assisting a Chinese customer in completing the BLA of a Lentivirus vector (LVV) project for CAR-T cell therapy. The domestic new drug research and development service department’s revenue was RMB 166 million (USD 24 million), down 31.02% YOY, primarily due to decreased demand from Chinese customers. The company expects future revenue growth to come from drug sales revenue sharing. In Q1 2023, the company completed IND applications for three projects and obtained six clinical trial application (CTA) approvals. As of the end of Q1 2023, the company had completed a total of 175 IND applications and obtained CTA approvals for 150 projects.-Fineline Info & Tech
