Media reports indicate that WuXi Advanced Therapies (WuXi ATU), the gene and cell therapy-focused Contract Testing, Development, and Manufacturing Organization (CTDMO) unit of Wuxi Apptec (SHA: 603259, HKG: 2359), has closed its commercial-scale manufacturing facilities in Lingang, Shanghai. This decision was made in light of changing external market conditions, as stated by Wuxi Apptec.
Adjustments to Production Lines and Future Plans
The majority of the production line at the Lingang plant has ceased operations. However, the plant is not entirely shut down. Local staff have revealed that process development manufacturing will continue at the site, while commercial production will be transferred to the firm’s base in Wuxi. The Lingang facility, which became operational in October 2021, was WuXi ATU’s fourth manufacturing base globally.
Financial Performance and Operational Efficiency
Wuxi Apptec reported a revenue of RMB 1.308 billion (USD 190 million) for its cell and gene therapy sector, marking a 27.44% year-on-year (YOY) increase. Despite this growth, the company has experienced expanding losses, with a gross profit margin of -6.68%. The Chinese CRO attributed this to the low utilization rate of the Lingang facilities. On March 28, Wuxi Apptec commented, “We believe that this business adjustment will better help the company optimize operational efficiency.”-Fineline Info & Tech
