China-based WuXi AppTec Co., Ltd (SHA: 603259, HKG: 2359) has released its Q3 2022 financial report, showcasing remarkable growth across key metrics. For the first nine months of 2022, the Contract Research Organization (CRO) reported revenues of RMB 28.395 billion (USD 3.9 billion), a 71.9% year-on-year (YOY) increase, and net profits of RMB 7.378 billion (USD 1 billion), up 107.1% YOY. In Q3 alone, revenues surged 77.9% to RMB 10.638 billion (USD 1.47 billion), while net profits skyrocketed 209.11% to RMB 2.742 billion (USD 378 million).
Strong Performance Across Business Segments
The chemical business led the charge, generating RMB 7.843 billion (USD 1 billion) in revenue, a 114.8% YOY increase. The detection business contributed RMB 1.572 billion (USD 217 million), up 28.1% YOY, while the biological business grew 36.6% to RMB 689 million (USD 95.2 million). The CTDMO business for cell and gene therapy also saw growth, with revenues rising 8.4% to RMB 306 million (USD 42.3 million). However, the domestic new drug R&D service sector experienced a 27.9% decline, attributed to strategic upgrades to meet evolving customer demands.
Expanding Client Base and Global Reach
WuXi AppTec added over 1,000 clients in the first three quarters, bringing its total active client base to more than 5,900. Revenue from the world’s top 20 pharmaceutical companies soared 175% YOY to RMB 12.918 billion (USD 1.78 billion), while revenue from other global customers grew 31% to RMB 15.477 billion (USD 2.13 billion). The company also announced the cancellation of its secondary offering on the Hong Kong Stock Exchange, citing strong cash flow and large-scale commercial manufacturing orders.
Innovation and Future Prospects
WuXi AppTec is advancing 15 new molecule category pre-clinical programs, including peptides/peptide conjugated drugs (PDC), protein degraders, and oligonucleotides. Multiple programs are expected to file Investigational New Drug (IND) applications by late 2022 or early 2023, positioning the company for sustained growth in the global pharmaceutical and biotech sectors.-Fineline Info & Tech
