China-based Contract Research, Development, and Manufacturing Organization (CRDMO) WuXi Biologics (HKEX: 2269) published its unaudited interim financial report for the six months ending on June 30, 2022. Revenues increased by 63.5% during the period to RMB7.21 billion (USD1 billion).
Growth Drivers
The company’s growth drivers include the successful implementation of its “Follow and win molecules” strategy, increasing client volume, continued commercial manufacturing and late-stage business momentum, effective execution of existing and new in-licensed programs, and empowering global clients against the COVID-19 disruptions. Its leading technology platform, industry-best project delivery time, and excellent project execution track record mean significantly increased non-COVID-19 programs profits and market shares. The scope of services provided to the biopharmaceutical industry has expanded, including one-stop integrated formulation service. The company has made full use of existing production capacity and resources, and implemented operational efficiency improvement projects, coupled with business continuity plans in Shanghai being successfully implemented.
Market Revenues
During the period, the North American market revenues reached RMB3.9 billion (USD574 million), accounting for 54.1% of the total and up 78% year-on-year (YOY). Chinese market revenues were RMB1.8 billion (USD264.9 million), accounting for 24.9%, up 54.4% YOY. European market revenues were RMB1.3 billion (USD247.6 million), accounting for 18% and up 31% YOY. Revenue from other markets in the world amounted to RMB221 million (USD32.5 million), accounting for 3%, up 232.7% YOY, mainly including Singapore, Japan, South Korea, Israel, and Australia.
CRDMO Business Growth
The company’s CRDMO business remained on an upward growth trajectory during the period. Through the implementation of its “follow and win molecules” strategy, its product pipeline consisted of 259 monoclonal antibodies (mAbs), 84 bispecific antibodies (BsAbs), 76 antibody drug conjugates (ADCs), 68 fusion proteins, 16 vaccines, and 31 other proteins. The number of comprehensive programs totaled 534, up 30.9% YOY, including 287 preclinical projects (+35.4%), 204 early clinical projects (+27.5%), including 144 Phase I projects and 60 Phase II projects, 43 clinical Phase III projects, and commercial production projects (+19.4%, including Phase III projects). During the period, 32 programs entered into early clinical development from the pre-clinical stage.
Clientele and Production Capacity
For the six months ending June 30, 2022, WuXi Bio ramped up its clientele, partnering with all the top 20 global pharmaceutical companies and 43 of the top 50 Chinese pharmaceutical companies. At the same time, it has not lost any clients or projects due to the COVID-19 outbreak in Shanghai, further demonstrating its resilience in dealing with external challenges. WuXi Bio continues to ratchet up its global production capacity, from 42,000 liters in 2016 to 262,000 liters in 2022. In the next 10 years, the group will shell out USD1.4 billion to build a leading integrated CRDMO service center in Singapore. This will expand the capacity and scale of biopharmaceutical discovery, development, and large-scale production of bulk solutions and preparations, and will add 120,000 liters to its biologic manufacturing capacities in 2026.-Fineline Info & Tech
