WuXi Bio (HKG: 2269), a leading Contract Research, Development, and Manufacturing Organization (CRDMO) based in China, has released its financial report for 2023, showing a year-on-year (YOY) increase of 11.6% in revenues to RMB 17,034.3 billion (USD 2.35 billion). The company’s net profits reached RMB 3.57 billion (USD 495 million), marking a decrease of 21.5% YOY.
While the performance is considered robust, WuXi Bio’s revenue growth has decelerated significantly from the over 48% YOY growth achieved in 2022. The loss of COVID-19 related business was a mitigating factor; however, non-COVID business saw an impressive increase of 37.7% YOY. The company added a total of 132 new integrated projects during the year, bringing the total to 698, with 51 in late-phase and 24 in commercial manufacturing. WuXi Bio’s antibody drug conjugate (ADC) and bispecific antibody (BsAb) platforms contributed to growth, with key deals including a partnership with GSK in January 2023 for the development of bi- and multi-specific TCE antibodies, valued up to USD 1.5 billion, and an antibody discovery partnership with BioNTech announced in January 2024.
WuXi Bio also spun off WuXi XDC Cayman Inc., an independent CRDMO focused on ADC and bioconjugate drugs, which listed on the Hong Kong Stock Exchange in November 2023 (stock code: 2268.HK). The company expanded its global footprint by opening a Boston Research Service Center in the US, marking its third research service center globally and the first in the US to offer discovery services.
However, the Biosecurity Act, tabled by a bipartisan group of US politicians earlier this year, identified WuXi Bio among several Chinese life sciences firms as potential national security threats, proposing to bar them from receiving any US federal funding. WuXi Bio CEO Chris Chen acknowledged the potential impact of this legislation in his annual statement, emphasizing the company’s commitment to finding certainty and stability through strategic initiatives. Despite these challenges, sales in Europe and the US achieved a 53% YOY growth during the year.- Flcube.com
