WuXi AppTec (HKG: 2359), a China-based Contract Research Organization (CRO), has released its financial results for 2023, reporting an annual operating revenue of RMB 40.34 billion (USD 5.6 billion), representing a year-on-year (YOY) increase of 2.5%. When excluding COVID-19-related commercial projects, sales experienced a substantial growth of 25.6%. The net profit attributable to the parent company reached RMB 9.61 billion (USD 1.33 billion), reflecting a 9.0% YOY rise, while operating cash flow surged by 23.6% to RMB 7.12 billion (USD 989 million).
The company has recorded continuous growth in business volume and customer orders, with its WuXi Chemistry division increasing by 1.1% to RMB 29.17 billion in 2023. Excluding COVID-19 projects, this division showcased a remarkable growth rate of 36.1%. Other divisions performed as follows: WuXi Testing reported RMB 6.54 billion (+14.4%), WuXi Biology generated RMB 2.55 billion (+3.1%), and WuXi ATU (high-end CTDMO) achieved RMB 1.31 billion (+0.1%). However, revenue from domestic new drug research and development services fell to RMB 730 million, a decrease of 25.1% YOY.
In terms of client engagement, WuXi AppTec added over 1,200 new customers in 2023, serving more than 6,000 active customers throughout the past year. Demand from overseas clients remained robust, with revenues from existing clients reaching RMB 39.63 billion (+30%) and new customer revenues totaling RMB 710 million. By year-end 2023, the company’s orders in hand, excluding COVID-19 projects, increased by 18% YOY. Revenue from the world’s top 20 pharmaceutical companies grew impressively at a rate of 44% YOY to RMB 16.11 billion, while revenues from other global clients rose by 18% YOY to RMB 24.23 billion.
Regionally, American clients remained the primary source of income, contributing RMB 26.13 billion, marking a 42% YOY increase and accounting for approximately 65% of revenue by Global Business Insights calculations. Revenue from European clients reached RMB 4.7 billion, a 12% increase, whereas revenues from Chinese clients were RMB 7.37 billion, up 1%. Clients from other regions brought in RMB 2.14 billion, representing an 8% growth.
In light of recent US sanctions, WuXi AppTec has expressed concerns about its classification under the proposed US Biosafety Act, which labels it as a “biotech company of concern.” The annual report emphasized the potential impact of this legislation on its ability to engage with customers tied to the US government. Despite external challenges, the company remains optimistic, projecting revenues for 2024 to reach between RMB 38.3 billion and RMB 40.5 billion.- Flcube.com
