Despite External Challenges, WuXi AppTec Revenue and Profit Continued to Grow QoQ in the First Three Quarters of 2024; the Third Quarter Revenue Back to RMB 10+ Billion, Up 14.6% YoY Excluding COVID-19 Commercial Projects; Backlog Up 35.2% YoY
PR Newswire
SHANGHAI, Oct. 28, 2024
-- Revenue Reached RMB10,461 Million in the Third Quarter, Excluding
COVID-19 Commercial Projects, Up 14.6% Year-over-Year
-- Revenue Reached RMB27,702 Million for the First Three Quarters, Excluding
COVID-19 Commercial Projects, Up 4.6% Year-over-Year
-- Net Profit Attributable to the Owners of the Company Reached RMB6,533
Million, and Diluted Earnings per Share (EPS) of RMB2.24 for the First
Three Quarters
-- Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company
Reached RMB7,346 Million, and Adjusted Non-IFRS Diluted EPS of RMB2.52[1]
for the First Three Quarters
-- Operating Cash Flow Up 10.4% Year-over-Year for the Three Quarters
Excluding COVID-19 commercial projects; Free Cash Flow Achieved RMB5.56
Billion
SHANGHAI, Oct. 28, 2024 /PRNewswire/ -- WuXi AppTec (stock code: 603259.SH / 2359.HK), a global company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical and life sciences industry, today announced its financial results for the first three quarters ending September 30, 2024 ("Reporting Period"):
-- For the first three quarters of 2024, revenue reached RMB27,702 million,
excluding COVID-19 commercial projects, revenue grew 4.6% year-over-year.
-- Adjusted non-IFRS gross profit reached RMB11,341 million. Adjusted
non-IFRS gross profit margin was 40.9%.
-- Net profit attributable to the owners of the Company was RMB6,533
million; diluted EPS was RMB2.24. Adjusted non-IFRS net profit
attributable to the owners of the Company was RMB7,346 million; adjusted
diluted non-IFRS EPS was RMB2.52.
-- Operating cash flow growth continued to outpace revenue growth; operating
cash flow up 10.4% year-over-year for the first three quarters of 2024
excluding COVID-19 commercial projects; free cash flow achieved RMB5.56
billion.
-- Demand from customers across regions continued to grow. In the first
three quarters of 2024, we added over 800 new customers while maintaining
the existing base of over 6,000 active customers.
-- As of September 30, 2024, backlog achieved RMB43.82 billion, growing
35.2% year-over-year.
-- In the first three quarters of 2024, revenue from the top 20 global
pharmaceutical companies reached RMB11.22 billion, growing 23.1%
year-over-year excluding COVID-19 commercial projects.
-- The sustained and steady business growth is attributed to our unique
fully integrated Contract Research, Development and Manufacturing
Organization (CRDMO) platform. WuXi Chemistry's small molecule D&M
pipeline has maintained rapid growth, with a total of 915 new molecules
added in the first three quarters. As of September 30, 2024, our small
molecule D&M pipeline reached 3,356 molecules, among which 20 commercial
and phase III projects were added in the first three quarters.
-- In January 2024, the total reactor volume of Solid Phase Peptide
Synthesizer increased to 32,000L, and is expected to reach 41,000L by end
of 2024; it will continue to increase in 2025.
-- In May 2024, we announced the groundbreaking of the new R&D and
manufacturing site in Singapore; Phase I is expected to commence
operation in 2027.
[1] In the first three quarters of 2023 and 2024, WuXi AppTec had a
fully-diluted weighted average share count of 2,949,888,986 and 2,906,724,914
ordinary shares, respectively.
Management Comment
Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "Despite external challenges, we delivered a steady quarter-over-quarter increase in revenue and profit as expected for the first three quarters of 2024. The third quarter revenue returned to over RMB10 billion, growing 14.6% year-over-year excluding COVID-19 commercial projects. Meanwhile, our backlog reached RMB43.8 billion, growing 35.2% year-over-year."
"WuXi AppTec remains committed to providing exceptional service to our customers and helping patients worldwide. We firmly believe that the Company's unique integrated CRDMO business model can effectively serve customers' evolving needs while fostering the Company's ability to closely follow scientific innovations, generate industry insights, capture new molecule opportunities, and continuously drive long-term business growth. In 2024, the Company expects to achieve revenue of RMB 38.3-40.5 billion and free cash flow of RMB 6-7 billion, and maintain adjusted non-IFRS NPM at a similar level as last year. Although the recently proposed U.S. legislation may create short-term uncertainty for the global pharmaceutical and life sciences industry, WuXi AppTec remains steadfast in 'doing the right thing and doing it right', and will continuously enhance our capabilities and capacity as we support our customers' efforts to bring groundbreaking therapies to patients around the world. Together, we can realize our vision that 'every drug can be made and every disease can be treated'."
Business Performance by Segments
-- WuXi Chemistry: CRDMO Business Model Drives Continuous Growth; Q3 2024
Revenue Achieved Positive YoY Growth, and Up 26.4% YoY Excluding COVID-19
Commercial Projects
-- Despite external challenges, WuXi Chemistry Q3 revenue grew 1.4%
year-over-year to RMB7.88 billion; excluding COVID-19 commercial
projects, revenue increased 26.4% year-over-year. Q1-Q3 revenue
reached RMB20.09billion, growing 10.4% year-over-year excluding
COVID-19 commercial projects. Q1-Q3 adjusted non-IFRS gross profit
margin was 45.5%. Full-year gross profit margin is expected to
keep flat as last year.
-- Small molecule drug discovery services ("R") continues to generate
downstream opportunities. In the past 12 months, we successfully
synthesized and delivered more than 450,000 new compounds to
customers, which resulted in 7% year-over-year growth. Through our
"follow-the-customer" and "follow-the-molecule" strategies, we
established trusted partnerships with our customers globally,
supporting the sustainable growth of our CRDMO business. The
number of molecules converted from R to D&M continued to grow.
-- Small molecule development and manufacturing (D&M) services
remains strong.i. Q1-Q3 revenue of small molecule D&M services
reached RMB12.47 billion, up 7.0% year-over-year excluding
COVID-19 commercial projects. ii. The small molecule CDMO pipeline
continued to expand. In the first three quarters, 915 new
molecules were added to the small molecule D&M pipeline. As of
September 30, 2024, our small molecule D&M pipeline reached 3,356
molecules, including 68 commercial projects, 79 in phase III, 357
in phase II and 2,852 in phase I and pre-clinical stages, among
which 20 commercial and phase III projects were added in the first
three quarters.iii. In May 2024, we announced the groundbreaking
of the new R&D and manufacturing site in Singapore; Phase I is
expected to commence operation in 2027.
-- Specifically, TIDES business (mainly oligo and peptides) sustains
rapid growth.i. Q1-Q3 revenue of TIDES grew strongly by 71.0%
year-over-year to RMB3.55 billion. TIDES full-year revenue is
expected to grow over 60%. As of September, 30, 2024, TIDES
backlog grew 196% year-over-year.ii. TIDES D&M customers grew 20%
year-over-year, and the number of TIDES molecules grew 22%
year-over-year.iii. In January 2024, the total reactor volume of
solid phase peptide synthesizers increased to 32,000L, and is
expected to reach 41,000L by end of 2024; it will continue to
increase in 2025.
-- WuXi Testing: Drug Safety Evaluation Service & Site Management
Organization (SMO) Maintain Leading Positions
-- Q1-Q3 revenue of WuXi Testing reached RMB4.62 billion. Adjusted
non-IFRS gross profit margin was 34.6%.
-- Q1-Q3 revenue of lab testing services was down 7.9% year-over-year
to RMB3.26 billion, with Q3 revenue up 5.5% quarter-over-quarter.
Among which, Q1-Q3 revenue from drug safety evaluation services
was down 10.1% year-over-year due to market impact as pricing
gradually reflected in revenue along with backlog conversion,
while Q3 revenue up 10.1% quarter-over-quarter, maintaining an
industry leading position in the Asia-Pacific region.
-- In the first three quarters, the Qidong and Chengdu facilities
received the National Medical Products Administration (NMPA) and
Organization for Economic Co-operation and Development (OECD) GLP
qualifications. The Suzhou facility was reviewed for the first
time by the Japan Pharmaceuticals and Medical Devices Agency
(PMDA) for on-site audit and successfully passed.
-- New modality business continued to develop, while new vaccine
capability continued to improve, and market share of nucleic acids,
conjugates, and mRNA further expanded.
-- The Company is committed to actively enabling customers going
global, and supported 70%+ China biotech companies with successful
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