#China #Shanghai #Financial Performance #revenue growth #WuXi AppTec

WuXi AppTec's 2024 Financial Highlights

WuXi AppTec, a leading global contract research organization, recently announced substantial financial achievements for the year ending December 31, 2024. The company reported a revenue of RMB 39.241 billion, marking a 5.2% increase compared to the previous year, excluding its COVID-19 commercial project in 2023. The fourth quarter alone saw revenues soar to RMB 11.539 billion, signifying a year-over-year growth of 6.9%. This performance has not only met but exceeded the financial guidance set earlier in the year.

Detailed Revenue Breakdown

The impressive financial results were driven by a variety of factors. Notably, the adjusted non-IFRS net profit attributable to the owners of the company reached RMB 10.583 billion, adhering to a non-IFRS net profit margin that peaked at a record high of 27.0%. The diluted earnings per share (EPS) also reflected this growth, with figures of RMB 3.26 cited for the year.

Furthermore, WuXi AppTec highlighted a robust free cash flow generation of RMB 7.98 billion, showcasing its operational efficiency and financial health. By the end of 2024, the company was servicing approximately 6,000 active customers, including 500 new clients added through continuing operations during the year.

Growth Drivers

A significant contributor to this growth has been WuXi's unique integrated Contract Research, Development and Manufacturing Organization (CRDMO) model. This approach has allowed the company to effectively respond to increasing demands for small molecule drugs, with the development pipeline indicating a growing interest, having added 1,187 new molecules in 2024, culminating in a total of 3,377 molecules as of December 31, 2024.

WuXi's business segments reported varied performances, with the chemistry division seeing a remarkable revenue increase. The small molecule development and manufacturing services recorded revenues of RMB 17.87 billion, representing 6.4% growth. Excitement surrounds the substantial progress in peptide and oligonucleotide (TIDES) sectors, where revenue surged by 70.1% year-over-year.

Operational Expansion

In terms of operational capabilities, WuXi AppTec is leveraging new facilities to enhance its production capacity. The recent commencement of operations at its Taixing API manufacturing site, alongside increased volumes at its Changzhou facility, is paving the way for further growth potential. By the end of 2025, the reactor volume for small molecule APIs is expected to exceed 4,000kL.

Moreover, international expansion efforts are steadfast, with a commitment to doubling production capabilities at its site in Couvet, Switzerland, and developing new sites in the U.S. and Singapore. These strategic expansions illustrate the company’s proactive approach in meeting global demands and enhancing its footprint in the pharmaceutical industry.

Commitment to Sustainability

WuXi AppTec has also made strides in sustainability, receiving multiple accolades for its environmental and operational practices. For the fourth consecutive year, it obtained an