WuXi AppTec’s Q1 performance decreased by 10.42%, and the company once again responded to the impact of the US bill draft

Excluding COVID-19’s commercialization projects, Wumingkangde’s revenue in the first quarter fell 1.8% year on year.

On the evening of April 29th, WuXi AppTec (603259. SH) announced its first quarter results, with operating income and net profit attributable to shareholders of the listed company both decreasing by about 10%.

Specifically, in the first quarter of this year, WuXi AppTec achieved a revenue of 7.982 billion yuan, a year-on-year decrease of 10.95%; The net profit attributable to shareholders of the listed company was 1.942 billion yuan, a year-on-year decrease of 10.42%.

Excluding COVID-19’s commercialization projects, Wumingkangde’s revenue in the first quarter fell 1.8% year on year. During the reporting period, the revenue from the world’s top 20 pharmaceutical enterprises reached 2.7 billion yuan, an increase of 4.2% year on year after excluding COVID-19’s commercial projects.

Among the revenue sources of WuXi AppTec, the business with the highest proportion is the chemical business. In the first quarter of this year, the revenue decreased by 13.53% year on year. Excluding the commercial projects of COVID-19, the revenue decreased by 0.6% year on year.

WuXi AppTec’s chemical business also includes TIDES business (mainly oligonucleotides and peptides). Currently, weight loss drugs represented by GLP-1 are becoming popular worldwide, which has led to an increase in demand for peptide drugs in the market and also brought orders to upstream foundries. In the first quarter of this year, the TIDES business revenue of WuXi AppTec reached 780 million yuan, a year-on-year increase of 43.1%. Last year’s annual report showed that the revenue from this business also increased by over 40%. As of the end of the first quarter of 2024, TIDES had a significant year-on-year increase of 110% in orders on hand.

Previously, when the company released its annual report last year, it had predicted that this year’s revenue would reach 38.3 billion to 40.5 billion yuan. This revenue may slightly decrease compared to last year’s revenue of 40.341 billion yuan. In this first quarter report, the company’s annual performance forecast remains unchanged.

Since the beginning of this year, there have been significant challenges for WuXi AppTec

However, as of now, the draft plan is still pending.

In the first quarter of this year, WuXi AppTec added over 300 new customers and served over 6000 active customers in the past 12 months.

Li Ge, Chairman and CEO of WuXi AppTec, also stated that with the rapid iteration of artificial intelligence and continuous innovation in technology, the industry’s demand for CRO, CDMO, CRDMO, and CTDMO services will continue to grow, which is an inevitable trend in industry development. Although the recent proposed bill by the US Congress may create short-term uncertainty for companies, customers, and the global pharmaceutical and life sciences industry, companies will always adhere to the core values of “doing the right thing, doing the right thing”, serving customers well, and helping more new and good drugs emerge.

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