WuXi Biologics Reports Solid 2024 Interim Results

Core Viewpoint - WuXi Biologics reported a modest revenue increase of 1.0% YoY, with significant growth in non-COVID related revenue, indicating resilience and strategic execution in a challenging macroeconomic environment [1][2][4]. Financial Highlights - Revenue for the first half of 2024 was RMB 8,574.2 million, reflecting a 1.0% increase YoY [2][5]. - Non-COVID revenue grew by 7.7% YoY, with late-phase and commercial manufacturing revenue increasing by 11.7% [2][6]. - Gross profit was RMB 3,350.0 million, with a gross profit margin of 39.1%, down from 41.9% in the previous year [5][6]. - EBITDA was RMB 2,805.9 million, with an EBITDA margin of 32.7%, compared to 38.0% in 1H 2023 [6]. - Net profit attributable to owners of the company was RMB 1,499.1 million, representing a YoY decline of 33.9% [5][6]. Business Highlights - The company added 61 new integrated projects in 1H 2024, a significant increase from 46 in the same period last year, indicating strong client engagement [2][3]. - Total integrated projects reached 742, one of the largest portfolios of complex biologics, including various advanced therapeutic platforms [3][7]. - The backlog remained stable at US$20.1 billion, providing visibility for future revenue opportunities [3][4]. Technology and Innovation - WuXi Biologics utilizes advanced proprietary technology platforms, including WuXiBody™, TCE platform, and WuXiUP™, which have been recognized for their effectiveness in drug development [3][4]. - The company has achieved a 100% success rate in passing pre-approval inspections from EMA and FDA, underscoring its commitment to quality [3][4]. Management and Strategy - The management team emphasizes the importance of a unified quality system and a strong talent pool, with over 4,200 scientists contributing to the company's success [4][8]. - The company is committed to enhancing its R&D and manufacturing efficiencies while expanding its global presence [4][8]. ESG Commitment - WuXi Biologics integrates Environmental, Social, and Governance (ESG) responsibilities into its business strategy, aiming to be a leader in sustainability within the CRDMO sector [8].