Di Yi Cai Jing·2025-03-18 03:30Core Viewpoint - WuXi AppTec's stock price surged following the announcement of its revenue growth forecast for 2024, driven by the expansion of the obesity drug market and the implications of U.S. tariff policies [2][4]. Group 1: Revenue Growth and Business Expansion - WuXi AppTec expects its overall revenue to reach between 41.5 billion to 43 billion yuan in 2024, surpassing the revenue peak driven by COVID-19 commercialization in 2023 [2]. - The TIDES (oligonucleotide and peptide) business has become a new revenue growth engine, with projected revenue of 5.8 billion yuan in 2024, representing a year-on-year increase of 70.1% [2]. - By the end of 2024, TIDES' order backlog is expected to grow by 103.9% year-on-year [2]. Group 2: Market Demand and Production Capacity - The TIDES business is involved in the contract manufacturing of GLP-1 drugs, which have seen significant success in the obesity treatment sector, attracting investments from major pharmaceutical companies [3]. - WuXi AppTec holds over 20 GLP-1 projects, capturing more than 20% of the market share, indicating strong future demand for production capacity [3]. - The company is expanding its production capacity, with the total volume of peptide solid-phase synthesis reactors expected to increase to 41,000 liters by the end of 2024 and over 100,000 liters by the end of 2025 [2]. Group 3: U.S. Market and Policy Implications - The U.S. market is the largest revenue source for WuXi AppTec, contributing 25.02 billion yuan, which accounts for approximately 64% of the company's total revenue [4]. - The management acknowledged the uncertainty surrounding U.S. tariff policies and stated that the specific impact on the company's business remains unclear and will require further observation [4]. - Regarding the U.S. Biologics Act, the management noted that there have been no recent proposals related to this legislation and that the company will continue to monitor legislative developments closely [4].