WuXi Biologics (Cayman) Inc. (“WuXi Biologics” or “the Group”, stock code: 2269.HK), a leading global Contract Research, Development, and Manufacturing Organization (CRDMO) providing comprehensive solutions for biologics discovery, development, and manufacturing, has announced its unaudited interim results for the first half of 2024 (“Reporting Period”).
Financial Highlights
- Revenue: The Group’s revenue for the Reporting Period remained stable compared to the first half of 2023, totaling RMB 8,574.2 million, reflecting a slight year-on-year (YoY) increase of 1.0%. Excluding COVID-related sales from the previous year, non-COVID revenue grew by 7.7%, with non-COVID late-phase and commercial manufacturing revenue up by 11.7% YoY. Key factors driving this growth include successful implementation of the Group’s “Follow and Win the Molecule” strategy, expansion into new service areas such as antibody-drug conjugates (ADCs) and bispecific & multi-specifics, strong growth in pre-IND revenue, and increased capacity utilization in Europe and the U.S.
- Gross Profit and Margin: IFRS gross profit was RMB 3,350.0 million, compared to RMB 3,560.6 million in the same period last year. Adjusted gross profit was RMB 3,811.2 million versus RMB 3,993.1 million previously. The IFRS gross profit margin was 39.1%, with an adjusted margin of 44.4%. The decrease in gross profit margin is attributed to the impact of significant Discovery Services deals from 1H 2023, slightly lower capacity utilization in China, and ongoing costs related to new manufacturing facilities in Ireland, Germany, and the U.S., partially offset by efficiencies from continuous improvement initiatives.
- EBITDA and Margin: EBITDA was RMB 2,805.9 million, down from RMB 3,230.6 million in the previous year. Adjusted EBITDA was RMB 3,570.4 million compared to RMB 3,818.3 million last year. The EBITDA margin stood at 32.7%, with an adjusted margin of 41.6%.
- Net Profit: IFRS net profit was RMB 1,780.3 million, and net profit attributable to owners of the Company was RMB 1,499.1 million, representing declines of 23.9% and 33.9% YoY, respectively. This decline is due to increased selling, marketing, and administrative expenses, higher costs related to WuXi XDC Cayman Inc., and an unrealized foreign exchange loss from the Euro depreciation against the RMB.
- Adjusted Net Profit: Adjusted net profit was RMB 2,544.8 million, down 13.0% YoY from a record-high base in 1H 2023.
- Basic Earnings Per Share (EPS): Basic EPS and adjusted basic EPS were RMB 0.37 and RMB 0.55, respectively.
Business Highlights
In a challenging geopolitical environment, the Group added 61 new integrated projects in 1H 2024, a significant increase from 46 new projects in 1H 2023. This addition is one of the best six-month periods for new project additions to date. Among these, 52 were pre-IND projects, 5 were early-phase, 3 were late-phase, and 1 was for commercial manufacturing. The increase in pre-IND projects suggests early signs of a biotech funding recovery. The Group continued its “Win-the-Molecule” strategy, securing 9 post-IND projects, including 4 in late-phase and commercial manufacturing stages. Since 2018, the Group has won 78 projects under this initiative, focusing on quality, speed, and advanced technology platforms.
The number of late-phase projects has risen to 56, and commercial manufacturing projects total 16, after removing 8 COVID and 1 non-COVID dormant projects. The Group’s portfolio now includes 742 integrated projects, featuring complex biologics such as bispecifics & multispecifics (123), ADCs (167), fusion proteins (76), and vaccines (23). Notably, WuXiBodyTM and SDArBodyTM, the Group’s proprietary platforms, account for nearly half of the bispecifics & multispecifics projects, gaining global recognition.
As of June 30, 2024, the total backlog reached US$20.1 billion, matching the level from the first half of last year. This includes US$13.0 billion in service backlog and US$7.1 billion in potential milestone backlog. The backlog within 3 years exceeds US$3.6 billion, providing strong visibility for near-term revenue opportunities.
