WuXi AppTec grew rapidly in 2021, and the cell and gene segment will drive its long-term development
CXO giant WuXi AppTec (Chinese:药明康德) released the 2021 annual report on March 23 . Its operating revenue was CNY22.902 billion, increasing 38.5% year-on-year; the parent company’s net profit grew to CNY5.097 billion by 72.2% from the year earlier.
From 2011 to 2015, WuXi AppTec’s revenue grew at a CAGR of 17%; from 2015 to 2018, the CAGR was 25%; and the CAGR further increased to 34% from 2018 to 2021. WuXi AppTec expects revenue growth to accelerate in 2022.
The unique CRDMO (Contract Research Development Manufacture Organization) and CTDMO (Contract Testing Development Manufacture Organization) businesses contribute to the company's development, says Li Ge, Chairman and CEO of WuXi AppTec.
He added that in 2021, WuXi AppTec adjusted the organizational structure and integrated five new business segments to provide customers with better services.
Of all the subsidiaries, WuXi Chemistry's revenue was CNY14.087 billion in 2021, with a year-on-year increase of 46.9%. It continued to build the CRDMO business to grow orders and revenue. It is expected that WuXi Chemistry will double its revenue growth rate in 2022 compared to 2021.
The revenue of WuXi Testing was CNY4.525 billion in 2021, increasing 38.0% compared to 2020. WuXi Biology achieved revenue of CNY1.985 billion in 2021, rising 30.0% from the year earlier. It is expected that the revenue of these two segments will grow rapidly in 2022.
However, the revenue of cell and gene therapy CTDMO department WuXi ATU fell 2.8% year on year to about CNY1.026 billion. Its revenue in China grew by about 87% year-on-year.
Meanwhile, the US business was impacted by the delayed submission of some customers’ listing applications and COVID-19. According to WuXi AppTec, 2022 will be a turning point for WuXi ATU, and the overall revenue growth will reach a 15-year high.
WuXi DDSU, the domestic new drug research and development service department, achieved revenue of CNY1.251 billion, with a 17.5% year-on-year increase. In 2022, this segment will be upgraded to meet customers' higher requirements.