China’s WuXi AppTec reports record revenue in Q4, barely mentions BIOSECURE Act
WuXi AppTec announced that in the fourth quarter of 2024 both revenue and profit reached record highs, with revenue up 6.9% year-over-year. Last year’s overall revenue increased 5.2%, excluding a COVID-19 commercial project in 2023.
The China-based company anticipates that continuing operations revenue will return to double-digit growth of 10% to 15% year-over-year in 2025, with a focus on its core contract research, development and manufacturing organization (CRDMO) business.
“Our CRDMO business model enables the company to generate distinct industry insights and respond promptly to new molecule demands from customers, ensuring the company’s long-term business growth and sustainable returns to shareholders,” WuXi AppTec CEO Ge Li said in a statement.
WuXi AppTec’s global capacity expansion continued in 2024 with an investment in its Couvet, Switzerland site, which doubled the company’s oral dose manufacturing capacity last year. The company is building a formulation development and manufacturing site in Middletown, Delaware, which is expected to start operations by the end of 2026, and in May 2024 broke ground to construct an R&D and manufacturing site in Singapore — with the Phase I portion slated to commence operations in 2027.
While WuXi AppTec touted the ongoing Delaware construction in its Q4 and 2024 financial results, it made no mention of increasing U.S.-China geopolitical tensions and how that has recently impacted its business.
WuXi AppTec is among five Chinese contract manufacturers targeted by the BIOSECURE Act, which seeks to prevent U.S. federal funds from supporting certain China-based biotech “companies of concern.” Although the legislation was overwhelmingly passed by the House of Representatives in September 2024, it failed to be included in a defense bill at the end of last year leaving its fate in limbo.
“To date there is no proposal in the 119th Congress to re-initiate the legislative process for such bill, but we have been closely monitoring the legislative movements,” WuXi AppTec said in its 2024 annual report released on Monday.
WuXi AppTec has repeatedly said it disagrees with being labeled in the BIOSECURE Act as a company of concern “without due process” and that the CRDMO complies with the laws and regulations in all countries where it operates.
Last year, WuXi AppTec acknowledged that the proposed U.S. legislation may create “short-term uncertainty” for the company, while emphasizing that it remains steadfast in “doing the right thing and doing it right” as it enhances its CRDMO capabilities. Li in the company’s Q4 and 2024 financial results on Monday repeated the same “doing the right thing and doing it right” phrase.
In late December 2024, WuXi AppTec entered into an agreement to sell the U.S. and U.K. based operations of WuXi Advanced Therapies, its cell and gene therapy unit, to New York-headquartered healthcare investment firm Altaris. WuXi AppTec also signed an agreement to sell its U.S. medical device testing operations at the end of 2024 to “sharpen” the company’s focus on CRDMO services. Both transactions have been completed.