First, the development of the enterprise
WuXi AppTec is an integrated pharmaceutical development service provider that empowers global pharmaceutical, life sciences and medical device companies to advance the development and manufacturing of new drugs to bring breakthrough therapies to patients. The company's main business covers CRO, chemical drug CDMO, high-end treatment CTDMO and other fields. The company's "all-in-one, end-to-end" service model enables continuous growth by providing continuity of services from the drug discovery stage to the development of customer programs and drug molecules. The company has operating bases in Asia, Europe, North America and other regions, and through its unique "CRDMO" and "CTDMO" business models, it aims to reduce R&D costs, improve R&D efficiency, and bring innovative treatment options to patients. The services cover chemical drug R&D and production, biological research, preclinical testing, clinical trial R&D, precision medicine R&D, testing and production.
Data source: public information collation
In 2023, WuXi AppTec was named to the S&P Global Sustainability Yearbook 2023 and won the "Best Improved Company in the Industry" award, and was named the "Highest Rated ESG (Environmental, Social and Governance) Industry" and "Highest Rated ESG Region (Asia-Pacific)" by Sustainalytics, an internationally renowned rating agency. It has been highly recognized by Sustainalytics and ranks in the top 2% of global pharmaceutical peers.
Data source: public information collation
Second, the main products of the enterprise
WuXi AppTec's main business is pharmaceutical R&D outsourcing CRO and manufacturing outsourcing CDMO, which are designed to improve customer efficiency and reduce customer costs, with CRO business accounting for about 60% and CDMO business accounting for about 40% (the proportion is rising). The CRO business is the upstream of the CDMO business, and WuXi AppTec started with the CRO business and can attract customers to its CDMO business.
According to the industry classification, WuXi AppTec's main business can be divided into chemical business, testing business, biology business, high-end therapeutic CTDMO business, domestic new drug R&D service department, and other businesses.
Source: Company annual report
The company's main customers are the world's largest pharmaceutical companies, such as Pfizer, Johnson & Johnson, Merck, GlaxoSmithKline, Roche, etc.
Third, the operation of the enterprise
WuXi AppTec's operating income in 2023 will be 40.341 billion yuan, a year-on-year increase of 2.51%; The operating cost in 2023 will be 28.709 billion, a year-on-year decrease of 3.7%. On the whole, WuXi AppTec's operating income has shown a stepwise growth, and the overall trend of operating costs is increasing, but the company's profitability has improved significantly compared with the growth rate of operating income.
Source: Company annual report
Source: Company annual report
WuXi AppTec's largest business is the chemical business, with a revenue of RMB 29.1 billion in 2023, accounting for 72.38% of revenue, followed by the testing business, with an operating income of RMB 6.5 billion in 2023, accounting for 16.23% of revenue.
Unlike most CRO companies in China, WuXi AppTec's main customers come from overseas, with more than 70% of the company's revenue coming from overseas markets, of which revenue from the US market reached RMB 26.13 billion, a year-on-year increase of 42%, and the US market accounted for more than 60% of the company's total revenue.
Pharmaceutical giants Pfizer, Johnson & Johnson, Roche, Eli Lilly, and Merck are the top five customers of WuXi AppTec. The sales of the top five customers were 12.269 billion yuan, accounting for 30.41% of revenue. From 2019 to 2023, the sales of the top five customers showed an overall growth trend, increasing from 2.554 billion yuan to 12.269 billion yuan.
In 2023, WuXi AppTec added more than 1,200 new customers and served more than 6,000 active customers in the past 12 months. During the Reporting Period, 98% of WuXi AppTec's revenue came from existing customers, amounting to RMB39.63 billion, a year-on-year increase of 30% after excluding specific commercial manufacturing projects. The revenue from new customers was RMB710 million, which not only brought additional revenue to the company, but also provided a broader opportunity for WuXi AppTec to continue to follow new technologies and new molecules. WuXi AppTec continues to implement the "long tail" strategy and continuously increase the share of big pharma. During the Reporting Period, revenue from the world's top 20 pharmaceutical companies continued to grow at a rapid rate of RMB16.11 billion, a year-on-year increase of 44% after excluding specific commercial manufacturing projects. The above data is a good reflection of WuXi AppTec's business capabilities, which has a large and strong customer base, long-term service capabilities and strong customer stickiness.
Fourth, the advantages of enterprise development
1. The world's leading "integrated, end-to-end" new drug R&D service platform
WuXi AppTec is one of the very few open-ended new drug R&D service platforms in the industry that has service capabilities across the entire drug development value chain. WuXi AppTec's "integrated, end-to-end" drug R&D service platform can meet the diversified needs of customers in terms of technical depth and breadth of services. The company gives full play to the advantages of global layout and the layout of the whole industry chain, and helps customers continue to promote the research and development process of new drugs through global linkage in a timely manner, which has been widely recognized by customers.
2. Give full play to the industry's leading advantages, continue to track cutting-edge science and technology, and empower innovation
WuXi AppTec is committed to applying the latest science and technology to empower pharmaceutical R&D and innovation, helping customers turn new drugs from concept to reality. The company's service capabilities and scale are in a leading position in the industry, which helps the company to better predict the future technological development and emerging R&D trends of the industry, and seize new development opportunities. By exploring various cutting-edge technologies that can be applied to the new drug R&D process, the company helps customers improve R&D efficiency and reduce the threshold for new drug R&D to the greatest extent. With an in-depth understanding of industry trends and emerging technologies, WuXi AppTec can help clients interpret and research the latest scientific discoveries and translate them into viable business outcomes.
3. Based on the in-depth understanding of the industry and the in-depth excavation of customer needs, improve the empowerment platform by strengthening the construction of capabilities and scale
After more than 20 years of rapid development, WuXi AppTec has accumulated rich industry experience. WuXi AppTec has established in-depth relationships with leading global pharmaceutical companies, continuously arisen into the latest industry trends and accumulated experience in meeting customer needs, and enhanced its business service capabilities through continuous capacity and scale building, as well as strategic mergers and acquisitions, to provide customers with better and more comprehensive services. In 2023, WuXi AppTec completed the capacity expansion project of its Changzhou and Taixing sites. The new capacity has been put into use in January 2024, and the volume of the peptide solid-phase synthesis reactor has been increased to 32,000L. In January 2024, part of the new Taixing API production base was officially put into operation, enabling continuous business growth.
4. Large, loyal and expanding customer base to build an ecosystem in the field of medicine and health
WuXi AppTec has a large, diverse and loyal customer base covering all of the world's top 20 pharmaceutical companies. During the reporting period, the world's top 20 pharmaceutical companies accounted for about 40% of the company's overall revenue. With the continuous enhancement of the number and type of services of the company's empowerment platform, the number of new and old customers of the company has grown steadily. WuXi AppTec's enabling platform helps lower the barrier to entry for new drug development, improve R&D efficiency, help partners succeed, and attract more participants to join the new drug development industry. In this process, WuXi AppTec continues to drive the development of new knowledge and technologies, improve R&D efficiency, reduce R&D costs, and continuously enhance the ability of platform innovation and empowerment, forming a virtuous cycle ecosystem.
Fifth, the layout of enterprise investment
Headquartered in Shanghai, China, WuXi AppTec has established 26 locations and 560,000 square meters of R&D and manufacturing facilities around the world. In addition to San Diego, WuXi AppTec's U.S. operations include Cambridge, Massachusetts, Plains, New Jersey, Philadelphia and Lansdale, Pennsylvania, St. Paul, Minnesota, and Atlanta. WuXi AppTec also operates in Germany, Iceland, Israel, South Korea, Singapore and Japan.
WuXi AppTec is a leading global provider of R&D and manufacturing services to the global pharmaceutical and healthcare industries. On July 19, 2022, WuXi AppTec announced plans to build a 202342-square-meter R&D and manufacturing facility in Singapore, with a total of seven facilities. The company plans to invest more than S$2 billion (US$1.43 billion) to build and operate the base, which aims to further empower global partners to advance healthcare innovation. Based on the company's business needs, the investment is expected to be made in phases over the next 10 years. In June 2021, WuXi STA announced that it would build a new pharmaceutical manufacturing facility in Middleton, Delaware, USA. The 768903-square-meter site in Middletown houses analytical laboratories, formulation research and development, and production and packaging facilities for oral solid dosage and sterile products, and is expected to begin production in 2025.
Sixth, the status of the enterprise industry
WuXi AppTec is the world's leading integrated open enablement platform, providing comprehensive and integrated new drug development and manufacturing services for global biopharmaceutical companies. Through the unique "CRDMO" and "CTDMO" business models, we have developed and successfully proved the efficiency of the integrated and end-to-end business model, lowering the threshold for R&D and helping customers improve R&D efficiency. The company is the absolute leader in the field of CRO &CDMO in China, and ranks among the top in the world.
WuXi AppTec is an important player in the global pharmaceutical innovation chain, especially in China's CXO industry, with a market share of about 10% in the global pharmaceutical CRO market, and has grown into a very important part of the global pharmaceutical industry chain. At present, WuXi AppTec's enablement platform provides R&D and innovation projects to more than 5,850 partners in more than 30 countries around the world, and its business scope covers the entire industry chain of chemical drug R&D and manufacturing, biological research, preclinical testing and clinical trial R&D, cell and gene therapy R&D, testing and manufacturing.