WuXi AppTec's growth rate in the first quarter of 2021 hits a record high

Wuxi Wuxi AppTec New Drug Development Co.
, Ltd.
, a company capable of providing comprehensive and integrated new drug R&D and production services and technology platform for the global biomedical industry, released the first quarter report of 2021
.

The company's financial data for the first quarter has not been audited
.

Financial highlights for the first quarter of 2021

• Operating income increased strongly year-on-year by 55.
  3% to 4.
  95 billion yuan
  .
  
  The strong business demand is due to the company's continued expansion of new customers and increasing customer penetration
  
  
  • The company continues to give full play to the advantages of a global R&D service platform, and firmly implements the strategy of empowering global customers to accelerate drug R&D
    .
    During the reporting period, the company had more than 360 new customers and more than 4,400 active customers
    .
    
    • The company continues to empower global pharmaceutical innovation
      .
      During the reporting period, the company's revenue from overseas customers was 3.
      622 billion yuan, a year-on-year increase of 49.
      5%; revenue from Chinese customers was 1.
      328 billion yuan, a year-on-year increase of 73.
      9%
      
    • The company continues to expand new customers and maintain a strong customer stickiness through high-quality and efficient services
      .
      During the reporting period, the company's revenue from original customers was 4.
      753 billion yuan, a year-on-year increase of 54.
      3%; revenue from new customers was 197 million yuan;
      
    • The company's "long-tail customer" strategy continues to develop, and the penetration rate of large pharmaceutical companies continues to increase
      .
      During the reporting period, revenue from the world's top 20 pharmaceutical companies was 1.
      584 billion yuan, a year-on-year increase of 66.
      6%; revenue from "long-tail customers" and other customers was 3.
      366 billion yuan, a year-on-year increase of 50.
      5%;
      
    • The company continues to strengthen customer conversion and further enhance the synergy of the integrated empowerment platform
      .
      During the reporting period, customers who used the services of the company's multiple business departments contributed revenue of 3.
      944 billion yuan, a year-on-year increase of 58.
      4%
      .
      
      
  • Laboratory services in China: With the expansion of customers and the continuous enhancement of service penetration, all business lines have achieved strong growth
    • Fee for Services revenue increased by more than 58% year-on-year, and many new projects were converted to our CDMO business to continue to serve customers
      .
      
    • Further optimize the allocation of resources, integrate DNA-encoded compound libraries, protein production, and protein structure-based drug discovery platforms to create a competitive integrated target-to-hit compound discovery platform, empower more than 600 global customers, and become the company's downstream An important "traffic portal" for the business sector
      .
      
    • The company provides Chinese customers with integrated pre-clinical R&D services including milestone share for future external authorization of products and sales revenue share after product launch
      .
      As of March 31, 2021, the company has assisted customers in completing IND declarations for 120 projects and obtained clinical trial approvals for 91 projects
      .
      At the same time, 2 projects are in phase III clinical trials
      .
      
    • Thanks to the surge in demand brought about by high-quality services and the expansion of the company's animal properties, revenue from the drug safety evaluation business/toxicology service increased by approximately 114% year-on-year
      .
      
    • Through the integrated service platform of WIND (WuXi IND), we provide customers with integrated services of new drug development and global declaration, and accelerate the development of new drugs for customers
      .
      During the reporting period, the company's WIND integrated service platform signed more than 40 service projects
      .
      
      
  • CDMO service revenue: the core business model and capacity release advantages are highlighted, and the growth has doubled
    • The number of small molecule drugs CDMO pipeline molecules increased by 169, including 11 projects transferred from customers themselves or other CDMO companies
      .
      During the reporting period, the company's small molecule CDMO service project involved more than 1,340 new drug molecule projects, of which 46 were in Phase III clinical phase and 28 were approved for listing
      .
      
      
    • During the reporting period, Hequan Pharmaceutical started construction of its production base in Taixing.
      After completion, it will be able to provide large-scale API, oligonucleotide and peptide API production services
      .
      The Taixing base is expected to have an area of ​​over 140,000 square meters in 2022
      .
      
      
    • The Wuxi new drug preparation development and production base started by Hequan Pharmaceuticals will be put into use in 2021, which will further improve the development and production capacity of solid preparations, and will increase the development of sterile preparations, clinical drug production and commercial production capacity
      .
      
    • The company's subsidiary Hequan Pharmaceuticals, located in Changzhou, has a large-scale oligonucleotide API production workshop, a high-activity API production workshop, and a large-scale peptide API production workshop successively put into use, which can better meet the growing needs of customers
      .
      
  • Laboratory services in the United States: without fear of the impact of the epidemic, firm long-term strategic goals, and continuously improve the technical capabilities of cell and gene therapy platforms through the acquisition and integration of British gene therapy technology company OXGENE
    • We provide CTDMO services for cell and gene therapy products to global customers.
      During the reporting period:
      • The company's US laboratory provides CTDMO services for 36 clinical phase cell and gene therapy projects, including 22 phase I clinical trials and 14 phase II/III clinical trials
        .
        
      • The current revenue challenge of the company's cell and gene therapy services is mainly due to the delay in the approval of the commercial phase of customer projects and the impact of the epidemic in the United States
        .
        In addition, key projects failed to pass late-stage clinical trials
        .
        The company is actively establishing a new product line, and by integrating the technical capabilities of OXGENE, greatly enhancing the capabilities of advanced viral vector platforms, with a view to achieving a rapid rebound when the epidemic eases in the second half of 2021
        .
        
    • Our medical device testing business has also continued to be affected by the epidemic
      .
      Major projects have slowed down in demand due to the delay in key steps affected by the epidemic
      .
      The company is actively expanding its business, especially under the influence of the changes in EU medical device regulations and the adoption of chemical characteristics, with a view to reversing the trend in the second half of 2021
      .
      
  • Clinical research and other CRO services: revenue rebounded strongly, and orders on hand were delivered on time
    • Continue to assist customers in conducting clinical research in China and the United States
      .
      During the reporting period:
      • Orders in hand have achieved rapid growth
        .
        As of March 31, 2021, clinical research services (CDS) orders on hand have increased by approximately 56% year-on-year, and clinical research on-site execution (SMO) orders have increased by approximately 47% year-on-year;
        
      • Clinical research business in China[3] rebounded strongly and grew by 64.
        7%, and clinical research services in the United States were still limited by the impact of the regional epidemic
        .
        
      • The company's CDS team provides clinical trial development services for a total of more than 130 projects in China and the United States
        .
        The company assisted customers in completing 3 new drug listing and registration clinical trials
        .
        
        
      • The company's SMO team maintains its leading position in China's industry.
        The team has more than 3,500 employees, distributed in 150 cities across the country, and provides services for about 1,000 hospitals
        .
        Provide clinical trial services for a number of innovative drugs, and help customers complete the verification and approval of 5 drugs and medical device products
        .