WuXi AppTec Posts Record Q1 Revenue on Strong Order Backlog
Quick Look
- WuXi AppTec reported record Q1 revenue of 12.44 billion yuan (US$1.72 billion), up 28.81% year-on-year, beating market expectations of 10.78 billion yuan.
- Net profit rose nearly 27% to 4.65 billion yuan, exceeding forecasts of 3.9 billion yuan.
- The pharmaceutical contract manufacturer has a record order backlog of 59.77 billion yuan, up 23.6% from a year earlier.
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Why It Matters
WuXi AppTec is a Shanghai- and Hong Kong-listed pharmaceutical contract manufacturer that provides drug discovery and manufacturing services to global pharmaceutical companies. The company has reported over 12 billion yuan in revenue for three consecutive quarters.
China's drug maker WuXi AppTec reported record first-quarter revenue, as a robust order backlog and sustained demand from global pharmaceutical companies supported growth. For the three months ended March 31, the Shanghai- and Hong Kong-listed company posted revenue of 12.44 billion yuan (US$1.72 billion), up 28.81 per cent year on year, according to a filing released on Monday. Net profit climbed nearly 27 per cent to 4.65 billion yuan in the quarter. Both revenue and net profit exceeded market expectations of 10.78 billion yuan and 3.9 billion yuan, respectively. The results marked the third consecutive quarter in which WuXi AppTec's revenue remained above the 12 billion yuan mark. Growth was underpinned by a strong order backlog, which stood at 59.77 billion yuan at the end of March, up 23.6 per cent from a year earlier. The performance puts the company on track to meet its full-year revenue guidance of 51.3 billion yuan to 53 billion yuan.
Open Questions
- What specific therapeutic areas drove the growth?
- How much of the order backlog is from new vs existing customers?
- What is the impact of US-China tensions on the company's business outlook?
