WuXi Biologics, one of China’s largest contract drug developers, posted a 4.3 per cent increase in profit attributable to shareholders in the first half of the year, as stronger demand and improved capacity utilisation lifted revenue and margins.
The Wuxi, Jiangsu-based company’s net profit attributable to shareholders rose to 2.44 billion yuan (US$363 million) in the six months ended June, according to its filing to the Hong Kong stock exchange on Tuesday. Revenue increased 18.4 per cent to 11.79 billion yuan, the filing showed.
Adjusted net profit attributable to shareholders, which strips out foreign-exchange movements and other non-core items, jumped 38.4 per cent to 3.31 billion yuan. The company recorded a foreign-exchange loss of 585.1 million yuan during the period, compared with a 1.5 million yuan gain a year earlier.
Gross profit jumped 28.1 per cent to 5.45 billion yuan, while gross margin expanded to 46.2 per cent from 42.7 per cent. The company said the improvement was driven by operating leverage, higher capacity utilisation and productivity gains.
Its shares also jumped 7.4 per cent on Tuesday to close at HK$52.20 (US$6.65), ahead of the earnings release.
The results came as WuXi Biologics continued to expand its pipeline despite geopolitical uncertainty surrounding Chinese biotechnology companies. It added 169 integrated projects during the period, taking the total to 1,064. Late-phase projects increased to 78, while commercial manufacturing projects reached 28, the earnings showed.
The company said it also secured 16 external projects through its “follow and win the molecule” strategy, including four late-phase projects and one commercial manufacturing project.
WuXi Biologics noted that its research business would be “a significant growth driver in the future”, while manufacturing would remain a major pillar as the company invests in next-generation technologies and expands its global production network.
Meanwhile, North America remained its largest market, generating 6.9 billion yuan, or 58.4 per cent of total revenue, up from 6 billion yuan a year earlier. The company said growth was supported by demand for new drug-development programmes and projects progressing into late-stage and commercial manufacturing. -- SOUTH CHINA MORNING POST
