WuXi AppTec sells UK-US units, but annual results show foreign contracts continue despite China tensions
From Yahoo Finance: 2025-03-25 10:29:00
WuXi AppTec sold off two US/UK businesses in February and March, as revealed in its annual results on 18 March 2025. The divestitures included the cell therapy business and US medical device testing operations, with Altaris acquiring the cell therapy CDMO. This move aims to ensure uninterrupted services for clients and patients.
The divestitures come amidst increased tensions between China and the US, with the Biosecure Act potentially impacting federal funding to pharma companies outsourcing to WuXi AppTec. The company’s ATU cell and gene subsidiary had already felt the effects of the proposed legislation, impacting new business wins.
Despite geopolitical challenges, WuXi AppTec reported strong financial performance in 2024. Its Q4 revenue reached 11.5bn yuan ($1.6bn), up 6.9% YoY, with annual revenue reaching 39.2bn yuan, up 5.2% YoY. The company remains focused on core CRDMO business areas for future growth.
The company’s annual results also highlighted its diverse customer base and revenue sources. With 6,000 customers in 2024, including 1,000 new ones, WuXi AppTec generated significant revenue from top global pharmaceutical companies. Revenue from its Chemistry, Testing, and Biology segments continues to drive growth.
WuXi AppTec’s commitment to innovation and expansion is evident through its strategic investments in manufacturing sites worldwide. With new facilities in China, Switzerland, the US, and Singapore, the company aims to enhance its capabilities and support future growth. The emphasis on intellectual property protection underscores its commitment to ethical business practices.