Key Takeaways:
WuXi AppTec’s first-quarter adjusted non-IFRS net profit surged 71.7% to ¥4.60 billion, as the global contract research and manufacturing giant converted a robust order book into significantly improved core profitability.
The results reflect "a substantial improvement in the profitability of our main business," the company said in a statement released by Chairman Li Ge on April 27, 2026.
The company’s performance for the first quarter of 2026 shows broad-based growth, with a notable surge in its core chemistry unit.
Shares of WuXi AppTec (2359.HK) will be in focus as the strong earnings beat and a 23.6% year-over-year increase in the order backlog to ¥59.77 billion signal accelerating demand for its integrated CRDMO services.
The main engine for the quarter was the chemistry business, which posted revenue of ¥10.62 billion, a 43.7% increase from the prior year. The small molecule process R&D and production (D&M) segment was the standout performer, with revenue jumping 80.1% to ¥6.93 billion. This growth is supported by a strong pipeline, which includes 89 commercialized projects and 94 projects in Phase III clinical trials.
The TIDES business, which covers oligonucleotides and peptides, saw revenue grow 6.1% to ¥2.38 billion. The company noted that the number of D&M service clients for TIDES increased by 28% and the number of molecules served grew by 59%, anticipating full-year revenue growth of around 40% for the unit. To meet this demand, WuXi AppTec announced plans to accelerate the construction of its new base in Changzhou.
Other business segments also delivered solid results. The testing business revenue increased by 27.4% to ¥1.13 billion, with drug safety evaluation services growing at 34.8%. The biology business reported a 10.1% revenue increase to ¥6.7 billion, contributing over 20% of the company's new clients through its role in the CRDMO funnel.
The strong top-line performance translated directly to improved profitability. The adjusted non-IFRS gross margin expanded by 8.5 percentage points to 50.4% from 41.9% a year earlier. The chemistry segment’s gross margin improved to 52.8%, while the testing business saw a significant margin jump to 35.5% from 24.8%.
The significant margin expansion and robust order book signal that WuXi AppTec is effectively leveraging its scale to meet strong global demand. Investors will be watching the company's upcoming shareholder meeting for further details on the new Changzhou facility and its capacity expansion plans.
This article is for informational purposes only and does not constitute investment advice.
