FAST NEWS: WuXi AppTec Sees Profit Doubling in First Three Quarters

The latest: Pharmaceutical services outsourcing company WuXi AppTec Co. Ltd. (2359.HK; 603259.SH) on Thursday estimated its revenue in the first three quarters of this year rose 71.87% to 28.4 billion yuan ($3.99 billion) year-on-year, with its net profit up 107.1% to 7.38 billion yuan.

Looking up: The company is confident of achieving its full-year revenue growth target of 68% to 72% this year, benefiting from full use of its global capacity at multiple locations and comprehensive coverage across industry supply chains, further demonstrating its economies of scale.

Take Note: The company estimated fair value changes and gains from its investment portfolio at approximately 397 million yuan in the first three quarters, a 78.7% decrease from 1.87 billion yuan in the same period last year, affecting its non-recurring profit.

Digging Deeper: Founded in December 2000, WuXi AppTec is a Chinese pharmaceutical outsourcing services provider covering the entire industry chain from drug discovery to commercialization. The company’s business has grown rapidly on big demand from both foreign and domestic drug developers for outsourced R&D and manufacturing services for their activity in the fast-growing China market, as well as global innovative drug companies keen to explore Covid-19 drugs. A profit in the third quarter would represent the company’s 10th consecutive quarter of revenue growth.

Market Reaction: WuXi AppTec shares rose in early trading on Thursday and closed up 4.3% at HK$63.95 at the midday break. But the shares still trade close to their 52 weeks low.

Translation by Jony Ho

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