WuXi AppTec dismissed concerns of lower GLP-1 demand after Lilly’s lower revenue forecast.
WuXi AppTec’s management played down concerns of lower demand for glucagon-like peptide-1 receptor agonist (GLP-1RA) production after major obesity player Eli Lilly issued lower-than-expected revenue forecasts.
WuXi AppTec Co-CEO Minzhang Chen told the audience at the 43rd JP Morgan Healthcare Conference on January 15 that if global demand for GLP-1 drugs remains low, WuXi’s supply will be used for a long time. So Chen said he doesn’t think it will have “any impact for now” on the company’s bottom line.
The GLP-1 market situation for research and development in China is consistent with WuXi’s planned growth, Chen added. According to GlobalData, the GLP-1R market is expected to grow significantly by 2023, generating sales of $37.2 billion.
GLP-1 drugmaker Eli Lilly’s sales forecast was $400 million lower than expected, CEO Dave Ricks announced on Jan. 14 at JP Morgan. Ricks The reason for this is unpredictable market volatility. in the GLP-1 market in Q4 2024. The company faced significant disruption last year due to shortages of tirzepatide in Monjaro and Zepbonden, as demand outstripped supply and pharmacies stepped in to produce alternatives. Lille faces competition from Novo Nordisk and emerging players in the obesity space.
Despite a busy year for geopolitical events, the external impact on WuXi in 2024 was “very limited,” Chen said. The Biosecurity Act, which would limit US funding to Chinese biotechnology suppliers, has yet to be passed. “As we move forward, we will continue to communicate and educate legislators about the value we will somehow create,” a WuXi representative told the audience.
Chen told the conference that WuXi Apptec plans to expand small molecule Phase III and commercial pipeline capabilities through 2025 and beyond. In the year Of the 31 total new small molecules approved by the FDA by 2024, six were developed by the company. WuXi Apptec also added 20 Phase III and commercial new drugs between Q1 and Q3 2024. Between 2022 and Q3 2024, the company’s small molecule phase III and commercial drug projects increased from 107 to 147, an increase of 37%. Although the full 2024 annual report and 2025 annual guidance will not be released until March 2025, the company expects its revenue to reach RMB 38.3-40.5 billion ($5.2-5.5 billion) in 2024, representing growth of 2.7-8.6 percent excluding the Covid-19 business. . Projects.
In addition to small molecules, the company will continue to focus on oligonucleotide and peptide CRDMO services. WuXi also plans to incorporate new technologies to improve efficiency, such as automation and intelligence.
