WuXi Biologics Continues Strong Business Momentum for Sustainable High Growth in 2022
Recap from the Fourth Investor Day
On June 16th, WuXi Biologics successfully held its fourth Investor Day online event, with the theme of “A Global CRDMO that Enables Partners Worldwide.” The event, designed to facilitate good interaction and communication between the company and investors, saw more than 800 investors attending, as the WuXi Biologics senior management team gave presentations on biologics discovery, development and manufacturing; the quality system; vaccines; bioconjugates; global engineering; and environmental, social and governance (ESG) initiatives.
Since the beginning of this year, the biologics industry has been faced with a number of challenges, such as the biotech funding slowdown, the ever-changing COVID-19 pandemic situation, and weak economic growth. With its foundation of excellent execution, however, WuXi Biologics has maintained strong momentum and, by enabling its global partners, has continued to accelerate the development and manufacture of innovative biologics, benefiting patients worldwide.
Business performance remains strong with increasing projects
Despite the challenges of UVL and a Shanghai lockdown in the first quarter of 2022, WuXi Biologics’ business performance remains strong, with increasing numbers of new projects. As of April 30, a total of 47 integrated projects had been added – more than in the same period in previous years. Of these, 65% came from European and US markets. WuXi Biologics’ total backlog has grown to over $17 billion and the company has received royalty income of $3 million for the first time. Even though the number of projects keeps increasing, WuXi Biologics is still able to initiate projects for clients within four weeks because of its strong capabilities and flexible capacity.
WuXi Biologics’ “Follow and Win the Molecule” strategy continues to bring excellent results, with CMO projects increasing. Two contracts totaling over $100 million were signed recently and more than 10 late-phase projects are currently under negotiation. Our vaccines and bioconjugates businesses are thriving, winning new clients and projects. WuXi Vaccines is working with 14 clients on 35 projects, including attenuated virus vaccines, adenovirus vector vaccines, virus-like particles (VLP) vaccines, recombinant protein vaccines and mRNA vaccines. WuXi XDC is now supporting 75 integrated projects and has enabled 26 IND applications. Its first CMO project is expected to be launched this year.
The company’s excellent execution and integrated technology platform were demonstrated by two acquisitions completed in 2021 – the former Pfizer Hangzhou biologics manufacturing site and a former CDMO company, CMAB, which is now WuXi Biologics Suzhou. Both have been completely integrated into WuXi Biologics’ systems, with fully upgraded capacity and capabilities. In just one year, revenue and project numbers at WuXi Biologics Suzhou have increased by more than 200% and 300% respectively, and its international customer base has expanded. Today 50% of its customers are from China and 50% from Europe and the U.S., compared with 85% from China for the former CMAB.
In addition, WuXi Biologics’ global manufacturing capacity plan is also advancing as scheduled. The MFG18 facility located in Cranbury, New Jersey, U.S., as well as the MFG6 and the MFG7 facilities located in Dundalk, Ireland, are expected to be GMP released within the year. Partial capacity has already been booked by a number of clients.
End-to-end drug product services generate new growth
Based on its world-leading drug substance capability and capacity, WuXi Biologics has further improved its end-to-end integrated drug product (DP) services. The services include not only product process development, manufacturing and packaging, but also critical clinical in-use compatibility; shipping and extractables/leachables studies; drug container compatibility, functionality, assembly, secondary packaging and human factor studies for combination products.
Since 2018, WuXi Biologics’ DP business has maintained rapid growth, covering hundreds of biologics products, including monoclonal antibodies (mAbs), bispecific antibodies (bsAbs), fusion proteins, antibody conjugation drugs (ADC), enzymes and other modalities. The team has accumulated rich experience from multiple successful projects of various types. With integrated high-throughput and automated equipment, as well as advanced technology, WuXi Biologics has completed process development for more than 50 high-concentration (100-200 mg/mL) protein projects. The record of DP technology transfer success is 100%.
By the end of this year, WuXi Biologics is expected to operate 11 GMP DP facilities in China, the United States and Germany, with an annual capacity of more than 100 million doses (vial/pre-filled syringes). DP services will become a new growth engine for the company’s business and further enable the company to consolidate its global leading position in the biologics CRDMO industry.
Outstanding execution during Shanghai lockdown recognized by clients
As soon as the Shanghai lockdown was announced, WuXi Biologics immediately launched its “Business Continuity Plan.” More than 600 employees voluntarily stayed in the Shanghai sites to ensure the progress of projects. As a result, key projects have been delivered with a 100% success rate. Currently, almost all employees in Shanghai are back to working on site, with business back to normal. WuXi Bioneers again demonstrated their outstanding execution and resilience, receiving appreciation and recognition from multiple global partners, and helping the company achieve its anticipated targets in 2022.
With a strategy of diversified supply chain and safe inventory, WuXi Biologics has effectively secured 852 import and export orders (391 and 461 respectively) even during the lockdown period, hence 260 projects for 179 clients underway with ongoing progress. In recent years, WuXi Biologics’ sustainable supply chain has been strengthened by two major tactics: suppliers are from multiple regions – including the United States, Europe and China – and all key materials are provided by two or more suppliers, each with inventory of six to nine months. These preventive measures help guarantee that the company can avoid disruption by regional contingencies and ensure normal project delivery.
Sustainable development with ESG as the cornerstone
As a world-leading Contract Research, Development and Manufacturing Organization (CRDMO), WuXi Biologics is sustainability oriented and views Environmental, Social, and Governance (ESG) responsibilities as a cornerstone of its global business development, rooted in the company’s mission and vision.
WuXi Biologics’ ESG strategy has been expanded and defined as “enhancing governance, enabling clients, giving back to society and greening business”. To better implement the strategy, the company has set clear goals for key ESG issues, used transparency and open communication to share those goals inside and outside the company, and aligned ESG work with each employee’s KPI.
To actively address climate change, WuXi Biologics has set mid- to long-term greenhouse gas (GHG) emissions reduction and water consumption targets: reduce its ratio of Scope 1 and Scope 2 GHG emissions intensity by 50% by 2030 compared with 2020, and deliver an 18% reduction in water consumption intensity by 2025 from a 2019 base year. Even with the company’s capacity tripled in 2021, WuXi Biologics effectively achieved expected progress in accordance with its proposed medium and long-term environmental goals.
“Facility of the Future,” as a model of WuXi Biologics’ sustainability concept, is making a significant contribution to the company’s mid- to long-term environmental goals. Such facilities have been built on our sites in Dundalk, Ireland and Hebei, China and are about to be operational. Their construction employed a series of environmentally friendly designs, setting a benchmark for energy conservation, emission reduction, resource recycling and green development in the industry.
An example of WuXi Biologics’ governance initiatives is the upgrade of its sustainable supply chain system, with an emphasis on business ethics and compliance, labor rights and occupational health, as well as environmental protection and climate change. The company ensures suppliers’ ESG commitment as a prerequisite for acceptance, outlines requirements for suppliers’ corporate social responsibility, and creates a “win-win” ecosystem. In terms of social responsibility, WuXi Biologics continues to improve regarding compliance, talent development, and caring for employees. For example, the WiSTEM (Women in Science, Technology, Engineering and Mathematics) Committee has been established to promote career opportunities for female employees and inspire them with role models. WuXi Biologics also sponsors frequent volunteer activities at its sites around the world as a way to give back to society, and also to endow employees with a sense of achievement and belonging during the company’s rapid growth.
About WuXi Biologics
WuXi Biologics (stock code: 2269.HK) is a global Contract Research, Development and Manufacturing Organization (CRDMO) offering end-to-end solutions that empower partners to discover, develop, and manufacture biologics – from concept to commercialization – for the benefit of patients worldwide.
With over 10,000 skilled employees in China, the United States, Ireland, Germany, and Singapore, WuXi Biologics leverages its technologies and expertise to provide customers with efficient and cost-effective biologics discovery, development, and manufacturing solutions. As of April 30, 2022, WuXi Biologics is supporting over 526 integrated client projects, including nine in commercial manufacturing.
WuXi Biologics views Environmental, Social, and Governance (ESG) responsibilities as an integral component of our ethos and business strategy, and we aim to become an ESG leader in the biologics CRDMO sector. Our facilities use next-generation biomanufacturing technologies and clean energy sources. We have also established an ESG committee led by our CEO to steer the comprehensive ESG strategy and its implementation, further enhancing our commitment to sustainability. For more information about WuXi Biologics, please visit: www.wuxibiologics.com.