WuXi AppTec Posts Double-Digit Profit Growth, Raises 2025 Guidance
WuXi AppTec reported robust Q1–Q3 2025 results, with adjusted non‑IFRS net profit rising 43.4% year‑over‑year to RMB10.54 billion and backlog for continuing operations jumping 41.2% to a record RMB59.9 billion. The strength across revenue, margins and cash flow driven by its CRDMO model has prompted management to lift full‑year guidance, sharpening revenue visibility for investors and the global biopharma supply chain.
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WuXi AppTec strengthened its market position in the first nine months of 2025, delivering a sharp uptick in profit and a sizable expansion of its project backlog that together underpin a more bullish full‑year outlook. Adjusted non‑IFRS net profit attributable to owners reached RMB10.54 billion in Q1–Q3, up 43.4% from a year earlier, while backlog for continuing operations climbed 41.2% year‑over‑year to a record RMB59.9 billion.
Management said the gains reflect resilient client demand for outsourced development and manufacturing as pharmaceutical and biotech companies prioritize efficiency and speed to clinic. "Reflecting robust customer demand and the strength of our unique CRDMO business model, WuXi AppTec delivered strong double‑digit growth in revenue, profit and operating cash flow in the first three quarters of 2025, while our backlog for Continuing Operations reached a record RMB59.9 billion," Chairman and CEO Dr. Ge Li said.
The company’s testing arm contributed materially to results: WuXi Testing recorded RMB4.17 billion in revenue for Q1–Q3, and the group’s adjusted non‑IFRS gross profit margin for that period stood at 26.5%. Laboratory testing services posted encouraging sequential momentum in the third quarter, with Q3 revenue of RMB1.08 billion, up 7.2% year‑over‑year and 7.5% quarter‑over‑quarter, while adjusted non‑IFRS gross margin continued to improve quarter‑on‑quarter.
Taken together, those figures point to both top‑line growth and margin recovery across segments that had been pressured in prior periods. A backlog near RMB60 billion gives WuXi several quarters of revenue visibility and reduces short‑term execution risk, a factor that likely informed management’s decision to raise its full‑year 2025 guidance. For investors, a rising backlog is a leading indicator of contracted volumes converting into future revenue and cash flow, improving predictability in an otherwise volatile biotech funding environment.
The results also illuminate broader industry dynamics. Outsourcing demand remains strong as drug developers pursue productivity gains and risk sharing with contract research, development and manufacturing organizations. WuXi’s integrated CRDMO model — combining discovery, development, testing and manufacturing services — positions the company to capture larger shares of customer spend as programs scale. That vertical breadth can translate into cross‑sell opportunities and higher lifetime customer value, but it also requires continued investment in capacity and operational execution.
Risks remain. Macroeconomic uncertainty, potential shifts in R&D spending, and competitive pressures in lab testing and manufacturing could compress margins or slow backlog conversion. Policymakers’ emphasis on domestic biotech resilience and innovation in China, however, is likely to sustain demand for outsourced services over the medium term.
For now, WuXi’s figures signal a pivotal inflection: stronger profitability and a swelling pipeline of contracted work that together bolster the firm’s near‑term prospects and underline the structural shift toward outsourced biopharma services globally.
