WuXi AppTec’s leadership played down concerns about reduced demand for glucagon-like peptide-1 receptor agonist (GLP-1RA) manufacturing after leading obesity player Eli Lilly released lower-than-expected revenue projections.

On 15 January at the 43rd JP Morgan Healthcare Conference, WuXi AppTec Co-CEO Minzhang Chen told the audience that if global demand for GLP-1 drugs is lower, then WuXi’s supply would be used for a long time. Therefore, Chen stated that he didn’t think it would “have any impact for now” on the company’s bottom line.

The GLP-1 market landscape for research and development in China aligns with WuXi’s planned growth, Chen added. According to GlobalData, the GLP-1R market experienced massive growth in 2023, generating $37.2 billion in sales.

Leading GLP-1 drug developer Eli Lilly’s sales forecast was $400m lower than expected, CEO Dave Ricks announced on January 14 at JP Morgan. Ricks attributed this to unexpected market dynamics in Q4 2024 in the GLP-1 market. The company faced significant disruptions last year due to shortages of tirzepatide, the active ingredient in both Mounjaro and Zepbound, as demand outpaced supply, and compounding pharmacies stepped in to produce alternatives. Lilly also faces competition in the obesity space from Novo Nordisk and emerging players.

Biosecure Act

Despite being a busy year for geopolitical events, external impacts to WuXi in 2024 were “very limited”, Chen said. The Biosecure Act, which would limit US funding of Chinese biotechnology suppliers, has yet to pass. The WuXi representative assured the audience that “moving forward, we will continue to communicate and, in a way, educate lawmakers of the value we create”.

Small molecules and oligos

Chen told the conference that WuXi Apptec plans to continue expanding small molecule Phase III and commercial pipeline capabilities through 2025 and beyond. Six out of 31 total new small molecules approved by the FDA in 2024 were produced 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, rising 37%. Although a full 2024 annual report and annual guidance for 2025 will not be released until March 2025, the company expects revenue to reach RMB 38.3-40.5 ($5.2-5.5 billion) in 2024, signaling growth of 2.7-8.6% excluding COVID-19 commercial projects.

In addition to small molecules, the company will continue to focus capacity on oligonucleotide and peptide CRDMO services. Furthermore, WuXi plans to incorporate new technologies in improve efficiency such as automation and intelligence.