WuXi AppTec leadership downplayed concerns about reduced demand for production of its glucagon-like peptide-1 receptor agonist (GLP-1RA) after leading obesity company Eli Lilly and Company issued a lower-than-expected revenue forecast.
On January 15, at the 43rd J.P. Morgan Healthcare Conference, WuXi AppTec co-CEO Chen Minzhang told attendees that if global demand for GLP-1 drugs is low, WuXi AppTec’s supply will be Long term use. As a result, Chen said he doesn't think it will have "any impact on the company's earnings at this time."
Chen added that China's GLP-1 R&D market landscape is consistent with WuXi AppTec's growth plans. According to GlobalData, the GLP-1R market experienced substantial growth in 2023, with sales reaching $37.2 billion.
Leading GLP-1 drug developer Eli Lilly's sales forecast is $400 million lower than expected, CEO Dave Ricks announced at JPMorgan on January 14. Ricks attributed this to unexpected market dynamics in the GLP-1 market in the fourth quarter of 2024. Last year, the company faced significant business disruption due to a shortage of tirzepatide, the active ingredient in Mounjaro and Zepbound, as demand outstripped supply and compounding pharmacies stepped in to produce alternatives. Eli Lilly also faces competition from Novo Nordisk and emerging players in obesity.
Chen said that despite being a busy year for geopolitical events, the external impact on WuXi AppTec in 2024 will be "very limited." The Biosafety Act, which would limit U.S. funding to Chinese biotech suppliers, has not been passed. A WuXi AppTec representative assured the audience that “going forward, we will continue to communicate and in some way make legislators aware of the value we create.”
Chen said at the meeting that WuXi AppTec plans to continue to expand its small molecule Phase III and commercial pipeline capabilities in 2025 and beyond. Six of the 31 new small molecules approved by the FDA in 2024 are produced by this company. From the first quarter to the third quarter of 2024, WuXi AppTec also added 20 new phase III and commercial new drugs. From 2022 to the third quarter of 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 2024 revenue to reach 38.3-40.5 yuan ($5.2-5.5 billion), which means excluding COVID-19 Revenue from -19 commercial revenue items will grow by 2.7-8.6%.
In addition to small molecules, the company will continue to focus its production capabilities on oligonucleotide and peptide CRDMO services. In addition, WuXi AppTec also plans to use new technologies such as automation and intelligence to improve efficiency.
"JPM 2025: WuXi AppTec refutes concerns about declining GLP-1 demand after Eli Lilly's low-income forecast" was originally created and published by Pharmaceutical Technology, a brand of GlobalData.
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