WuXi AppTec dismisses concern over lower demand for GLP-1 after Lilly’s low revenue forecast

Management at WuXi AppTec downplayed concerns about reduced demand for its glucagon-like peptide-1 receptor agonist (GLP-1RA) maker after major obesity player Eli Lilly released projections of revenues lower than expected.

On January 15 at the 43rd JP Morgan Healthcare Conference, WuXi AppTec Co-CEO Minzhang Chen told the audience that if the global demand for GLP-1 drugs is lower, then WuXi’s supply will be used for a good piece So, Chen said 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 expected growth, Chen added. According to GlobalData, the GLP-1R market will experience massive growth in 2023, generating $37.2 billion in sales.

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

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

Chen told the conference that WuXi Apptec plans to continue expanding Phase III small molecule and commercial pipeline capabilities through 2025 and beyond. Six of 31 new small molecules approved by the FDA in 2024 were produced by the company. WuXi Apptec also added 20 Phase III and new commercial drugs between Q1 and Q3 2024. Between 2022 and Q3 2024, the company’s phase III small molecule and commercial drug projects increased from 107 to 147, increasing 37% . Although a full 2024 annual report and 2025 annual guidance will not be released until March 2025, the company expects revenue to reach RMB 38.3-40.5 billion ($5.2-5.5 billion) in 2024, reporting a growth of 2.7-8.6% excluding the commercial COVID-19. projects.

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

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