WuXi AppTec Continues to Attract New Clients Amid BIOSECURE Act Uncertainty

Resilience Amid Threats:
WuXi AppTec has added 800 new customers in the first nine months of 2024, despite the looming threat of the BIOSECURE Act, which aims to restrict U.S. companies from working with Chinese biotech firms.

Revenue Performance:
The company reported a 2% year-over-year revenue decline in the third quarter, with total revenue reaching $1.46 billion. However, excluding COVID-19 impacts, WuXi AppTec highlighted a 14.6% year-over-year growth in Q3.

Client Retention:
WuXi AppTec has retained its existing active customer base of over 6,000 companies, with most new contracts being early- or mid-stage projects. Only 20 commercial or Phase III assets were secured in the first three quarters of 2024.

Legislative Pressure:
The BIOSECURE Act, which explicitly names WuXi AppTec and other Chinese biotech companies, has been passed by the U.S. House of Representatives and is awaiting Senate consideration. The bill aims to keep U.S. taxpayer dollars away from biotech companies of national concern.

Industry Impact:
The proposed legislation could disrupt the supply chain of many drugs, both commercially available and in clinical trials, as nearly 50 U.S.-based companies currently have contracts with Chinese firms.