WuXi AppTec (SH603259) Cell and Gene Therapy CDMO Business Growth Analysis Report

I have now collected sufficient information to provide you with a detailed analysis report on the growth rate of WuXi AppTec’s cell and gene therapy CDMO business.

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WuXi AppTec’s Cell and Gene Therapy (CGT) CDMO business is primarily operated through its subsidiary

, focusing on CTDMO (Contract Research, Testing, and Manufacturing Organization) services for cell and gene therapies[1][2]. This business is a key component of WuXi AppTec’s integrated “CRDMO” strategy, dedicated to providing global customers with end-to-end services from drug discovery to commercial manufacturing.

WuXi AppTec’s CGT business platform is mainly distributed across three production bases, located in Philadelphia, USA (approximately 20,000 square meters), Wuxi, China (approximately 13,000 square meters), and Europe (through the acquisition of OXGENE)[1].

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According to WuXi AppTec’s 2024 Annual Report, the company achieved annual operating revenue of

, representing a year-over-year increase of 5.2% (after excluding 2023 COVID-19 commercialization projects)[3][4]. However, the CGT business (WuXi ATU) faced significant challenges in 2024:

Indicator	2024 Data	YoY Change
WuXi ATU H1 Revenue	RMB 575 million	-19.43%
WuXi ATU US/UK Operations (Jan-Nov)	RMB 980 million	2.4% of total revenue
Discontinued Operations Revenue	RMB 1.324 billion	-20.40%

: In H1 2024, WuXi ATU’s revenue decreased by 19.43% year-over-year, with a net loss of RMB 171 million, making it the among all WuXi AppTec’s business segments[2][5].

In its financial report, WuXi AppTec explained that the main reasons for the CGT business’s lower-than-expected revenue include[2][5]:

1. Commercial-stage projects are still in the early ramp-up phase
   : Slow commercialization progress leads to limited revenue contribution
2. Project delays or cancellations
   : Some projects were delayed or terminated due to client reasons
3. Insufficient new orders
   : Expansion of new clients was hindered by policy factors such as the U.S. Biosecurity Act

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As of H1 2024, WuXi AppTec’s CTDMO platform provided process development, testing, and manufacturing services for

[2]:

Project Phase	Quantity	Notes
Commercial-stage	2	In early ramp-up phase
Phase III Clinical	5	2 are in NDA preparation stage
Phase II Clinical	8	-
Preclinical/Phase I	49	-

While the number of projects remains stable, the slow progress of commercial-stage projects remains the main bottleneck restricting revenue growth.

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In December 2024, WuXi AppTec announced the sale of the

of its WuXi ATU business to U.S. healthcare investment fund Altaris, in an all-cash transaction[5][6]. The entities included are:

• Advanced Therapies
  (U.S.)
• Oxford Genetics
  (UK)

These two businesses achieved combined operating revenue of approximately

from January to November 2024, accounting for of WuXi AppTec’s annual audited operating revenue[5].

Concurrent with the sale of overseas assets, in February 2025, WuXi AppTec injected

in capital into Shanghai WuXi ATU, increasing its registered capital from RMB 100 million to RMB 600 million, representing a [1]. This “U-turn” move reflects the company’s strategic adjustment direction of .

Industry analysts believe that the reasons for WuXi AppTec’s strategic adjustment include[5][6]:

1. Addressing policy risks
   : Avoid potential regulatory risks brought by the U.S. Biosecurity Act
2. Focusing on core businesses
   : Concentrate resources on developing competitive CRDMO businesses
3. Optimizing resource allocation
   : Redirect capital and management resources to areas with greater growth potential

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According to research data from Zheshang Securities[1], the historical growth trajectory of WuXi AppTec’s CGT CDMO business is as follows:

Period	Compound Annual Growth Rate (CAGR)	Notes
2017-2021	~10%	Platform and capacity construction phase
2020-2025 (Forecast)	~46%	High-growth phase
2025-2030 (Forecast)	~27%	Steady-growth phase

: The relatively low growth rate in the early stage was mainly due to the company being in the platform construction phase with fewer CDMO project orders; after 2022, with the gradual launch of commercial-stage projects, the expected growth rate has increased significantly.

From a global market perspective, the CGT CDMO industry is in a period of rapid development[1][7]:

• Global market size
  : Grew from USD 50.4 million in 2016 to USD 2.08 billion in 2020, and is expected to reach approximately USD 30.54 billion by 2025
• Outsourcing rate
  : The outsourcing rate of the CGT CDMO industry is expected to exceed 65%
• Competitive landscape
  : The top four companies account for 54% of the market share, with Lonza holding the highest market share and WuXi AppTec ranking fourth

Zheshang Securities forecasts[1] that WuXi AppTec’s CGT CDMO business is expected to exceed

in revenue by 2027, achieving a tenfold growth compared to 2020. However, considering the business’s lower-than-expected performance in 2024, it may take a longer period to achieve this target.

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1. Short-term pressure
   : In 2024, WuXi ATU’s revenue declined by 19.43% with a loss of RMB 171 million, mainly affected by slow commercialization progress and policy factors
2. Strategic adjustments
   : By selling overseas assets and increasing capital in domestic businesses, the company is optimizing its global layout and focusing on core competitive areas
3. Long-term potential
   : Despite short-term pressure, the CGT CDMO industry is still in a period of rapid development, and the company’s accumulation in technology platforms and capacity lays a foundation for its long-term development
4. Project pipeline
   : 64 ongoing projects (including 2 commercial-stage projects) provide support for future growth

• Commercial-stage project progress falls short of expectations
• Policy risks (U.S. Biosecurity Act, etc.)
• Intensified industry competition
• Fluctuations in global R&D investment in innovative drugs

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[1] Zheshang Securities - Cell and Gene Therapy CDMO: A Tenfold Growth Industry in the Next Decade (2021)
https://pdf.dfcfw.com/pdf/H3_AP202107021501259695_1.pdf

[2] 21st Century Business Herald - WuXi AppTec’s “U-turn”: RMB 500 Million Capital Injection into WuXi ATU, Intensifying Competition in the CGT CDMO Track (February 19, 2025)
https://www.21jingji.com/article/20250219/herald/8d8725d785546bfeb41163c6435f07ea.html

[3] WuXi AppTec 2024 Annual Report
https://officialsite-static.wuxiapptec.com/upload/2024_ANNUAL_REPORT_60cf3bf4fb.pdf

[4] PR Newswire - WuXi AppTec Revenue and Profit Achieved Steady QoQ Growth in 2024 (March 2025)
https://www.prnewswire.com/news-releases/wuxi-apptec-revenue-and-profit-achieved-steady-qoq-growth-in-2024-meeting-full-year-guidance-q4-revenue-and-profit-both-reached-record-highs-302403048.html

[5] PatSnap - WuXi AppTec Divests US and UK Businesses, Focuses on Core Strategic Layout (December 30, 2024)
https://www.zhihuiya.com/news/info_6536.html

[6] The Beijing News - Despite Strong Performance, WuXi AppTec Insists on “Streamlining”, Plans to Divest Non-core Assets for RMB 2.8 Billion (October 28, 2025)
https://m.bjnews.com.cn/detail/1761641392168894.html

[7] Frost & Sullivan - Global Cell and Gene Therapy Market Data