药明康德副董事长、全球首席投资官胡正国称：“生物安全法由尚在任期内的本届国会发起，美国大选对尚在立法流程中的生物安全法没有直接影响，该法案能否在本届国会任期内通过仍然存在不确定性。”1. The US presidential election has no direct impact on the ongoing legislative process of the biosecurity law; 2. Regarding the uncertainty brought by the upcoming appointment of Xavier Becerra as the US HHS Secretary, WuXi AppTec emphasized that "customer demands for cost, efficiency, and quality will not change"; 3. As of the end of September, WuXi AppTec had orders in hand totaling 43.82 billion yuan, a year-on-year increase of 35.2%.
On November 18, Caixin reporters, today, WuXi AppTec (603259.SH) held a Q3 earnings conference, as a leading domestic CXO and a key stakeholder in the biosecurity law, many investors repeatedly asked questions about the progress of the law and the company's business prospects in the US.
"After the US election, with the Trump administration taking office, how does this affect the legislative evolution of the Biosecurity Law?" Numerous investors and Caixin reporters asked the management of Wuxi Apptec about this topic multiple times.
WuXi AppTec's Vice Chairman and Global Chief Investment Officer Hu Zhengguo said: "The Biosecurity Law was initiated by the current Congress, and the US election has no direct impact on the ongoing legislative process of the Biosecurity Law. The uncertainty remains as to whether the bill can be passed during this Congress".
In addition, there is widespread market concern about the impact of the new US Secretary of Health and Human Services, Robert F. Kennedy Jr., under the Trump administration, on the uncertainty in the US biomedical industry.
Xavier Becerra is seen as an "anti-vaccine advocate." In September this year, Becerra published a signed article in The Wall Street Journal outlining his "MAHA" philosophy and specific plans. The core mission of MAHA is to reverse the prevalence of chronic diseases, attributing this to large American food and pharmaceutical companies, believing that these industries use lobbying power to sacrifice public health in exchange for maximum profits.
Following this news, the stock prices of globally renowned vaccine manufacturers plummeted on the 14th, with Moderna falling by 6%, Pfizer by nearly 2%, Germany's BioNTech closing down 7%, and UK's GlaxoSmithKline falling by 2%. The US biotechnology index (XBI) also experienced consecutive large drops in the following days, with a decline of more than 10%.
"The impact of Xavier Becerra as the US Secretary of Health and Human Services on the innovative drug development environment" "Will the company reduce its investment in the US in the future?" Despite investors, including Caixin reporters, repeatedly raising such questions, the management of WuXi AppTec has yet to directly address the issue, only stating," Regardless of how the external operating environment changes, customer demands for cost, efficiency, and quality will not change, and the company's unique CRDMO business model will continue to drive the company's sustained growth."
According to financial data, in the first three quarters of this year, Wuxi Apptec achieved revenue of 27.7 billion yuan, a decrease of 6.23% year-on-year; achieving a net profit attributable to the parent company of 6.533 billion yuan, a decrease of 19.11% year-on-year.
According to the management of Wuxi Apptec at the earnings conference, as of the end of September 2024, the company's order backlog is 43.82 billion yuan, a year-on-year increase of 35.2%. "The company will continue to increase production and operation efficiency. Considering the impact of new production capacity ramp-up and exchange rates, it is expected that the non-IFRS net margin attributable to the parent company will remain at a level similar to last year after adjustment for 2024."
