Group 1 - The core viewpoint of the article is that WuXi Biologics (02269) and WuXi AppTec (02268) have announced a comprehensive acquisition offer to acquire at least 60% of the shares of Easton Biopharma (01875) for a maximum price of approximately 2.8 billion yuan [1] - The acquisition is expected to help WuXi AppTec expand its business and gain additional operational production capacity in China, further enriching its project portfolio and expanding its customer base [1] - The acquisition is anticipated to solidify WuXi AppTec's leading market position in the field of ADC contract research and manufacturing organizations [1] Group 2 - Daiwa currently gives a "Buy" investment rating for WuXi Biologics [1]

Summary of Conference Call Records Industry Overview - The conference call primarily discusses the biopharmaceutical industry, focusing on several key companies and their projected performance for 2025 and beyond. The overall sentiment reflects a robust growth trajectory within the sector. Key Companies and Their Projections 1. WuXi AppTec (药明康德) - Expected revenue for 2025 is 454.56 billion CNY, a year-on-year increase of 15.84% - Adjusted net profit is projected to be 149.57 billion CNY, up 41.33%, with total net profit reaching 191.51 billion CNY, a 102.65% increase [2] - The company has 24 GLP-1 drug candidates, with 15 in Phase II and III clinical trials, indicating strong pipeline growth [4] 2. Kanglong Chemical (康龙化成) - Anticipates revenue between 138.72 billion CNY and 142.4 billion CNY, reflecting a growth of 13%-16% - Adjusted net profit is expected to be between 17.68 billion CNY and 18.48 billion CNY, a growth of 10%-15% [2] 3. Sunway Pharma (阳光诺和) - Projected revenue between 1.192 billion CNY and 1.37 billion CNY, a growth of 10.57%-27.15% - Expected net profit between 190 million CNY and 229 million CNY, a growth of 7.69%-29.23% [2] 4. AstraZeneca (阿斯利康) - Focused on cardiovascular, ADC, next-generation IO, and cell therapy TCE areas - Key clinical data readouts expected in 2026, which may impact market dynamics [5] 5. Gilead Sciences (吉利德) - Key projects include Cloud Native Top two ADC, expected to show promising data in TNBC treatment and potential approval in the second half of the year [8] - Anticipates significant changes in the first-line triple-negative breast cancer market due to the SG molecule [8] 6. DZD Pharma (迪哲医药) - DZD6,008 shows significant efficacy in non-small cell lung cancer (NSCLC) with an ORR of 60% and PFS exceeding 10 months [3][16] Clinical Trials and Data Readouts - Multiple companies, including Gilead, AstraZeneca, and others, are set to release important clinical trial data in 2026, which could reshape competitive dynamics in the NSCLC market [16] - AstraZeneca's ADC project 18.2 is expected to have significant clinical data readouts in 2026, with a focus on large-scale Phase III trials [7] Strategic Collaborations and Market Expansion - WuXi Biologics (药明生物) has signed a strategic cooperation memorandum with Qatar Free Zone Authority to expand into the Middle East market [4] - The conference highlighted the increasing participation of Chinese companies in the global pharmaceutical market, particularly in the dual-antibody and ADC sectors [22] Emerging Trends and Innovations - The industry is witnessing a shift towards L2.0 and ADC combinations, which are expected to become the next wave of drug development [17][18] - The importance of speed and mechanism synergy in new drug development was emphasized, indicating that early-stage projects have a higher success rate [18] Conclusion - The biopharmaceutical industry is poised for significant growth, with several companies reporting strong projections and innovative clinical developments. The upcoming clinical data releases in 2026 are anticipated to have a substantial impact on market dynamics and competitive positioning within the sector.

Company Update - The company participated in the 44th J.P. Morgan Healthcare Conference, where CEO Dr. Chen Zhisheng updated on the business status for 2025 and provided an outlook for accelerated growth in 2026 [1] - The number of new projects signed in 2025 reached a historical high of 209, surpassing 151 in 2024, with approximately half of the new projects coming from U.S. clients [1] - By the end of 2025, the total number of projects is expected to increase to 945, including 74 Phase III clinical projects and 25 commercial production projects, laying a solid foundation for sustained long-term commercial revenue growth [1] Industry Insights - The complex molecule sector shows high industry prosperity, with about two-thirds of the new projects in 2025 being bispecific antibodies and ADCs, indicating a sustained increase in global outsourcing demand for complex molecules [1] - The bispecific antibody business performed exceptionally well, with the number of projects increasing to 196, contributing nearly 20% of the group's revenue, and a year-on-year growth rate exceeding 120% [1] - The ADC pipeline also maintained strong expansion, with the number of projects increasing by 30% year-on-year to 252 [1] - The company is expected to benefit from structural upgrades in the industry as proprietary technology platforms like CD3 TCE continue to advance, enhancing technical barriers and customer stickiness [1] Commercialization and Global Strategy - In 2025, the company completed 28 PPQ projects, a year-on-year increase of 75%, with 34 PPQ projects scheduled for 2026 based on existing contracts [2] - The acceleration of PPQ projects is anticipated to gradually translate into increased CMO revenue and profit release as the number of Phase III and commercial projects rises [2] - The Singapore WuXi AppTec production base was completed on schedule in June 2025, and a strategic partnership with Qatar was established by the end of 2025 to enhance global operational resilience [2] Profit Forecast and Valuation - The profit forecast for 2025 remains unchanged, while the adjusted profit expectation for 2026 has been raised by 4.8% to 5.85 billion yuan, with a new forecast for 2027 set at 6.55 billion yuan [2] - The current stock price corresponds to adjusted P/E ratios of 29.7x for 2025, 25.5x for 2026, and 22.2x for 2027, with a target price increase of 25% to 45 HKD, reflecting an upward potential of 12.5% [2]

Core Insights - The article emphasizes the significant advancements and global presence of Chinese companies in the biopharmaceutical sector, particularly at the JPM 2026 conference, showcasing their capabilities in both service and innovation [7][10]. Group 1: Chinese Companies at JPM 2026 - WuXi Biologics reported a substantial increase in its CRDMO business, achieving 209 comprehensive project collaborations by 2025, up from 150 in 2024, with a focus on complex projects like bispecific antibodies and ADCs [7][8]. - Ascentage Pharma highlighted its global innovation pipeline, featuring key products like the third-generation BCR-ABL inhibitor and BCL-2 inhibitor, which are driving growth in hematological oncology [9]. - Approximately 24 Chinese innovative pharmaceutical companies presented their clinical data and R&D progress at the conference, indicating a shift from being followers to systemic innovators in the global market [9][10]. Group 2: Multinational Pharmaceutical Companies - AbbVie projected an 8% revenue growth for 2025, with a 19% increase in sales from growth platforms, emphasizing the potential of its core immunology products [11]. - Sanofi reiterated its commitment to commercializing respiratory and vaccine-related assets while enhancing its pipeline through external collaborations [11]. - Gilead focused on its long-term strategy in virology, aiming for extended dosing forms and broader disease coverage [12]. Group 3: Healthcare Services and Capital Markets - The third day of the conference saw a shift towards discussions on cash flow, asset quality, and operational resilience among healthcare systems, with many reporting progress in cost control and operational integration [13]. - There was a cautious approach to mergers and acquisitions, with executives indicating a preference for manageable, cash-flow-positive targets rather than high-premium, long-cycle assets [13]. Group 4: Overall Conference Signals - The overall tone of the conference shifted towards practicality, focusing on verifiable results and execution capabilities rather than speculative narratives [14].

Core Viewpoint - WuXi Biologics (2269.HK) experienced a 3.4% decline, closing at HKD 38.66, following the announcement of a block trade agreement involving its major shareholder, Biologics Holdings [1] Group 1 - Biologics Holdings has entered into a block trade agreement with Morgan Stanley to sell 150 million shares of WuXi Biologics [1] - The shares being sold represent approximately 3.63% of the total issued share capital of the company [1] - The sale price is set at HKD 38.52 per share, which reflects a discount of 3.75% compared to the closing price of HKD 40.02 on the previous day [1] Group 2 - The total amount involved in the transaction is approximately HKD 5.778 billion [1]

Core Viewpoint - WuXi Biologics Holdings Limited plans to sell 150 million shares of WuXi Biologics at a price of HKD 38.52 per share, which represents approximately 3.63% of the company's total issued share capital as of the announcement date [1] Group 1 - The share placement agreement was made with Morgan Stanley as the placement agent [1] - Before the placement, Biologics Holdings held approximately 501 million shares, accounting for about 12.12% of the company's total issued share capital [1] - Following the completion of the placement, Biologics Holdings' ownership in the company will decrease to approximately 8.49%, and it will no longer be considered a major shareholder [1] Group 2 - The chairman and non-executive director, Li Ge, controls approximately 19.66% of Biologics Holdings' issued share capital and 55.03% of the voting rights at Biologics Holdings' shareholders' meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 WUXI BIOLOGICS (CAYMAN) INC. 藥明生物技術有限公司* （於開曼群島註冊成立的有限公司） （股份代號：2269） 內幕消息 主要股東配售現有股份 配售現有股份 於 二 零 二 六 年 一 月 十 五 日，本 公 司 董 事（「董 事」）會（「董事會」）獲 本 公 司 其 中 一 名 主 要 股 東（定 義 見 上 市 規 則）WuXi Biologics Holdings Limited（「Biologics Holdings」）知會，其已與摩根士丹利國際股份有限公司（「配售代理」）訂立大宗 交易協議（「大宗交易協議」），據此，配售代理已同意以每股38.52港元的價格 向獨立於本公司且與本公司概無關連的各方配售由Biologics Holdings持有的本 公司150,000,000股現有股份（相當於截至本公告日期本公司已發行股本總額約 3.63%）（「配售」）。 – 1 – ...

Core Insights - The 44th J.P. Morgan Healthcare Conference (JPM) is a significant event in the global healthcare sector, attracting over 8,000 participants, with a strong representation from biotechnology and pharmaceutical companies [1][3] - Chinese pharmaceutical companies are increasingly participating in JPM, focusing on collaboration and showcasing their innovative pipelines, particularly in the context of a booming merger and acquisition landscape in the industry [1][4] Group 1: Conference Overview - The conference is recognized as a "barometer" for development and investment in the pharmaceutical sector, featuring industry leaders and innovators discussing trends and opportunities [3] - Key areas of focus at this year's conference include biotechnology and pharmaceuticals, which account for 35% and 33% of participating companies, respectively [3] Group 2: Chinese Pharmaceutical Companies - At least 30 Chinese pharmaceutical companies are participating, with several being regular attendees, indicating a growing presence in the global market [4][5] - Notable Chinese companies presenting include BeiGene, Zai Lab, and Legend Biotech, with significant advancements in their clinical pipelines being highlighted [4] Group 3: Investment Trends - Investors are increasingly interested in the integration of AI in pharmaceuticals and how multinational companies are addressing patent cliffs and BD strategies [4][5] - The perception of Chinese pharmaceutical companies is shifting from mere asset providers to co-creators of global pharmaceutical innovation, reflecting their growing capabilities [9] Group 4: Company Innovations - Companies like China Biologic Products are undergoing significant innovation transformations, aiming for over 50% of their revenue from innovative products by 2025 [7] - Yuyuan Pharmaceutical, previously seen as a generic drug company, is transitioning to focus on nucleic acid and peptide innovative drugs, indicating a strategic shift in their business model [8]

Core Viewpoint - WuXi Biologics announced a conditional cash offer to acquire Easton Biopharma, aiming to enhance its capabilities in the ADC and bioconjugate drug sectors, thereby accelerating its market position and operational efficiency [1][3][5]. Group 1: Acquisition Details - WuXi Biologics' subsidiary, WuXi AppTec, will acquire all issued shares of Easton Biopharma at a price of HKD 4.00 per share, representing a premium of approximately 99% over the undisturbed closing price and about 114.67% over the average closing price of the last 30 trading days [3]. - The total equity value of the transaction is approximately HKD 30.91 billion, based on the total number of shares issued by Easton Biopharma [3]. - Key shareholders, including major firms like Chengwei Evergreen Capital, have committed to accept the offer, ensuring that WuXi Biologics can secure at least 60% of the voting rights necessary for the deal to proceed [3][4]. Group 2: Strategic Implications - The acquisition allows WuXi AppTec to bypass the typical 3-5 year timeline required for building new production facilities, thus rapidly converting design capacity into actual delivery capabilities [2][5]. - This strategic move is expected to position WuXi AppTec advantageously in the competitive landscape of the ADC and bioconjugate drug CDMO industry, enabling it to meet the surging demand for high-quality production [5][7]. - Post-acquisition, Easton Biopharma will remain listed on the Hong Kong Stock Exchange and will be integrated into WuXi Biologics' operations without immediate changes to its management or workforce [4]. Group 3: Market Context - The ADC market is experiencing significant growth, with projections indicating a market size of approximately USD 17.2 billion by 2025 and a compound annual growth rate (CAGR) of 30.6% from 2023 to 2032 [7]. - The global ADC outsourcing services market is expected to reach USD 11 billion by 2030, with a CAGR of 28.4% from 2022 to 2030, highlighting the increasing demand for CDMO services [7]. - WuXi AppTec's acquisition is seen as a strategic response to the rapid expansion of clinical pipelines and commercialization in the ADC sector, positioning the company for future growth and competitive advantage [6][8].

Core Viewpoint - WuXi AppTec expects significant financial growth for the fiscal year ending December 31, 2025, with revenue projected to increase by over 45% compared to the fiscal year ending December 31, 2024 [1] Financial Performance Summary - Revenue is anticipated to grow by more than 45% compared to the fiscal year ending December 31, 2024 [1] - Gross profit is expected to rise by over 70% compared to the fiscal year ending December 31, 2024 [1] - Adjusted net profit before interest income and expenses is projected to increase by over 45% compared to the fiscal year ending December 31, 2024 [1] - After excluding the impact of exchange rate fluctuations, the growth rate is expected to exceed 65% [1] - Net profit, despite adverse effects from exchange and interest rate fluctuations, is expected to grow by over 38% compared to the fiscal year ending December 31, 2024 [1]