Core Viewpoint - Daiwa reports that WuXi Biologics (02269) and WuXi AppTec (02268) plan to make a full acquisition offer for at least 60% of the shares of Easton Biopharma (01875) for a maximum cost of approximately 2.8 billion yuan, with the expectation that Easton Biopharma will maintain its listing status after the acquisition [1] Group 1 - The acquisition is expected to help WuXi AppTec expand its business and gain additional operational production capacity in China [1] - The deal aims to enrich the project portfolio and expand the customer base for WuXi AppTec [1] - This acquisition is anticipated to strengthen WuXi AppTec's leading market position in the ADC contract research and manufacturing organization sector [1] Group 2 - Daiwa currently assigns a "Buy" investment rating to WuXi Biologics [1]

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]

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 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 J.P. Morgan Healthcare Conference highlighted WuXi Biologics' strategic growth in the biopharmaceutical sector, with a focus on expanding its project pipeline and capabilities in complex biologics, particularly bispecific antibodies [1][2] Group 1: Business Growth and Project Pipeline - WuXi Biologics plans to add 209 new integrated projects by 2025, bringing the total to 945 projects, with bispecific antibodies and ADCs becoming key growth drivers [1][2] - The company anticipates continued business growth momentum into 2026, with approximately half of the new projects originating from the U.S. market [1][9] - The bispecific antibody market is projected to grow significantly, with a compound annual growth rate (CAGR) of 32.4% from 2024 to 2034, reaching a market size of $221.8 billion by 2034 [2] Group 2: Technological Advancements - WuXi Biologics has developed proprietary platforms such as WuXiBody™ for bispecific antibodies, which have led to a robust project pipeline with nearly 20 projects in the R&D phase [3] - The company has introduced key development platforms, including WuXia™ TrueSite and WuXiHigh™2.0, aimed at enhancing production efficiency and stability in biologics [6][7] - The introduction of the digital twin platform PatroLab™ allows for real-time monitoring of critical process parameters, significantly improving data density and operational insights [12] Group 3: Global Expansion Strategy - WuXi Biologics is expanding its global footprint, with strategic investments in the U.S. and the establishment of a new CRDMO center in Qatar, marking its sixth global hub [1][10][11] - The company aims to replicate its successful production processes and management systems globally, enhancing its operational resilience and capacity to meet diverse client needs [11] - By 2029, WuXi Biologics expects to have over 370,000 liters of large-scale production capacity, with an annual output of 30 tons of biopharmaceuticals [11]

Core Viewpoint - WuXi Biologics emphasizes its unique CRDMO (Contract Research, Development, and Manufacturing Organization) business model, highlighting its capability to deliver sustainable high growth through a scaled and integrated platform [2][4]. Business Model - The company operates a scaled, integrated CRDMO model, positioning itself as a one-stop shop for biologics manufacturing [4]. - WuXi Biologics has successfully delivered on its vision that "every biologic can be made," achieving this for every project undertaken in the past 15 years [4]. Strategic Footprint Expansion - The presentation includes updates on the company's strategic footprint expansion, although specific details are not provided in the excerpts [3]. Technology Leadership and ESG Progress - WuXi Biologics aims to showcase its technology leadership and progress in Environmental, Social, and Governance (ESG) initiatives, indicating a commitment to sustainable practices [3]. Summary and Outlook - The CEO will provide a summary and outlook for the company, suggesting a forward-looking perspective on growth and development [3].

Core Viewpoint - In 2025, the Hang Seng Healthcare Index achieved a remarkable annual increase of 56.95%, driven by a bull market in innovative drugs, with CXO stocks also performing exceptionally well, particularly WuXi Biologics, which saw a stock price increase of 79.04% during the year [1] Group 1: Company Performance - WuXi Biologics' stock price reached over 40 HKD per share by January 14, 2026, with a year-to-date increase exceeding 28%, reflecting market revaluation of the innovative drug supply chain and sustained investment interest in CXO leaders [1] - The company raised its full-year revenue guidance for 2025 to 14%-16%, indicating a return to a high-growth trajectory [1] - In 2025, WuXi Biologics added 209 new comprehensive projects, with two-thirds focused on dual antibodies and antibody-drug conjugates (ADCs), bringing the total to 945 projects [3] Group 2: Business Structure and Growth - The acceleration from research (R) to development (D) to manufacturing (M) is a key driver of WuXi Biologics' rapid growth, with clinical projects increasing significantly across all stages [3][5] - The number of clinical projects in the preclinical stage reached 463, a year-on-year increase of 15.17%, while early-stage clinical projects grew by 16.77% to 383 [3] - The dual antibody business is particularly noteworthy, with 196 projects in the pipeline, a 30% increase year-on-year, contributing nearly 20% of total revenue with over 120% year-on-year growth [5] Group 3: Technological Advancements - WuXi Biologics has developed several advanced technology platforms, including WuXiBody™ for dual antibodies and WuXiUP™ for high-efficiency continuous bioprocessing, enhancing its capabilities in drug development [10] - The introduction of the PatroLab™ digital twin platform allows for real-time monitoring of over 40 key process performance attributes, significantly improving efficiency and data insights [10] Group 4: Global Expansion and Market Position - The company has expanded its global service network, establishing a "global six-pole" strategy that includes locations in China, Ireland, Germany, the U.S., Singapore, and Qatar [11] - The "global dual factory" strategy enables WuXi Biologics to replicate successful production processes and management systems internationally, addressing diverse supply chain needs [13] Group 5: Investment Potential - The combination of strong internal growth potential from complex molecules and commercial production, along with a robust global network, enhances WuXi Biologics' investment certainty [14] - Despite a stock price increase of nearly 80% in 2025, the company's PE ratio remains at 33.76, lower than peers like Lonza and Samsung Biologics, indicating significant long-term investment value [15]

Summary of WuXi Biologics FY Conference Call Company Overview - **Company**: WuXi Biologics (SEHK: 02269) - **Industry**: Biologics Contract Research, Development, and Manufacturing Organization (CRDMO) Key Points Business Model and Growth Strategy - WuXi Biologics operates a scaled integrated CRDMO model, emphasizing a one-stop shop for biologics manufacturing, aiming for sustainable high growth [2][3] - The company has delivered on its vision of making every biologic for the past 15 years, with a mission to accelerate discovery, development, and manufacturing for global partners [3][4] - The CRDMO Plus strategy focuses on client relationships, global expansion, and technological innovation [3] Performance Metrics - In the past year, WuXi signed **209 projects**, a record high, with over half from the U.S. [4][15] - The company aims to deliver **200 Investigational New Drug (IND)** applications this year, with a total of **600 INDs filed** over the past couple of years [6][4] - Manufacturing success rate is reported at **98-99%**, with a **100% approval rate** for Biologics License Applications (BLAs) filed [6][7][23] Revenue and Profitability - The biotech dollar generated from contracts reached **$4 billion** last year, with **20% of profit** coming from royalties and milestone payments [9][12] - The company expects to see a significant increase in revenue from its **bispecifics and ADCs**, with bispecifics growing at **120%** [18][21] - Projected revenue from the Qatar facility is estimated to reach **$500-$800 million** by 2030 [46] Technological Advancements - WuXi has invested in technologies such as the **CD3 platform** and a new cell line technology that significantly increases productivity from **2 grams to 10 grams per liter** [10][32] - The company is developing a **digital twin** of its manufacturing facility to enhance efficiency and automation [40] - WuXi is also focusing on converting IV products to SubQ for easier patient administration [38] Market Position and Competitive Advantage - WuXi Biologics holds a significant market share in complex modalities, with **two-thirds of its portfolio** consisting of ADCs and bispecifics [5][15] - The company has a **win-loss ratio of 20 to 1** over the past five years, indicating strong competitive positioning [48] Future Outlook - The company anticipates continued growth in R&D, development, and manufacturing, with a strong pipeline of projects [42][43] - WuXi plans to expand its global footprint, with significant investments in the U.S., Germany, Ireland, Singapore, and Qatar [27][30] - The number of **PPQs (Process Performance Qualifications)** is expected to triple, indicating robust future manufacturing growth [25][42] ESG and Compliance - WuXi Biologics emphasizes its strong ESG performance, claiming one of the highest scores in the industry [41] Conclusion - WuXi Biologics is positioned for strong growth driven by its innovative CRDMO model, technological advancements, and a robust project pipeline, with a focus on expanding its global presence and maintaining high standards of quality and compliance [42][43]