Guolian Minsheng Securities·2026-01-28 13:53Investment Rating - The report maintains a positive investment rating for the CXO industry, highlighting strong recovery and growth potential through 2026 [7][41]. Core Insights - The global CXO industry is experiencing a robust recovery, with significant performance from leading companies, and is expected to maintain high levels of activity into 2026 [1]. - Biotech financing reached a historical high in Q4 2025, indicating a rebound in demand from multinational pharmaceutical companies [7]. - The Chinese market is showing vitality in innovative drug development, with a 19% year-on-year increase in IND applications [7]. Summary by Sections 1. Global CXO Industry Recovery - The CXO industry is set for a strong recovery, with leading companies like WuXi AppTec showing impressive growth, projecting a revenue of 45.5 billion yuan in 2025, a year-on-year increase of 15.8% [10]. - WuXi AppTec's TIDES business is expected to grow over 90% in revenue, with a significant increase in production capacity [10]. - The number of IND applications in China reached 2,703 in 2025, a 19% increase from the previous year, indicating a growing clinical pipeline [26]. 2. Company-Specific Insights - WuXi Biologics: The company signed 209 new projects in 2025, with a total of 945 projects, reflecting a 16% year-on-year increase. The demand for new technology platforms is driving growth [15]. - WuXi AppTec: The company is expected to see a revenue growth of over 45% in 2025, with a focus on ADC and XDC projects, and a global market share increase to over 24% [18]. - Tigermed: The company is benefiting from a recovery in the CRO market, with a projected market size of 52.5 billion yuan in 2025 and a stable client structure [25]. 3. Investment Recommendations - For CRO, the report recommends focusing on leading platforms like Tigermed and specialized companies such as Huanbo and Zhaoyan [41]. - In the CDMO sector, it suggests investing in companies with strong positions in peptide supply chains and ADC trends, including WuXi AppTec and Huyuan Biotech [41].