Core Points - EUROAPI announces the resignation of Rodolfo J. Savitzky as Independent Director and Chair of the Audit Committee, effective December 31, 2025, following his appointment as Chief Financial Officer of Recipharm [1] - The search for a new Independent Director has commenced, with an expected appointment before the end of the year [1] - Savitzky expressed confidence in EUROAPI's Focus-27 plan and its position as a leading player in the active pharmaceutical ingredients (API) industry [3] Company Overview - EUROAPI focuses on reinventing active ingredient solutions to meet global customer and patient needs, with approximately 200 products in its portfolio [3] - The company operates five manufacturing sites in Europe and supplies customers in over 80 countries, emphasizing high-quality API manufacturing [4] - EUROAPI is listed on Euronext Paris under the ticker EAPI [4]

Summary of WuXi AppTec Investor Day and Related Insights Company Overview - **Company**: WuXi AppTec - **Industry**: Contract Development and Manufacturing Organization (CDMO) - **Market Position**: Largest CDMO in China with a 28% market share in the total outsourcing market as of 2022 and a 16% global market share in small-molecule new drug projects under clinical development [doc id='8'][doc id='15'] Key Insights from the Investor Day - **Impact of US Pharma Tariff**: The recently announced 100% tariff on branded drug imports by the US is not expected to directly impact WuXi AppTec, as CDMO customers typically bear the tariff costs. The company is expanding its US manufacturing capacity to meet local demand [doc id='2'][doc id='5'] - **R&D Capabilities**: Management highlighted WuXi AppTec's strong R&D capabilities, operational efficiency, and cost-effectiveness, although specific future growth targets were not provided [doc id='2'] - **Emerging Modalities**: The company is expanding its capabilities in emerging modalities such as peptides, oligonucleotides, and complex conjugates, which are crucial for future growth [doc id='2'] Financial Performance and Growth Drivers - **TIDES Business Growth**: WuXi AppTec's TIDES business (focused on peptides and oligonucleotides) is projected to surpass RMB 10 billion in revenue by 2025, with over 80% year-over-year revenue growth [doc id='6'] - **Project Contributions**: "R" stage projects contribute approximately 70% of new customers, with a 40% penetration rate in the small molecule "R" stage market. The average molecular weight of drug candidates has increased by 14% over the past five years [doc id='5'] - **Operational Excellence**: The company has implemented a sophisticated operational excellence program, achieving a gross margin of 45% and a net profit margin of 30%. Facility utilization has improved from 60% to 72%, and new plant ramp-up times have been reduced from two years to two months [doc id='7'] Strategic Initiatives - **Global Expansion**: WuXi AppTec is focusing on global expansion, with over 85% of capital expenditure directed towards high-demand, late-stage development and manufacturing capabilities. Major projects in the US and Singapore are part of this strategy [doc id='7'] - **Geopolitical Risk Mitigation**: The expansion into the US is also a strategic move to mitigate geopolitical risks and meet client demand for localized supply chains [doc id='7'] Valuation and Price Target - **Price Target**: The price target for WuXi AppTec is set at RMB 138.00 for June 2026, based on a discounted cash flow (DCF) valuation with a terminal growth rate of 3.0% and a weighted average cost of capital (WACC) of 9.8% [doc id='9'] - **Valuation Metrics**: The DCF analysis indicates an equity value per share of RMB 138, with significant upside potential from current levels [doc id='10'] Risks and Considerations - **Downside Risks**: Key risks include geopolitical tensions, competition from overseas CDMOs, product development failures, and potential losses in biotech investments [doc id='12'][doc id='19'] - **Upside Risks**: Potential improvements in the geopolitical environment, earlier-than-expected biotech funding growth, and faster project growth could positively impact the company's performance [doc id='13'] Conclusion WuXi AppTec remains a strong player in the CDMO space, with robust growth prospects driven by its operational excellence, expanding capabilities in emerging modalities, and strategic global expansion efforts. The recent US pharma tariff is not expected to hinder its growth trajectory, making it a compelling investment opportunity in the healthcare sector.

Core Insights - The company reported strong interim results for the first half of 2025, with revenue reaching RMB831.9 million and a gross profit margin of 40.8%, reflecting a significant improvement in operational efficiency and business structure optimization [1] - The CRO business experienced a positive growth trajectory, with revenue increasing by approximately 9.6% year-over-year, driven by a recovery in global biopharmaceutical investments and a surge in domestic innovative drug transactions [2] - The company has successfully expanded its client base, serving 1,669 CRO clients, including all top 10 global pharmaceutical companies, with overseas revenue contributing approximately 85% [3] Financial Performance - Revenue for the first half of 2025 was RMB831.9 million, with a gross profit of RMB339.4 million, leading to a gross profit margin increase of 6.3 percentage points [1] - Net profit amounted to RMB148.6 million, a 3.1% increase year-over-year, while adjusted non-IFRS net profit rose by 9.1% to RMB183.5 million [1] - Langhua Pharmaceutical's revenue reached RMB409.0 million, with an adjusted gross profit margin of 37.9%, reflecting a year-on-year increase of 7.9 percentage points [8] CRO Business Development - The CRO business saw a revenue increase to RMB422.8 million, with adjusted gross profit rising to RMB194.6 million, attributed to improved operational efficiency and a robust order backlog [2] - New modalities accounted for approximately 15% of CRO revenue, growing nearly 19% year-on-year, indicating a shift towards innovative drug development [4] - The company has integrated AI technology into its drug discovery platform, contributing to nearly 10% of total CRO revenue [5][6] CDMO and CMC Business - The company is enhancing its CDMO capabilities through the acquisition of Langhua Pharmaceutical, which has initiated new commercialization projects [7] - Langhua Pharmaceutical's adjusted gross profit margin improved significantly due to structural optimization in its CDMO business [8] - The CMC business has shown significant profitability improvements, with a focus on synthesis and analysis operations [10] Investment and Portfolio Management - The company successfully exited investments from various portfolio companies, generating total proceeds of nearly RMB76.5 million [12] - As of June 30, 2025, the company had invested in 93 portfolio companies, with a significant portion located in North America [12][13] - The company is actively participating in establishing an RMB-denominated fund to support biopharmaceutical ventures [15] Infrastructure and Workforce - As of June 30, 2025, the company employed 2,085 staff, with a significant number dedicated to CRO R&D [16] - The company has expanded its facilities, including a new headquarters in Shanghai and multiple parks for R&D and production [17][18] - The Shanghai Supercomputing Center has been operational, supporting advanced drug discovery computations [19] Strategic Vision - The company aims to strengthen the synergy between its CRO and CDMO businesses, enhancing its one-stop innovative drug R&D platform [20] - Future plans include boosting revenue growth and profitability through strategic partnerships and improved operational efficiencies [11][22]

Financial Data and Key Metrics Changes - In H1 2025, group revenues reached €371 million, a 5% decrease compared to 2024, primarily due to an 11% decline in DMPD revenues to €269 million, influenced by a temporary decline in BMS revenues [17][18] - Just Evotec Biologics (JEP) achieved €102.2 million in revenue, reflecting a 16% year-over-year growth, driven by strong demand from non-Sandoz and DoD customers [18][19] - Adjusted group EBITDA was negative €1.9 million, with a strong contribution of €7.5 million from JEP, offsetting lower operational leverage from the DMPD segment [19][20] Business Line Data and Key Metrics Changes - DMPD segment saw an 11% revenue decline, attributed to a temporary effect in the BMS collaboration and continued softness in the early drug discovery market [10][17] - JEP segment outperformed with a 16% revenue growth year-over-year, driven by expanding customer base and strong demand [13][19] - R&D spending decreased by 35% year-over-year, from €29.3 million in 2024 to €19 million in 2025, aligning with strategic focus [19] Market Data and Key Metrics Changes - The biotech funding landscape remains complex, with early-stage investments lagging behind later-stage funding, leading to cautious spending behavior in early-stage R&D [14][15] - Signs of a modest recovery in funding are emerging, with expectations for a more normalized distribution of funding and project flow in the coming quarters [15] Company Strategy and Development Direction - The company unveiled a new strategy in April 2025, focusing on pioneering drug discovery and development, operational excellence, and sustainable profitable growth [5][8] - The business model is evolving towards two core segments: discovery and preclinical development (DMPD) and Just Evotec Biologics (JEP), with an emphasis on reducing complexity and enhancing accountability [9][12] - The planned sale of the Toulouse site to Sandoz is part of the strategy to lean into JEP's capabilities as a scalable technology provider, marking a significant milestone in the asset-light model [13][35] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market challenges but expressed confidence in the progress made and the transformation efforts underway [5][6] - The company anticipates improved visibility towards midterm goals following the Sandoz transaction, with a bold aspiration of 8% to 12% revenue CAGR and greater than 20% EBITDA margin by 2028 [40][41] - Management highlighted the importance of leveraging technology and scientific leadership to create new business opportunities and enhance value creation [27][30] Other Important Information - The company is navigating a cautious funding environment, particularly in early-stage biotech, while maintaining a strong pipeline and operational rigor [14][15][20] - The expansion of the molecular patient database is a key strategic initiative, enhancing capabilities in precision medicine and drug discovery [23][25] Q&A Session Summary Question: Guidance for 2025 and recovery in funding - Management does not expect a significant impact from VC funding recovery in the second half of 2025 [44][45] Question: Breakdown of R&D business revenues - Management indicated that the transactional part of the R&D business is shrinking relative to integrated and large partnerships, which are growing [46][47] Question: Value transfer from the Sandoz deal - Management emphasized the importance of technology capabilities and ongoing revenue streams from milestones and royalties, but did not provide specific numbers [48][49][53] Question: Trends in DMPD segment and customer spending - Management noted cautious spending behavior among biotech customers and mixed dynamics among pharma partners [56][60][62] Question: Pricing environment and competition - Management acknowledged increased price sensitivity in the transactional segment but emphasized the value provided in integrated partnerships [69][71] Question: Geographic market dynamics - Management observed different market behaviors, with stronger traction in East Asia compared to the US and Europe [73][74] Question: Mix of JEP business revenue sources - Management stated that current revenue from JEP is a package of drug production and licensing, with a focus on monetizing assets fully [75][78] Question: Rationale for the sale of the Toulouse site - Management reiterated that the sale aligns with the strategic direction and timing for the company [86] Question: Kidney disease projects and revenue proportion - Management highlighted ongoing investments in kidney disease research and partnerships with major pharma companies [90][91] Question: Customer base for JEP growth - Management confirmed that growth in JEP is derived from a mix of small and large pharma customers, primarily in earlier-stage development [94]