Summary of WuXi Biologics Cayman Inc Conference Call Company Overview - **Company**: WuXi Biologics Cayman Inc - **Industry**: Biologics and Biopharmaceuticals - **Market Cap**: HK$159,195 million - **Stock Rating**: Overweight - **Price Target**: HK$35.00 - **Current Price**: HK$37.66 - **52-Week Range**: HK$39.38 - HK$10.36 - **Fiscal Year Ending**: December 2024 Key Industry Insights - **Project Modalities**: As of mid-2025, WuXi has 864 integrated projects, with the following distribution: - **mAbs (Monoclonal Antibodies)**: 38% of total projects - **Bi-/Multi-specifics**: 19% of total projects, with a 37% year-over-year growth - **ADCs (Antibody-Drug Conjugates)**: 26% of total projects, with a 35% year-over-year growth - **Revenue Growth**: - **Bi-/Multi-specifics**: 1H25 revenue increased by 200% YoY on over 160 programs - **ADCs**: 1H25 revenue increased by 50% YoY on over 220 programs - **R&D Activity**: Strong performance in ADCs noted, with raised guidance from subsidiary WuXi XDC Financial Performance - **Revenue Projections**: - **2024**: Rmb 18,675 million - **2025**: Rmb 21,157 million - **2026**: Rmb 24,092 million - **2027**: Rmb 27,626 million - **Earnings Per Share (EPS)**: - **2024**: Rmb 0.79 - **2025**: Rmb 0.93 - **2026**: Rmb 1.15 - **2027**: Rmb 1.40 - **EBITDA**: - **2024**: Rmb 6,380 million - **2025**: Rmb 7,552 million - **2026**: Rmb 8,657 million - **2027**: Rmb 10,061 million Licensing and Contracts - **Biopharma Licensing**: Major driver of new contracts, contributing approximately 24% of cumulative revenue of US$11.7 billion from 2018 to 1H25 - **Contract Value**: Total contract value signed post-licensing amounted to US$2.8 billion from 2018 to 1H25 Geopolitical Context - **Tariffs**: US pharmaceutical tariffs on Singapore, EU, and China are at 10%, 15%, and 20% respectively - **Supply Chain**: WuXi's supply chain spans multiple regions, including the US, with a capacity roadmap of ~500,000L of bioreactor capacity Risks and Opportunities - **Upside Risks**: - Faster pharmaceutical market growth - Increased outsourcing of R&D globally - Stronger-than-expected biotech funding turnaround - **Downside Risks**: - Slowdown in biologics programs from pharma and biotech companies - Lower intensity of outsourcing R&D services - Geopolitical risks Conclusion - **Overall Outlook**: The biologics industry remains attractive, with WuXi positioned for growth through innovative project modalities and strong licensing activity. The company is navigating geopolitical challenges while maintaining robust financial projections and market presence.