WuXi Biologics (2269) 43rd Annual J.P. Morgan Healthcare Conference summary

Business Model and Growth Strategy

• CRDMO model integrates research, development, and manufacturing, supporting end-to-end services and sustainable revenue and profit growth, with a focus on innovation and global expansion.

• 'Follow-the-Molecule' and 'Win-the-Molecule' strategies have driven portfolio expansion from 100 to 800+ assets and significant revenue growth since IPO.

• Over 150 new projects signed in 2024, with more than half from the U.S., reflecting robust global demand and high client retention.

• Multiple blockbuster manufacturing projects are positioned to generate $50M–$200M+ in annual peak revenue, with 62 new mega-deal clients signed last year.

• Global expansion includes facilities in China, Ireland, U.S., and Singapore, aiming for equal revenue from China and ex-China by 2030.

Technology, Innovation, and Partnerships

• Proprietary platforms like WuXiBody™ and WuXiUP™ enable rapid, high-yield development of bispecifics and complex biologics.

• Disposable manufacturing and continuous processing technologies are cost-competitive and flexible, with 300+ large-scale batches and 97%+ success rate.

• Ultra-intensified perfusion technology achieves up to 30–40 g/l titers, reducing carbon footprint by up to 80% and supporting green manufacturing.

• Strategic collaborations with major pharma (e.g., Merck, GSK) have resulted in high-value deals, milestone payments, and global licensing agreements.

• Accelerated IND timelines, with DNA-to-IND in 9 months for mAbs, enhance client speed to clinic.

Operational Excellence and Global Expansion

• Global network includes 4 research, 7 development, and 9 manufacturing centers across China, U.S., Europe, and Singapore.

• Ireland facility achieved profitability within five years, received industry awards, and all Irish sites received GMP approval.

• Strategic sale of the Ireland vaccine facility to Merck for ~$500M improved margin by 100 basis points and enabled a 6% share buyback.

• 24 PPQ campaigns scheduled for 2025, providing strong visibility for future CMO growth.

• CapEx will remain at RMB 5–6 billion annually for the next 2–3 years, supporting facility investments and share buybacks.