WuXi Biologics (2269) Our CRDMO Business Model Explained Presentation summary

CRDMO business model and integrated solutions

• Provides end-to-end services from discovery to manufacturing, enabling partners to develop biologics efficiently.

• Model validated over the past decade, resulting in the largest biologics pipeline and leadership in development.

• Research, development, and manufacturing have reached inflection points, supporting sustained growth.

• Fully Integrated Project (FIP) supports clients from concept to IND, with potential for upfront, milestone, and royalty payments.

• Development team reduces mAb project cycle from DNA to IND to 9 months, maintaining high quality.

Financial and growth highlights

• Upfront payments can reach $40m+ per program, with milestone fees up to $200m+ and royalties up to 10% of drug sales.

• High project retention: over 90% of research projects advancing to development and manufacturing remain with the company.

• Annual commercial manufacturing revenue potential of $50-100m per program.

• Contract-to-revenue conversion: research (4-10 weeks), development (6-15 months), manufacturing (2-10 years).

• Gross profit margins: research (80%+), development (50%+), manufacturing (45%+).

Project pipeline and business momentum

• 151 new projects signed in 2024, with over half from the U.S., reflecting robust business momentum.

• 20 projects won in 2024, including 13 late-stage and CMO projects, mostly from the U.S.

• 66 late-stage and 21 non-COVID CMO projects, with manufacturing projects up 31% YoY.

• Research services have enabled 50+ programs for global clients, with 45%+ sponsored by ex-China clients.

• Royalty rates for partnered programs range from low single digits to 10% of drug sales.