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Q1 Earnings Season Review: How's the performance of your portfolio?
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The world's leading biopharmaceutical CDMO company, WuXi Biologics' commercialization continues to accelerate

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Wise Shark joined discussion · Jun 14, 2022 04:00
Thanks to the rising industry boom and the moat created by the company's superior technology platform, WuXi Biologics has a clear advantage in the Industry’s leading position and its market share has been increasing yearly. Overall, the company's integrated projects and the number of projects advancing to late clinical-stage and commercialization continue to grow. According to Everbright Securities, the company's high-performance growth is expected to continue.
Core view:
1. Biopharmaceuticalcal R&D outsourcing prospect is promising, and the leading companies are leading globally
The expanding size of the global biopharmaceutical market, the rapidly escalating cost of new drug development, and the increased reliance of pharmaceutical companies on CXO companies have generated rapid growth in the demand for the biologics CXO market. According to Frost & Sullivan, the global biologics CDMO market is expected to reach US$25.4 billion by 2025, and the Chinese biologics CDMO market is expected to reach US$4.4 billion by 2023. WuXi Biologics is a leading global biologics service provider. As of the end of 2019, the company's domestic and global market shares were 78.6% and 5.1%. The company is the absolute leader in the domestic market and leads the global market.
2. The "Follow & Win-the-Molecule" strategy has helped the Company focus on innovative drug discovery
(1) The Company's "Follow-the-Molecule" strategy has significantly increased the scale of its business. By the end of 2021, the Company had 480 integrated projects, an increase of 43.7% YoY, significantly improving project yields.
(2) The Company has also implemented the "Win-the-Molecule" strategy, which helps the Company focus on innovative drug development with leading-edge technology, optimal delivery time, and best delivery results, driving rapid pipeline growth. The typical industry average for the development cycle from DNA molecule to IND is 18-24 months. WuXi Biologics' development speed is much faster than the industry average, with the standard time reduced to 6 months.
3. Grasp the global innovation opportunity and accelerate the global production capacity layout
The company has seized the global innovation opportunity and has huge space to increase its production capacity. It is expected that the planned production capacity will be expanded to 430,000 liters by 2024, and the global leading-edge is expected to be further consolidated.
(1) Strong performance growth and a gradual shift to higher revenue business.WuXi Biologics' pre-IND service revenue and post-IND service revenue are both growing rapidly, with total revenue reaching 10,291 million yuan in 2021.
(2) Deepening customer collaboration and expanding order book. The Company has established cooperation with all of the top 20 global pharmaceutical companies in 2021, and the number of customers is steadily increasing. As the number of projects entering later stages continues to increase, the average revenue per project also continues to rise.
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