Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — Investor Day (July 2022)
29 slides from Wuxi Apptec Co., Ltd. Class A's investor day presentation, Jul 27, 2022
Slide 1: Industry Trend and Company Strategy
2 0 2 2 W u X i A p p Te c I n v e s t o r D a y Industry Trend and Company Strategy Edward Hu Vice Chairman & Global Chief Investment Officer
Slide 2: Forward-Looking Statements; Non-IFRS Financial Measures
“ Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we belie
Slide 3: Industry Trend, Company Strategy, Company Performance
01 Industry Trend 02 Company Strategy 03 Company Performance Notes: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The unit of currency is RMB.
Slide 4: Industry Trend
Industry Trend -- Thriving Industry of CRO & CDMO
Slide 5: Innovation Drives Approval of Novel Drugs for Patients in Need
Innovation Drives Approval of Novel Drugs for Patients in Need 16 New Drugs have been Approved by FDA in 1H 2022 # Generic Name (Brand Name) Company Indications Approval Date 1 Vutrisiran (Amvuttra) Alnylam Pharmaceuticals For the treatment of the polyneuropathy of hereditary transthyretin-mediated
Slide 6: Innovation Drives M&A Activities for Big Pharmas to Fill its Pipeline
Innovation Drives M&A Activities for Big Pharmas to Fill its Pipeline 19 M&A Deals were Consummated in 1H-2022 Acquiring Acquired Deal Size Time Detail Company Company (USD) Announced to acquire ViaCyte, a privately held biotechnology company focused on delivering novel stem cell-derived cell 2022/7
Slide 7: Venture Capital Funding is Still Active Driven by Continuous Innovation
Venture Capital Funding is Still Active Driven by Continuous Innovation 2022 is off to the Fastest Start for Private Financings than Every Year except 2021 Biotech VC Funding US-Based Companies, All Rounds of Financing, By Quarter 7 Source: Life Sci VC, Pitchbook, data cut as of July 6, 2022
Slide 8: Venture Funds Continue to Raise Record Size New Funds
Venture Funds Continue to Raise Record Size New Funds to Invest in Next Generation Innovative Biotech Companies Top 16 Healthcare VCs Raised ~$24.6 Billions since December 2021 Institution Time Amount (USD) Focused Area Qiming China July, 2022 $3.2 B Outstanding companies in the Healthcare and Techn
Slide 9: Record Amount of VC Fundings Invested in Broad Spectrum of Technology Platforms
Record Amount of VC Fundings Invested in Broad Spectrum of Technology Platforms and Therapeutics Across Modalities The Majority of VC Funding Goes to Start-ups with Platform Technologies Seed to Series C VC Funding in Privately Held Biotech Companies, 2019-2021, USD billion Platform-based Therapeuti
Slide 10: Steady R&D Expenditure Growth Across the Lifescience Industry
Steady R&D Expenditure Growth Across the Lifescience Industry Global Healthcare R&D Expenditures Continue to Grow at ~8% Annual Rate, Small Companies R&D Expenditures to Grow Much Faster at ~12% Global R&D Expenditure Breakdown by Pharma Size, 2017-2030E Small Pharma/ US$bn Large Mid-sized Biotechs/
Slide 11: Number of Biopharma/Biotech Companies Continue to Grow
Number of Biopharma/Biotech Companies Continue to Grow at a Pace of Adding ~1,000 per Year Number of Small Biotech Companies Increases Steadily to Reach 80% by 2026 Number of Global Pharmaceutical Companies, 2017-2030E 81.2% 81.5% 80.5% 80.8% 80.1% 79.7% 78.8% 79.3% 78.3% 77.6% 77.2% 76.8% 76.0% 76.
Slide 12: Small Companies Become Increasing Important Force to Develop New Drugs
Small Companies Become Increasing Important Force to Develop New Drugs Small Biotech Companies Contributed ~40% of FDA Approved New Drugs in Each Year Breakdown of FDA New Drug Approvals by Originator, 2017-2021 Large Pharmacuetical Companies 42% 39% 39% 40% Mid-sized 31% Pharmaceutical Companies 30
Slide 13: Outsourcing Market Continuous to Expand Globally
Outsourcing Market Continuous to Expand Globally Outsourcing Rate Increases Steadily with US to Reach 60% and China to Reach 52% by 2025 China CRO outsourcing rate, 2017-2026E US CRO outsourcing rate, 2017-2026E 44.8% 42.8% 41.0% 39.5% 52.1% 49.8% 47.8% 49.7% 47.0% 57.4% 54.6% 58.2% 56.8% 55.3% 53.0
Slide 14: Outsourcing Market Grow Faster than the Overall R&D Expenditure Growth
Outsourcing Market Grow Faster than the Overall R&D Expenditure Growth Growth in Global R&D Outsourcing Market to Accelerate to 14% for 2021-2025 with CGT CDMO Growing the Fastest at 32.5% Global Pharmaceutical R&D Outsourcing Market Size, 2017-2030E Billion USD Small CGT Period Discovery Preclinica
Slide 15: Biopharma Industry Pipeline Grew Steadily over the past Five Years
Biopharma Industry Pipeline Grew Steadily over the past Five Years Small Molecule Remains the Dominant Modality while CGT Pipeline Grows the Fastest Breakdown of Global Pipeline Molecules by Small Molecule, Biologics and CGT, 2017-2021 35,000 77.0% 30,000 76.0% 75.5% 75.2% 75.0% 25,000 75.0% 74.5% 7
Slide 16: Our Strategy
Our Strategy -- Enabling excellence with a leading integrated CRDMO business model
Slide 17: We are on a Secular Growth Trajectory and will Continue to Maintain High Growth
We are on a Secular Growth Trajectory and will Continue to Maintain High Growth Momentum with our Proven Strategy: 1 Relentlessly execute our CRDMO & CTDMO business model 2 2 “C” Focus – Continue to build Capabilities and Capacities Globally 3 Attract, train and retain talents to support our rapid g
Slide 18: Industry Leading Integrated CRDMO/CTDMO Model
Industry Leading Integrated CRDMO/CTDMO Model Five Integrated Business Units to Drive Excellence in Execution Discovery Pre-clinical Clinical Commercialization WuXi Chemistry CSU STA (CDMO) IDSU WuXi Biology HitS Discovery Biology / Oncology & Immunology / HDB WuXi Testing DMPK / Bioanalysis Toxicol
Slide 19: Global Capacity Expansion in Progress to Support Strong Growth
Global Capacity Expansion in Progress to Support Strong Growth for Many Years to Come Changshu Wuxi Nantong Munich Tianjin Changzhou Oxford Couvet Minnesota Suzhou New Jersey Taixing San Francisco Delaware Philadelphia San Diego Chengdu Nanjing Shanghai Wuhan Lin-gang Singapore Jinshan Capacities in
Slide 20: Continue to Attract, Train and Retain Talents to Support our Rapid Growth
Continue to Attract, Train and Retain Talents to Support our Rapid Growth Rapid Expansion of Talent Base 39,716 2,159 Forecast Actual Total Employees ending Overseas June 30 2022 Employees 32,135 4,629 39,716 34,912 26,411 21,744 Research Manufacturing 14,763 17,730 Employees Employees PhD, 1,294, 3
Slide 21: Rapid Growing Customer Base of 5,800+ Active Global Partners
Rapid Growing Customer Base of 5,800+ Active Global Partners 21
Slide 22: Company Performance
Company Performance -- Track Record of High Growth Across Segments
Slide 23: Consistent Revenue Growth Quarter after Quarter
Consistent Revenue Growth Quarter after Quarter Consistent revenue growth quarter by quarter except 1Q20 due to COVID-19 pandemic +9.5% +32.8% RMB billion 9.3 +6.6% 8.5 +7.1% +12.8% +4.9% +3.0% +13.3% +26.9% 6.4 6.0 +6.2% 5.6 +8.3% -11.3% +12.9% 5.0 +7.2% +2.8% 4.6 4.7 +10.8% +5.8% 4.0 3.4 3.6 3.1 3
Slide 24: 1H-2022 Business Highlights
1H-2022 Business Highlights “Long-Tail” Strategy Global Footprint 650+ New Customers 32 Global Sites & Branch Offices 5,850+ Active Customers 39,716 Total employees Loyal Customer Base 36,764 Scientists & Technicians 100% Retention of Our Top 10 Customers Small Molecule CDMO 1H22 Pipeline 9 INDs; 19
Slide 25: Our Platform & CRDMO Business Model Continues to Perform Well
Our Platform & CRDMO Business Model Continues to Perform Well Strong, Loyal & Execute Long-Tail Strategy Increase Customer Expanding Customer & Increase Support to Conversion to Sustain Base Large Pharma Growth Revenue composition Revenue composition Revenue composition Existing clients Top 20 Globa
Slide 26: Revenues Grew Strongly from Customers across all Regions in 1H-2022
Revenues Grew Strongly from Customers across all Regions in 1H-2022 China Europe 3.17bn, +27% 1.85bn, +24% Revenue contribution: 18% Revenue contribution: 10% US 11.91bn, +104% Revenue contribution: 67% Japan, Korea & Others 0.82bn, +15% Revenue contribution: 5% 26
Slide 27: The Five Platforms Set to Continue to Drive Future Growth
The Five Platforms Set to Continue to Drive Future Growth WuXi Chemistry Set to Double its Revenues for 2022 on its Heel of Successful Execution of CRDMO Model Billion CNY Revenue Contribution by 5 Platform, 1H 2022 Revenue Breakdown by 5 Platforms, 2018-2022E 2018-2022E CAGR 68-72% YoY WuXi Chemist
Slide 28: Strong Commitment to Environmental Protection and ESG
Strong Commitment to Environmental Protection and ESG 10+ Global ESG Recognitions Sustainability Management and Technologies 2nd Green Chemistry Technology Platforms place in the entire global CXO • Biocatalysis industry in Year 2022 • Flow Chemistry • Direct Isolation Effective Sustainability Manag
Slide 29: WuXi AppTec is Well Positioned to Continue Strong Growth
WuXi AppTec is Well Positioned to Continue Strong Growth Scientific Discovery will Continue to Spawn New Biotech Companies that Drive Demand for our Services Our integrated CRDMO and CTDMO model will continue to drive strong growth and enable global pharmaceutical and biotech industry to discover, d