Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — Investor Presentation (January 2022)
33 slides from Wuxi Apptec Co., Ltd. Class A's investor presentation, Jan 10, 2022
Slide 1: Industry Trend and Company Strategy
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: Rising Venture Capital Investments Fuel R&D Outsourcing Demand
1. Rising Venture Capital Investments in Life Science/Biotech Industry Fuel R&D Outsourcing Demand US Life Science VC Deal Value & Activity (USD bn) Median Life Science VC Deal Size by Series (USD mm) 5 Source: PitchBook, 2021
Slide 6: Global Healthcare R&D Expenditures Continue to Rise at ~7% Annually
1. Global Healthcare R&D Expenditures Continue to Rise at ~7% Annually, Small Companies R&D Expenditures Grow Much Faster Global R&D Expenditure Breakdown by Pharma Size, 2016-2030E US$bn Large Mid-sized Small Pharma/ Period Pharmaceutical Pharmaceutical Biotechs/ Total Companies Companies Virtual P
Slide 7: Number of Small Biotech Companies Increases Steadily to Reach 80% by 2027
2. Number of Small Biotech Companies Increases Steadily to Reach 80% by 2027 Number of Global Pharmaceutical Companies, 2016-2030E 80.8% 81.1% 80.2% 80.5% 79.9% 79.5% 78.7% 79.1% 28,593 78.2% 25,351 26,999 77.7% 105 77.2% 23,673 76.8% 76.0% 76.3% 21,992 104 75.2% 103 20,333 102 Large 5,311 18,720 10
Slide 8: Small Biotech Companies Contributed ~40% of FDA Approved New Drugs
2. Small Biotech Companies Contributed ~40% of FDA Approved New Drugs in Each Year Breakdown of FDA New Drug Approvals by Originator, 2016-2020 39% 39% 40% Large Pharmacuetical Companies 32% 31% Mid-sized Pharmaceutical 30 Companies 24 23 28 Small Pharma/Biotech 6 Companies/Virtual Pharma 8 5 12 5 P
Slide 9: Outsourcing Rate Increases Steadily in US and China
3. Outsourcing Rate Increases Steadily with US Outsourcing to Reach 58% and China Outsourcing to Reach 50% by 2026 China CRO outsourcing rate, 2016-2030E US CRO outsourcing rate, 2016-2030E 9 Source: Frost & Sullivan, July 2021
Slide 10: Global R&D Outsourcing Market to Accelerate to 11.4% Growth
3. Growth in Global R&D Outsourcing Market to Accelerate to 11.4% for 2020- 2025 with CGT CDMO Growing the Fastest at 35% CAGR Global Pharmaceutical R&D Outsourcing Market Size, 2016-2030E Billion USD Small CGT Period Discovery Preclinical Clinical molecule Total 274.6 CDMO CDMO 254.3 2016-2020 10.4
Slide 11: China Outsourcing Market Growing Over Twice Faster than Global Average
3. China Outsourcing Market is Growing more than Twice Faster than Global Average at CAGR 26% China Pharmaceutical R&D Outsourcing Market Size, 2016-2030E Billion CNY Small 540.3 CGT Period Discovery Preclinical Clinical molecule Total CDMO CDMO 479.1 2016-2020 37.6% 17.3% 22.9% 31.0% 29.8% 25.7% 20
Slide 12: Global R&D Outsourcing Demand to China Doubled from 6% to 12%
4. Global R&D Outsourcing Demand to China Doubled from 6% in 2016 to 12% in 2021, and to near Double again by 2026 Global Pharmaceutical R&D Outsourcing Services Market Breakdown by Region, 2016-2026E US US US 36% Rest of 40% 39% world Rest of Rest of 42% world world 49% 54% China China China 6% 12%
Slide 13: Small Molecule Remain Dominant Modality in Global Clinical Pipelines
5. Small molecule Remain Dominant Modality in Global Clinical Pipelines at 60% Breakdown of Global Pipeline Molecules by Small Molecule and Biologics, 2016-2020 65.4% 60.3% 62.2% 62.1% 59.6% 17,737 16,181 14,872 15,267 13,718 7,166 6,424 5,622 5,786 4,746 9,757 10,571 8,972 9,250 9,481 2016 2017 201
Slide 14: Frost & Sullivan Forecasts High Growth in Core Segments
6. Frost & Sullivan Forecasts High Growth in Core Segments that WuXi AppTec Provides Services Unit: billion CNY Unit: billion CNY Drug Discovery & Pre-clinical CRO Market (China-based) Clinical CRO Market (China-based) 1H21: WXAT up 45% YoY 1H21: WXAT up 57% YoY 88 102 75 84 63 67 52 53 42 33 41 33
Slide 15: Market Leading Position Across Segments of R&D Value Chain
6. Market Leading Position Across Segments of R&D Value Chain (based on 2020 revenues) China-based Drug Discovery CRO Market Share China-based Pre-clinical and Clinical CRO Market Share 2% 2% 4% WuXi 2% AppTec 8% 3% 11% 3% 4% 6% WuXi AppTec, 3% Others, 57% 54% 3% 26% 3% 2% 2% 2% China-based Small Mo
Slide 16: Our Strategy
Our Strategy -- Enabling excellence with a leading integrated CRDMO business model
Slide 17: Secular Growth Trajectory with Proven Strategy
We are on a Secular Growth Trajectory and will Continue to Maintain High Growth Momentum with our Proven Strategy: Follow the Sciences & Technologies, Follow the Customers, Follow the 1 Molecules 2 2 “C” Focus – Continue to build Capabilities and Capacities 3 Attract, train and retain talents to sup
Slide 18: Visionary and Experienced Management Team
Visionary and Experienced Management team Ge Li, Ph.D. Chairman & CEO Founder of WuXi. He has been Chairman and CEO of WuXi since its initiation in 2000 and he is now also Chairman of WuXi Biologics (2269 HK). Dr. Li is Ph.D. in Organic Chemistry from Columbia University and was founding scientist a
Slide 19: Attract, Train and Retain Talents to Support Rapid Growth
Continue to Attract, Train and Retain Talents to Support our Rapid Growth Rapid Expansion of Talent Base 28,542 1,858 Forecast Actual Total Employees ending Overseas June 30 2021 Employees 23,655 2,371 26,411 28,542 21,744 17,730 Research Manufacturing 14,763 11,422 Employees Employees PhD, 1149, 4%
Slide 20: Rapid Growing Customer Base of 5,200 Active Global Partners
Rapid Growing Customer Base of 5,200 Active Global Partners 20
Slide 21: Global Capacity Expansion in Progress
Global Capacity Expansion in Progress to Support Strong Growth for the next 5 years Jinshan Wuxi Munich Nantong Tianjin Oxford Couvet Minnesota Changzhou New Jersey Suzhou Philadelphia San Diego Chengdu Wuhan Shanghai Nanjing Capacities in Progress k m2 ~1,700 1,584 1,161 838 420 545 622 ~1,700K m2
Slide 22: Acquired OXGENE to Strengthen Gene Therapy R&D Capabilities
Acquired OXGENE to Strengthen Gene Therapy R&D Capabilities 22
Slide 23: Acquired Drug Product Manufacturing Facility in Couvet, Switzerland
Acquired Drug Product Manufacturing Facility in Couvet, Switzerland • Built in 2018, the Couvet site is a world-class facility designed for quality, safety, and efficiency. • The Couvet site will be the first facility in Europe for STA and will enhance STA’s existing capabilities while growing capac
Slide 24: Company Performance
Company Performance -- Track Record of High Growth Across Segments
Slide 25: 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 RMB billion +12.8% +4.9% +3.0% +13.3% +26.9% +6.2% -11.3% +8.3% +12.9% +7.2% +2.8% 10.8% +5.8% 5.6 4.7 5.0 4.6 4.0 3.4 3.6 3.1 3.2 2.7 2.8 26 2.3 2.5 2.1 2018Q1 2018Q2 20
Slide 26: 1H-2021 Business Highlights
1H-2021 Business Highlights “Long-Tail” Strategy Global Footprint 1,020+ New Customers 30 Global Sites & Branch Offices 5,220+ Active Customers 28,500+ Total employees 23,600+ Scientists & Technicians Loyal Customer Base 100% Retention of Our Top 10 Customers 1H21 Small Molecule CDMO Pipeline 7 INDs
Slide 27: Our Platform & Business Model Continues to Perform Well
Our Platform & Business Model Continues to Perform Well Global Platform Strong, Loyal & Execute Long-Tail Strategy Increase Customer Enabling Innovation Expanding Customer & Increase Support to Conversion to Sustain Worldwide Base Large Pharma Growth Revenue composition Revenue composition Revenue c
Slide 28: Revenues Grew Strongly from Customers in all Regions in 1H-2021
Revenues Grew Strongly from Customers in all Regions in 1H-2021, with ~76% Revenues Generated from Overseas Customers China Europe 2.50bn, +48% 1.49bn, +46% Revenue contribution: 24% Revenue contribution: 14% US 5.83bn, +43% Revenue contribution: 55% Others Japan, Korea & Others 7% EU China 24% 0.71
Slide 29: Case Study: 6 Months from Compound to IND, 9 Months to Phase 3
Case Study: 6 Months from Compound to IND, 9 Months to Phase 3 -- Case study how WXAT enabled a MNC client, delivering a COVID-19 project at incredible speed and scale Biology Initiated in March 2020, with quick assay expansion for support of the SAR studies STA Expect to complete several tons o
Slide 30: Five Integrated Business Divisions, all Market Leaders
Going forward We Operate our Business with Five Integrated Business Divisions, all Market Leaders Discovery Pre-clinical Clinical Commercialization WuXi Chemistry CSU STA (CDMO) IDSU WuXi Biology HitS Discovery Biology / Oncology & Immunology / HDB WuXi DDSU Domestic Discovery Service Unit WuXi Test
Slide 31: The Five Platforms Set to Drive Future Growth
The Five Platforms Set to Drive Future Growth Billion CNY Revenue Contribution by 5 Platform, 1H 2021 Revenue Breakdown by 5 Platforms, 2017-2021E ~+34%YoY 1.04 2017-2021E CAGR 1.07 WuXi Chemistry 31%+ WuXi Testing 29%+ WuXi Biology 31%+ 5% WuXi DDSU 20%+ 1.13 6% WuXi ATU 12%+ 0.88 1.0 3.24 1.1 0.78
Slide 32: We Continue to Believe
We Continue to Believe Our integrated CRDMO model is one-of-a-kind engine in global pharmaceutical and biotech 1 industry Our integrated 5 platforms with comprehensive capabilities and capacities will propel 2 our company to achieve strong growth for many years to come Our proven strategy of enablin
Slide 33: Thanks
Thanks ge ed 7 ay oe ‘ ES: Ea