Wuxi Biologics (Cayman) Inc. · HKEX:2269
Wuxi Biologics (Cayman) — WuXi Biologics — H1 2018 Earnings Presentation
39 slides from Wuxi Biologics (Cayman)'s earnings presentation, August 2018
Slide 1: Premier Biologics Platforms to Enable Global Innovations
Premier Biologics Platforms to Enable Global Innovations WuXi Biologics 2018 Interim Result (Stock Ticker: 2269.HK) August 2018
Slide 2: Forward-Looking Statements
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 believe
Slide 3: Use of Adjusted Financial Measures (Non-IFRS Measures)
Use of Adjusted Financial Measures (Non-IFRS Measures) We have provided adjusted net profit, net profit margin, EBITDA, EBITDA margin and diluted earnings per share for the first half of 2016 and 2017, which excludes the share-based compensation expenses, Listing expenses and a foreign exchange loss
Slide 4: Agenda
Agenda I. Result Highlights II. Technology Leadership and New Growth Areas III. Company Introduction IV. Financial Overview Appendix – Financial Summary 4
Slide 5: I. Result Highlights
I. Result Highlights `
Slide 6: Financial Highlights: Robust Revenue and Earning Growth
Financial Highlights: Robust Revenue and Earning Growth Robust revenue growth, increasing by 61.2% YoY, from RMB654.0 million to RMB1,054.4 million Gross profit rose 56.9% to RMB414.7 million. Gross profit margin was 39.3%, as compared to 40.4% of last year. Excluding foreign currency impact, it
Slide 7: Other Key Financial Information
Other Key Financial Information As of June 30, 2018, bank balances and cash, fixed deposits and financial assets amounted to RMB4,371.9 million in total No outstanding borrowings as of June 30, 2018 2018 CAPEX will be around RMB2,300 million, and RMB641 million has been incurred in 1H 2018 R
Slide 8: Business Highlights: Strong Operational Metrics
Business Highlights: Strong Operational Metrics Phenomenal growth in total backlog including both service backlog and upcoming potential milestone fees. Our total backlog increased from US$1,478.0 million as of Dec 31, 2017 to US$1,782.0 million as of Jun 30, 2018 Successful implementation of bu
Slide 9: Operational Highlights
Operational Highlights On March 6, 2018, the U.S. FDA granted approval for Ibalizumab (TrogarzoTM), marking another major milestone for WuXi Biologics First commercial manufacturing project showcasing success of “Follow-the-Molecule” strategy First FDA-certified cGMP biologics DS and DP facili
Slide 10: Recent Achievements
Recent Achievements 7,000L clinical manufacturing facility in Shanghai (MFG3): successful completion of the first cGMP run in July 2018 More than doubles existing clinical manufacturing capacity One of the largest biologics clinical manufacturing facilities globally with 6 production lines whi
Slide 11: World-Class Talent Continues to be a Key Success Factor
World-Class Talent Continues to be a Key Success Factor Dr. Chiang Syin, former FDA Associate Country Director, joined as Chief Quality Officer in January 2018 30+ years of experience in FDA regulatory review and GMP compliance of biological and biotech products Formerly a Gates Project Intern
Slide 12: Premier Quality and Robust Global Network
Premier Quality and Robust Global Network A GLOBAL company operating in many geographic regions to meet fast-growing global demands, leverage local talents, ensure global supply chain and mitigate geopolitical risks Ireland MFG6-6x1,000L perfusion MFG7-48,000L fed-batch North China (Shijiazhuang) MF
Slide 13: II. Technology Leadership and New Growth Areas
II. Technology Leadership and New Growth Areas `
Slide 14: State-of-the-Art Technology Differentiates WuXi Biologics
State-of-the-Art Technology Differentiates WuXi Biologics WuXiBodyTM Bispecific Antibody Drug Conjugate 1 2 Transgenic Animal For 3 Platform mAbs Discovery Discovery Combine any two antibodies and Access to OMT’s state-of-the-art Integrate our in-house antibody assemble into bispecifics transg
Slide 15: Global Launch of WuXiBody
Global Launch of WuXiBodyTM Bispecific antibody leverages two antibodies to achieve 1+1>2 to treat diseases Assembly and manufacturing of bispecifics severely limited the potential of this category of therapeutics Proprietary WuXiBody Platform may expedite the field of bispecifics and tremendo
Slide 16: Key Differentiation of WuXiBody
Key Differentiation of WuXiBodyTM Universal: almost any mAb sequence can be used to build bispecifics Eliminate CMC changes: no expression, aggregation or purification challenges – Save 6-18 months of development time Normal expression like a typical IgG (2.5 - 16 g/L) Easy purification usin
Slide 17: WuXia Cell Line Platform Enables Integrated Projects
WuXia Cell Line Platform Enables 60 Integrated Projects Per Year CHO Cell Line Platform WuXia means “perfect” 60 cell lines per year, one of the largest capacities IP filed for 2nd generation Wuxia platform 20+ ongoing clinical projects in U.S., EU and China have proved the platform and more
Slide 18: Best Technology Platforms Enable Consistent High Growth
Best Technology Platforms Enable Consistent High Growth WuXiBodyTM platform Up to 50 projects can be completed per year Each project may generate US$50-100 mm milestone revenue and 3-8% royalties May lead to 30 development projects as a new entry point for “Follow-the-Molecule” strategy Wu
Slide 19: Entering Global Vaccine Business to Support Future Growths
Entering Global Vaccine Business to Support Future Growths Recent vaccine quality incident in China may present opportunities for vaccine CDMO in China Initiated dialogs with Chinese regulators to pilot vaccine CDMO Emerging field of cancer vaccines and patient specific vaccines may present fu
Slide 20: III. Company Introduction
III. Company Introduction `
Slide 21: Business Model
Business Model Our Mission To accelerate and transform pharmaceutical discovery, development and manufacturing in the fast growing field of biologics to benefit patients worldwide Our “Follow-the-Molecule” Integrated Solution Model Our customers’ demand for our services increases as their biologics
Slide 22: Solid Business Progress – Integrated Projects
Solid Business Progress – Integrated Projects No. of Integrated Projects (1) Integrated Projects (1) By Phases 250 120 200 187 92 90 98 161 90 78 150 134 59 62 60 100 75 35 50 30 14 2 6 8 10 1 1 1 1 0 0 Jun 2016 Jun 2017 Dec 2017 Jun 2018 Preclinical Early Phase Late Phase Commercial Development Man
Slide 23: First Half 2018 Pipeline Highlights
First Half 2018 Pipeline Highlights “Follow-the- Molecule” strategy in full motion 1 Net added 26 molecules into the pipeline in 1H Commercial Several products with billion US$ potential 2018 US$100mm+ annual manufacturing revenue Total: 8 for global market, 2 for China only 187 6 molecules tr
Slide 24: Solid Business Progress – Backlog
Solid Business Progress – Backlog • Strong backlog growth, total backlog grew from US$1.478 billion as of Dec 31, 2017 to US$1.782 billion as of Jun 30, 2018 • Current service backlog is sufficient to support substantial revenue growth near term. As we continue to gain market share and add early sta
Slide 25: Rapid Business Progress Across Geographic Markets
Rapid Business Progress Across Geographic Markets RMB83.5 mm Rest of (1) the world YoY Growth: 127.5% RMB547.6 mm RMB52.9 mm RMB370.4 mm U.S. Europe PRC YoY Growth: YoY Growth: YoY Growth: 60.0% 172.7% 44.9% U.S. Europe PRC • The largest single regional • Second largest biologics market globally • D
Slide 26: Proven Track Record with Growing Customer Base
Proven Track Record with Growing Customer Base Expanding Customer Base and Increasing Average Revenue Selected Customers Number of Customers (1) Average Revenue per Customer among the Global Big Pharma Serviced in Each Period Top 10 Customers in Each Period (RMB mm) 88.4 202 163 168 65.9 60.7 151 12
Slide 27: Top 5 Player Globally and Dominant Share in China
Top 5 Player Globally and Dominant Share in China Market Share of Global Biologics Outsourcing Market Market Share of China Biologics Outsourcing Market by Revenue in 2017 (1) by Revenue in 2017 (1) AutekBio, Inc. BI BI Biologics 1.2% Biopharmaceuticals 7.3% Others 2.6% JHL Biotech Lonza Samsung Bio
Slide 28: Global Leading Technology Platforms with WuXi IP
Global Leading Technology Platforms with WuXi IP Biologics Discovery Platform (IP) CHO Stable Cell Line Platform (IP) High Density Cell Culture Platform (IP) Global Leading Protein Analytics Platform (IP) State-of-the-art Biologics Platform with Protein Purification/Formulation Platform (IP) superb
Slide 29: >220,000L MFG Capacity in Global Regions to Ensure Robust Supply Chain
>220,000L MFG Capacity in Global Regions to Ensure Robust Supply Chain GMP DS Capacity Location Comments Ready MFG1 5,000L fed-batch/perfusion 2012 Wuxi Commercial 28,000 L fed-batch MFG2 2017 Wuxi Commercial 2,000 L perfusion 5,200 L fed-batch MFG3 2018 Shanghai Clinical 1,500 L perfusion MFG4 10,0
Slide 30: IV. Financial Overview
IV. Financial Overview `
Slide 31: Phenomenal Financial Performance
Phenomenal Financial Performance Revenue Gross Profit RMB mm 34.6% 41.8% 43.3% 43.2% 43.3% 1,800 1,618.8 RMB mm 32.4% 39.3% 40.8% 40.4% 39.3% 900 1,200 1,054.4 660.6 989.0 600 414.7 654.0 389.1 557.0 264.3 600 300 180.7 0 0 2015 2016 2017 1H2017 1H2018 2015 2016 2017 1H2017 1H2018 Adjusted EBITDA (1
Slide 32: Robust Growth Across All Geographic Markets
Robust Growth Across All Geographic Markets (1) United States of America PRC Europe Rest of the World (2) RMB mm RMB mm RMB mm RMB mm 900.6 552.0 100.9 83.5 385.3 77.6 370.4 505.0 547.6 65.3 255.6 52.9 354.6 342.3 38.6 36.7 158.8 21.1 19.4 5.1 2015 2016 2017 1H20171H2018 2015 2016 2017 1H20171H2018
Slide 33: Revenue Breakdown by Development Stages
Revenue Breakdown by Development Stages RMB mm 1,750 1,618.8 1,500 569.6 1,250 35.2% 1,054.4 989.0 1,000 307.7 398.1 37.8% 750 31.1% 654.0 557.0 1,049.2 205.7 31.5% 500 222.3 39.9% 64.8% 681.3 68.9% 656.3 250 62.2% 448.3 334.7 68.5% 60.1% 0 2015 2016 2017 1H2017 1H2018 Pre-IND Services Post-IND Serv
Slide 34: Gross Margin Snapshot
Gross Margin Snapshot Cost of Services as % of Revenue Adj. GM (%) 34.6% 41.8% 43.3% 43.2% 43.3% GM (%) 32.4% 39.3% 40.8% 40.4% 39.3% 80% 67.6% 60.7% 60.7% 59.2% 59.6% 60% 21.8% 17.6% 18.3% 18.1% 19.2% 40% 20.9% 21.4% 19.8% 18.9% 18.7% 20% 24.9% 21.7% 21.3% 21.5% 23.7% 0% 2015 2016 2017 1H 2017 1H 2
Slide 35: Six Unbreachable “MOATS” of WuXi Biologics
Six Unbreachable “MOATS” of WuXi Biologics 1 Excellent IP protection (vs China and India competitors) 2 FDA accepted quality system: only company in China, top 10 among global CDMOs 3 World-class talent: 300+ senior scientists, 1,000+ entry-level scientists per year 4 Superb execution won trust from
Slide 36: Appendix – Financial Summary
Appendix – Financial Summary `
Slide 37: First Half 2018 Financial Summary
First Half 2018 Financial Summary (RMB million) 1H 2018 1H 2017 Change Revenue 1,054.4 654.0 61.2% Cost of Services (639.7) (389.8) Gross Profit 414.7 264.3 56.9% Other Income 40.8 16.1 Including Interest Income 26.3 0.7 Other Gains and Losses 12.3 (11.9) Impairment losses, net of reversal (19.6) (4
Slide 38: Reconciliation for Adjusted Net Profit and Adjusted EBITDA
Reconciliation for Adjusted Net Profit and Adjusted EBITDA (RMB million) 1H 2018 1H 2017 Change Adjusted net profit Reconciliation Net Profit 249.6 92.2 170.7% Share-based Compensation 52.1 30.7 69.7% Listing Expenses - 16.1 (-100)% Foreign Exchange Loss/(Gain) (5.0) 13.8 (-136.2)% Adjusted Net Prof
Slide 39: THANK YOU!
THANK YOU! Contact: Wang_yue0502@wuxiapptec.com Website: http://www.wuxibiologics.com