2025 WuXi AppTec Investor Day
Research Enabling Platforms Enhance CRDMO Business ModelSteve Yang, Ph.D.
1
Co-CEO
Global R&D Pipelines Keep Growing Steadily over Past Years
Small Molecule Remains the Leading Modality, with Increasing Contributions from New Modalities
Global R&D Pipeline by Modality, 2015-2024
64.8%
65.4%
62.2%
62.1%
60.3%
59.6%
57.1%
54.9%
54.9%
54.3%
# of pipelines
12,300
13,718
14,872 15,267 16,181
17,737 18,582 20,109
21,292 22,825
7,970
8,972
9,757
9,481
9,250
11,040
10,610
10,571
12,399
11,680
4,330
4,746
5,786
5,622
6,424
7,166
7,972
9,069
9,612
10,426
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
3 Source: Frost & Sullivan, September 2025; internal analysis.
Steady Growth in Global Pharmaceutical R&D Spending Across the Industry
Global Pharmaceutical R&D Spending to Grow at ~6% CAGR (2024-2029E); Large and Mid-size Pharmas Contributing ~80% Today; Small Biopharmas' Share to Rise from ~20% to ~30% by 2034E with ~9% CAGR
Period | Large Pharmas | Mid-size Pharmas | Small Pharmas/ Biotechs/Virtual Pharmas | Total |
2015-2024 | 6.1% | 6.4% | 8.9% | 6.7% |
2024-2029E | 3.8% | 6.6% | 10.3% | 6.1% |
2029E-2034E | 3.5% | 3.5% | 9.2% | 5.0% |
Global R&D Spending by Pharma Company Size, 2015-2034E
456.3
434.4
413.1
392.9
373.1
141.3
USD billion
353.3
122.4
133.3
334.0
111.6
314.2
101.1
82.0
90.9
154.9
26.0
48.1
156.9
22.7
50.1
165.1
26.3
52.3
174.0
30.8
54.3
182.4
34.6
204.8
37.7
224.1
42.1
241.5
46.5
260.6
50.9
277.6
55.8
295.4
61.2
67.3
74.2
137.2
123.5
127.7
132.2
110.4
115.8
119.7
78.7
84.1
90.1
96.8
104.1
67.6
72.9
56.4
61.7
190.8 197.6
144.1
150.1
155.7
160.9
166.4
172.1
178.0 184.3
80.9
84.0
86.5
88.9
91.4
105.4
114.4
122.1
131.0
137.7
476.1
2015
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E
4 Source: Frost & Sullivan, September 2025.
Large Pharmas, with sales >$1Bn; Mid-size Pharmas, with sales between $100M and $1Bn; Small Pharmas/Biotechs/Virtual Pharmas, with sales <$100M.
Diversified Funding Sources in Ecosystem to Ensure Continued R&D Investment
Despite Some Challenges in Capital Market, H1 2025 has been Strong in Dealmakings (Licens ing and M&A)
for Biopharmas to Accelerate Pipeline Replenishment
USD billion
Global Biotech Funding (IPO + FO + PIPE + VC)
Global License Deals (Upfront & Total Values)
179.7 182.1
177.9
182.9
189.8
120.0
119.9
19.8
15.6
14.6
10.7
12.8
13.3
10.8
H1
2019 2020 2021 2022 2023 2024 H1 2025
USD billion
USD billion
Global M&A Deals (Total Values)
203.7
87.8
76.0
145.4
127.6
78.4
70.5
50.3
42.5
H1
72.0
50.1 47.7 50.4 | 24.2 | |
H1 |
2019 2020 2021 2022 2023 2024 H1 2025 2019 2020 2021 2022 2023 2024 H1 2025
5 Source: Jefferies; JPM; internal analysis.
For this analysis, deals of pure-play drug developers are included; medtech, distribution-only and digital health are excluded.
Diversified Modality Demands in Early Stage R&D Investment
Established Modalities (Small Molecule & Biologics) Continue to Lead, while New Modalities Gain Traction
VC Funding by Modality, 2022 - H1 2025
USD billion
Others, 5.8
Peptide, 8.5
Oligo, 8.8
CGT, 20.4
Antibody / Protein, 30.0
Small Molecule, 43.7
6 Source: internal analysis.
This analysis includes deals of global drug development companies aimed at expanding pipelines and technological capabilities, including drug licensing, co-development and M&A.
Innovators Across Regions Ensure the Continuous Emergence of Innovation
In Addition to US, Europe & China are Important Innovation Hubs, Each with ~50% as Many Companies as US
Number of Pharmaceutical Companies by Development Phase
# of companies
1,979
1,247
1,027
732
718
687
763
827
477
561
522
559
566
553
401
337
329
384
220
256
245
67
42
135
98
175
119
27
USA Europe China APAC ex-China
7 Source: Cortellis, July 03 2025; internal analysis.
This analysis includes companies with drug(s) from discovery to launched phase, and development phase is based on the highest R&D stage among all pipelines within the company.
Scientific Innovations Continue to Generate ~1,000 New Companies Annually
Large and Mid-size Pharmas Account for ~20%, while Small Biopharmas Gradually Expand to 80%+
Number of Global Pharmaceutical Companies, 2015-2034E
82.4%
82.8%
81.6%
82.0%
80.8%
81.2%
79.5%
80.0%
80.4%
77.6%
78.4%
26,001
26,866
76.8%
77.2%
25,074
76.0%
76.3%
23,070
24,094
275
285
22,012
266
73.8%
74.2%
16,231
17,342
209
18,119
215
18,974
19,900
227
20,911
234
241
249
257
3,965
4,028
4,081
221
3,714
3,807
3,891
# of companies
14,143
200
15,145
203
3,610
204
3,511
9,807
8,146
8,793
162
1,971
170
2,099
10,894
188
2,395
11,968
185
13,054
194
3,419
3,131
3,251
3,328
2,961
3,074
181
2,172
2,591
2,785
19,946
20,843
21,698
22,501
17,067
18,057
19,014
13,882
14,576
15,334
16,162
10,075
10,982
11,868
12,896
6,013
6,524
7,454
8,311
9,192
83.1% 83.4% 83.8%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E
8 Source: Frost & Sullivan, September 2025.
Large Pharmas, with sales >$1Bn; Mid-size Pharmas, with sales between $100M and $1Bn; Small Pharmas/Biotechs/Virtual Pharmas, with sales <$100M.
Global Outsourcing Market Continues to Expand with Increased Innovation Contributions from Small Companies and Diversified Demands
Global CRO Outsourcing Penetration Exceeding 50% in 2024 and Expected to Reach 65%+ in 2034E
Global CRO Outsourcing Rate, 2015-2034E
36.5%
34.8%
36.3%
37.7% 38.7%
40.7%
43.7%
47.1%
49.2%
51.9%
54.0%
55.6%
57.2%
58.7% 60.0%
61.8%
63.0% 63.9%
64.9%
65.6%
34.4%
35.1%
36.1%
37.0%
38.2%
40.0%
41.3%
42.8%
44.4%
46.0%
48.1%
50.8%
52.9%
56.3%
59.3%
61.3%
62.3%
63.5%
63.7%
65.2%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E
9 Source: Frost & Sullivan, September 2025.
Global Outsourcing Market Grows Faster than Overall R&D Spending
Global Outsourcing Market Growing at 11.9% CAGR 2024-2029E, with Momentum Expected to Continue for Many Years to Come
Period | Discovery | Preclinical | Clinical | Small molecule CDMO | Including: Peptide CDMO | Including: Oligo CDMO | Total |
2015-2024 | 9.7% | 7.4% | 8.2% | 9.2% | 16.2% | 67.7% | 23.5% |
2024-2029E | 9.5% | 10.6% | 8.0% | 16.6% | 25.6% | 31.3% | 11.9% |
2029E-2034E | 10.4% | 9.1% | 8.6% | 17.6% | 18.3% | 22.7% | 13.4% |
Global Pharmaceutical R&D Outsourcing Market, 2015-2034E
USD billion 129.1 133.6
136.5 144.4 159.0
180.9
208.7
239.5
273.8
311.5
353.2
398.8
448.4
20.5 27.0 35.2 44.1
92.0 98.0 113.0
Total Discovery CRO
Preclinical CRO Clinical CRO
Small molecule CMO/CDMO
including: Peptide CDMO
including: Oligo CDMO
2015
20.5
5.4
6.7
29.0
23.5
1.0
0.0
2016
27.0
5.9
7.1
32.4
25.9
1.2
0.1
2017
35.2
6.7
7.7
34.6
28.2
1.3
0.3
2018
44.1
7.6
8.4
37.9
31.3
1.5
0.5
2019
92.0
8.5
9.1
40.6
33.8
1.7
1.0
2020
98.0
9.2
9.5
41.8
37.5
2.0
1.3
2021
113.0
10.2
10.6
50.2
42.0
2.2
1.6
2022
129.1
11.2
11.7
54.7
51.5
2.5
2.0
2023
133.6
11.7
12.2
57.7
51.9
3.0
2.3
2024
136.5
12.5
12.7
59.2
52.1
4.0
2.6
2025E
144.4
13.5
13.6
62.3
55.0
5.1
3.2
2026E
159.0
14.6
15.0
67.4
61.9
6.4
4.0
2027E
180.9
16.0
16.8
73.2
74.9
8.1
5.5
2028E
208.7
17.7
18.9
79.8
92.3
10.1
7.8
2029E
239.5
19.6
21.0
86.9
112.0
12.4
10.3
2030E
273.8
21.8
23.2
94.6
134.2
14.8
13.1
2031E
311.5
24.1
25.4
102.9
159.2
17.6
16.3
2032E
353.2
26.6
27.7
111.7
187.2
20.9
20.0
2033E
398.8
29.3
30.0
121.2
218.3
24.5
24.1
2034E
448.4
32.2
32.4
131.4
252.4
28.6
28.6
10 Source: Frost & Sullivan, September 2025.
WuXi Chemistry, Biology, and Tes ting Collaborate at Research Stage to Enhance CRDMO Business Model
Generate the Flow
by enabling discovery and research
Discovery Preclinical
Unders tand the Trends
by following science and customers
Achieve Synergy
through accelerating PCC and IND delivery
WuXi Biology
WuXi Chemistry
WuXi Testing
11 Note: PCC, Preclinical Candidate; IND, Investigational New Drug.
Attract New Cus tomers to WuXi AppTec CRDMO Platform
~70% of WuXi AppTec new customersare supported by Discovery + Preclinical in 2024
of Discovery + Preclinical 2024 new biotech customers* have public fund raising events after 2019
~35%
12
12 Notes: 1. Including Discovery and Preclinical customers. * Customers with fund raising data are from outside of China.
2. Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Enhance Cus tomer Engagement through Integrated Services
# of Customers use both Discovery & Preclinical platforms
800+
900+
1000+
2022 2023 2024
74.4%
72.4%
73.2%
Revenue% of customers
use both Discovery &
Preclinical platforms
2022
2023
2024
13 Note: Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Small Molecule Market Expansion
~42%
of active customers in market* collaborate with us since 2021
Research Chemistry Services (RCS) synthesized over 440,000+ compounds from 2024H2 to 2025H1
The application of Flow Chemistry and
Photochemistry Technologies benefits over 91% of our long-term partners
Strengthen Long Tail Strategy, Research's long-tail customers contribute over 70%* of business volume
14 Notes: 1. Internal analysis. 2. Including Discovery and Preclinical customers.
3. Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
From Undruggable Targets to Druggable
Previously Undruggable Targets (e.g. RAS)
Multi-Specific Drugs
New Modalities
PROTAC
Covalent inhibitor
Molecular glue
Allosteric inhibitor
10+
drugs approved
100+
programs in clinical development
Peptide Macrocycle
15 Source: 1. The Biology of Cancer, 2nd edition. 2. Nature, Apr 2020, 580(7803):329-338. Note: PROTAC refers to the abbreviation of Proteolysis Targeting Chimera.
Increasing Molecular Complexity
Molecular weight Synthetic steps Synthetic complexity Purification difficulty
Average molecular weight
2021
2025
Proportion of compounds with molecular weight >600 Da
2021 2025
Average synthesis steps
for long-route molecules*
2021
2025
16 Source: internal analysis.
* Long-route molecules: >5 synthetic steps.
Sophisticated Analytical Platform for Complex Synthetic Molecules
Techniques & Capabilities
Dedicated technical solution for new modalities
Specific solutions for different molecules,
covering 10+ categories, such as PROTACs, covalent inhibitors
Sophisticated tools & method development platforms
Customized analysis & purification services
in 2-4 weeks for new molecules
Instruments & Workflows
1900+ cutting-edge instruments and equipment
Comprehensive coverage of 60+ analysis items
Automated streamline workflows (1h cycle time for regular testing)
Accurate, multi-dimensional, rapid solution for complex issues
Q-TOF
GC-MSMS
LC-MSMS
ICP-MS
17 Note: PROTACs refers to the abbreviation of Proteolysis Targeting Chimeras.
Advancing Drug Discovery & Development of "Undruggable Targets"
Supporting Mirati Therapeutics on the 'undruggable' KRAS Target
Financing in the discovery & development of therapies for undruggable targets from 2022 to 2024
"WuXi AppTec has been one of our longest standing partners with whom we work closely across the chemistry, DMPK, toxicology, cancer biology and structural biology teams. Close personal relationships have formed over the years and our partnership is stronger than ever."
Total investment amount
6.58B USD
Matt Marx, Ph.D. Senior Vice Pres ident Drug Dis covery Mirati Therapeutics
2023.10
18 Source: WuXi AppTec Blog (https://mp.weixin.qq.com/s/rFvEHzVRqh_LXFQaqdjovA); internal analysis.
Total investment transactions
127
Value and Contribution of WuXi AppTec Research Chemistry Service (RCS)
Accelerating PCC Finding Contributing to Customer Success
13.7months
104*PCCs
Average time to identify a PCC after collaborating with RCS
Produced within RCS
during 2024
* Based on feedback from clients
60% 90%of small molecules deals (>$100M) come from RCS partners in past 3 years
of RCS clients who raised funds in 2024 were already partners before fundraising
19 Note: statistical data for 2022-2024.
Continue to Strengthen the Conversion from R to D
1,000+
Active clients
"R"
"D"
308
Clients with "D" opportunity
185
New clients from R to D
Understand potential requirements and provide specific solutions
Work closely between R and D teams
Ensure consistent high-quality transition from R to D stages
336
New molecules
The close collaboration between R and D teams delivers the power of CRDMO model
20 Note: data from H2 2024 to H1 2025.
Customer Growth and Retention in Research Chemistry
≥5 years
980+ clients
≥10 years
280+ clients
≥20 years
10+ clients
21
The Expansion of Biology in vitro Hit Generation & Hit Finding Platform
2010
2025
POD 810 Plate Assembler
Versatile, multi-threaded, multi-project parallel high-throughput screening
Shanghai
Key Instrument #
20+
22 Note: POD 810 Plate Assembler, for compound dilutions and assay-ready plate preparation.
Operational Sites
Shanghai, San Diego, Munich
400+
Indus try Leading Platform for Hit Finding
WuXi Biology High-throughput
Hit Finding Technologies
Track Record of Early
Discovery Capabilities
15+ years of experience
1800+ clients
1000+ targets screened
1500+ proteins produced
Integrated solution for successful hit finding with all target classes
23 Notes: HTS, High-Throughput Screening. HCS, High Content Screening. SELEX, Systematic Evolution of Ligands by Exponential Enrichment.
NMR, Nuclear Magnetic Resonance. SPR, Surface Plasmon Resonance. ASMS, Affinity Selection Mass Spectrometry. OBOC, One Bead One Compound.
Capability Building Flywheel for Oncology
~33%of active customers in market* collaborate with us since 2021
Capability
Technology
Know-how
Efficiency
Speed
Quality
Project Delivery
System
Standard
Process
2017-2024 CAGR 38%
End-to-end services and solutions to enable cancer
drug discovery
1,200+ cell lines and 4,000+
disease models
19,000+ cancer pharmacology projects since 2017
Successful IND submissions to
U.S., China and Australia
Integrated, on-line,
tumor model database
24 Notes: 1. Internal analysis. 2. Including Discovery and Preclinical customers.
Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Infectious Disease Market Expansion
21
drugs on market
>40
types of infectious agents
in vitro screening
and profiling
in vivo efficacy
clinical assay
Biology Infectious Disease Platform
~27%
of active customers in market* collaborate with us since 2021
25 Notes: 1. Internal analysis. 2. Including Discovery and Preclinical customers.
Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Biology Non-cancer in vivo Pharmacology Delivered Over 40% YoY Growth
+42%
+115% +7% +31% +98%
Metabolic Disease
Immunology & Inflammation
Non-cancer in vivo Pharmacology Revenue 25 H1 vs 24 H1
Infectious Disease
Neuroscience
26 Note: WuXi Biology data only.
In vivo Pharmacology Integration Across Therapeutic Areas
Infectious Disease ~27%
Project
Delivery
System
Standard
Process
Immunology & Inflammation
~35%
Technology
Capability
Know-how
Metabolic Disease
~33%
Efficiency
Speed
Quality
Neuroscience
~35%
27 Notes: 1. Internal analysis; data represent % of active customers in market collaborate with us since 2021. 2. Including Discovery and Preclinical customers.
3. Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Early Capability Building in Emerging Technologies
Bispecific antibody ADC
Target Protein Degradation
Stem cell Oncolytic viruses
OBOC Single-cell
DAC
Cancer vaccine
Fusion protein
Oligo
Tumor Infiltrating Lymphocyte
2015
2019
2021
2023
2014
2016
Peptide Early Discovery
2020
2022
2024
CAR-T / CGT
AAV / CGT
Covalent inhibitor
28 Note: DAC, Degrader-antibody conjugates, OBOC, One Bead One Compound.
New Modality Market Expansion
~29%of active customers in market*
collaborate with us since 2021
Targeted Protein Degradation
Oligo / Antisense
ADC / PDC / AOC
Cancer Vaccine / Oncolytic virus / Stem Cell / Exosomes
Vector Platform/ Novel Drug Delivery Vehicle
29 Notes: 1. Internal analysis. 2. Including Discovery and Preclinical customers.
Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
Nucleic Acid Therapeutics Market Expansion
Biology Revenue
+26% YOY (2024 vs 2023)
Capability and capacity
Quality and turnround time
Experience
Solution provider
Nucleic Acid Therapeutics
~26%
of active customers in market* collaborate with us since 2021
30 Notes: 1. Internal analysis. 2. Including Discovery and Preclinical customers.
Discovery represents WuXi Biology and RCS (Research Chemistry Services); Preclinical represents WuXi Testing excluding clinical & Medical Device.
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