On August 24, WUXI XDC (02268) released its interim results for the first half of 2026. As a frontrunner in the ADC CRDMO niche, the company delivered a results sheet of considerable substance. Looking at the core figures first: during the reporting period, WUXI XDC achieved revenue of RMB 3.701 billion, up 37% year-on-year at actual exchange rates (AER) and 41.5% at constant exchange rates (CER). Gross profit reached RMB 1.371 billion, up 40.6%, with the gross margin improving further to 37.0% from 36.1% in the same period of 2025. Adjusted net profit attributable to the parent company rose to RMB 1.027 billion, an increase of 37.4%, and the adjusted net profit margin climbed to 27.8%.
The 'Triple Engine' Driving Sustained Growth: Client Expansion, Efficiency Gains, and M&A Synergies
Breaking down WUXI XDC's growth logic for the first half can be viewed from three levels. The first level is the continued expansion of clients and projects. As of June 30, the company (including Orient Pharma) had over 810 clients, with 15 of the world's top 20 multinational pharmaceutical companies establishing cooperation, consistently contributing 34% of revenue. The total number of iCMC projects reached 328, with 51 newly signed in the first half, a record high, indicating sustained robust demand in front-end R&D. Even more noteworthy is the order backlog: as of the end of June, the total amount including potential milestone payments was approximately USD 2.2 billion, up about 62.2% year-on-year, providing high visibility for future revenue.
The second level is the continuous improvement in profitability. Alongside capacity expansion, the consolidated gross margin increased from 36.1% to 37.0%. The core logic is: as capacity under construction gradually comes online, existing production lines maintain high utilization rates, operational efficiency improves further, and higher value-added businesses continue to gain momentum, driving sustained profitability improvements.
The third level is the synergy between organic growth and acquisitions. In March 2026, WUXI XDC completed the controlling acquisition of Orient Pharma, which was consolidated into the financial statements starting April. During the reporting period, the group (including Orient Pharma) achieved revenue of RMB 3.701 billion, a 41.5% increase on a CER basis. In the long run, the mature production lines for antibodies, ADC drug substances, and formulations brought by the Orient Pharma acquisition, along with complementary client structures, will directly expand WUXI XDC's overall market coverage and project delivery scale, further consolidating its leading industry position. These three levels stack and reinforce each other: client expansion and smooth progression into later stages drive project flow and maintain high capacity utilization, which in turn lifts gross margins. Acquisitions rapidly accelerate capacity expansion on the external front. This synergistic model of organic growth and external M&A has been practically validated, and with the order backlog and PPQ pipeline, the path to continued growth is clearly sustainable.
CRDMO Business Model Gains Traction as the Company Enters a Critical Transition Phase
In the first half of 2026, several milestones highlighted the solid advantages of the CRDMO business model. Starting with the R-end: the company focused on monetizing its technology platforms. The WuXiTecan-2 linker-payload technology platform completed two out-licensing deals within six months: in February, a collaboration with Earendil Labs worth up to USD 885 million, and in August, another licensing agreement with a global innovative biotech. Previously, WUXI XDC's technology platforms served more as 'enabling tools' to help clients accelerate projects. These two licensing deals mean the technology platform itself has once again proven its commercial value, reflecting market recognition of its technical merit and establishing a diversified revenue structure of 'service fees + licensing fees + milestones + sales royalties.'
The powerful enabling advantages of the 'D' end have also come to the fore. Over the past year, global MNCs have launched a wave of intensive M&A in the conjugate drug space: Novartis acquiring Myricx Bio (NMTi payload platform) for up to USD 1.5 billion, Johnson & Johnson acquiring Firefly Bio (DAC protein degradation conjugate platform) for USD 1 billion, Gilead acquiring Tubulis (next-generation ADC) for approximately USD 5 billion in total consideration, Lilly acquiring CrossBridge Bio (dual-payload ADC) for USD 300 million, and Merck acquiring Cidara Therapeutics (DFC conjugate drug platform) for USD 9.2 billion. These five deals span different clients and technology tracks, with a common thread of rising value for innovative assets. As a key partner connecting scientific innovation with industrialization, WUXI XDC helps clients shorten development cycles, enhance asset quality, and boost market attractiveness through its integrated CRDMO capabilities. For innovative drug developers, the 'D' end is not just an accelerator for R&D but a significant amplifier for the value growth of innovative assets.
Meanwhile, the 'M' end is entering a new phase of globalized operations. The BCM3 facility in Singapore has achieved GMP release, and DP4 is set for GMP release by the end of August, marking the official commissioning of the first overseas production base and the transition of the 'dual supply chain' strategy from planning to reality. With the continued upgrade of global capacity layouts and quality systems, WUXI XDC is steadily enhancing its ability to serve global clients in late-stage clinical and commercial projects. The D end creates value, the M end captures it, and the synergy between the two forms the core competitive advantage of the company's CRDMO model.
Looking back at WUXI XDC's trajectory, the first five years were about 'high growth, market share gains, and platform building,' using one-stop services and efficient execution to capture market share and establish a client base and technical capabilities. Now, the company is entering a new phase of 'commercialization realization, technology monetization, and global expansion,' converting the platform momentum accumulated in the early stages into sustainable cash flow and profit growth. The simultaneous breakthroughs across the R, D, and M ends in the first half of 2026 epitomize this transition: from technology platform value monetization, to D-end empowerment for client asset appreciation, to the full readiness of M-end global capacity and commercial compliance systems. The company is accelerating its continuous leap from 'capability accumulation' to 'value release.' For a track leader still in the early-to-mid stages of development, achieving multi-dimensional breakthroughs in the same period is no small feat and further validates the growth resilience of its integrated CRDMO business model across industry cycles.
From 21 PPQ Projects to a Global Top CMO: Commercialization Payoff on the Horizon
If the 'triple engine' answers where growth comes from, and the R-D-M breakthroughs outline the company's critical juncture, the next question is: where do these efforts ultimately lead? The answer lies in the PPQ projects and industry fundamentals. As of June 30, 2026, the group had cumulatively secured 21 PPQ projects and 2 commercial projects. PPQ is a key process validation milestone supporting BLA submissions—completing PPQ confirms the process and validates that production lines are ready for commercial supply, laying the groundwork for subsequent regulatory filings and reviews, and is expected to drive gradual volume growth on the M end. This project pipeline is the core asset for the company's evolution from a leading global ADC CRDMO to a mature CMO. The 21 PPQ projects correspond to a client pipeline set to enter commercialization over the next 1-2 years, while the 2 commercial projects are already in actual production and contributing ongoing commercial revenue. Together, they form a clear path for the M end from 'expected accumulation' to 'performance realization.'
For CDMOs, the shift from clinical to commercial phases means order volumes leap from 'kilogram scale' to 'ton scale,' with revenue magnitudes that are entirely incomparable. This is the core of market optimism about WUXI XDC's prospects. On the other hand, according to Frost & Sullivan data, the global ADC market has grown from approximately USD 2.8 billion in 2019 to around USD 18.7 billion in 2025, and is projected to reach approximately USD 115.1 billion by 2032, with a CAGR of about 30.6%. In the ADC/XDC track, one of the most certain biomedical sectors for the next decade, WUXI XDC holds a favorable position. Therefore, from a company perspective, the continuous increase in commercial projects, accelerated global capacity deployment, and the strengthening of the CRDMO model's advantages, combined with the industry-level acceleration toward maturity and scale in the ADC/XDC track, jointly underpin the company's future growth. Facing a hundred-billion-dollar market opportunity, the company continues to benefit from the dual growth drivers of industry expansion and market share gains. This is perhaps the confidence behind WUXI XDC's potential to join the global top-tier CMOs in the coming years.
Conclusion
WUXI XDC's first-half 2026 results validate the effectiveness of three growth curves: continued client and project expansion drives revenue growth, improved capacity utilization boosts margins, and acquisitions and technology licensing open new growth avenues. Looking at the timeline for PPQ projects and BLA filings, true commercial scaling is just beginning. The company's 'high-growth' first half has been proven, and the 'high-quality development' second half is now underway.