On January 14, 2026, WUXI XDC (02268) issued a positive profit alert for its 2025 fiscal year and simultaneously disclosed its launch of a voluntary conditional cash offer to acquire TOT Biopharm. TOT Biopharm had previously suspended trading of its shares at 9:00 a.m. on December 29, 2025, pending the release of an announcement concerning the cash offer. The profit alert highlights WUXI XDC's outstanding performance as an industry leader: revenue for 2025 increased by over 45% year-on-year; gross profit surged by more than 70%; and adjusted net profit (excluding interest income and expense) grew by over 45%, with this growth rate expected to exceed 65% after excluding the impact of exchange rate fluctuations.
As a frontrunner in the ADC CRDMO sector, WUXI XDC is currently experiencing robust business growth, where organic development and strategic acquisitions complement each other effectively. Through this acquisition of TOT Biopharm, WUXI XDC aims to seize an opportune moment to expand and secure additional operational capacity in China, thereby strengthening its overall production capabilities to better empower biotech companies and provide value-added services. Furthermore, this controlling stake acquisition is expected to further enrich WUXI XDC's project portfolio and broaden its client base, solidifying its leadership position in the ADC CDMO field.
"Exchanging capital for time" has become a strategy to break through capacity constraints in the CDMO industry. With the continuous expansion of clinical pipelines for bioconjugate drugs, the industry has reached a commercial inflection point, making capacity shortages increasingly prominent. According to public data, as of the end of December 2025, 21 ADC drugs had been approved globally, while novel bioconjugates like AOCs, RDCs, and PDCs are rapidly emerging, with late-stage clinical pipelines becoming increasingly rich, establishing themselves as new growth drivers in the biopharmaceutical sector. Against the backdrop of accelerating global commercialization in the bioconjugate industry, capacity shortages have become a core constraint on CDMO development—the rapid expansion of clinical pipelines and the concentrated release of commercial demand have made "capacity delivery capability" a critical competitive barrier for companies and a key metric for capital markets to assess the growth performance of CDMO firms.
For leading CDMO enterprises, the chosen path to overcome capacity bottlenecks directly determines their market influence: building new production lines involves multiple stages such as site selection, construction, and certification, typically taking 3-5 years, which struggles to keep pace with the rapid growth of commercial demand in the bioconjugate drug arena. WUXI XDC's proactive approach of acquiring mature production facilities, compliant systems, and existing capacity reserves represents a more capital-efficient method to seize market opportunities, positioning it as an optimal solution in the bioconjugate CDMO landscape. The acquisition of TOT Biopharm is precisely based on this industry logic and capital efficiency consideration, aiming to achieve rapid capacity enhancement through external integration and inject certainty into earnings growth.
This move serves as a valuable enhancement, solidifying the company's technological platform and talent foundation. WUXI XDC has demonstrated its R&D prowess through advanced conjugation technologies, payload-linker technologies, and extensive experience in bioconjugate drug development, successively launching platforms such as WuXiDARx™ conjugation technology, dual-payload conjugation technology, X-LinC linker technology, and the WuXiTecan-1 and WuXiTecan-2 payload-linker technologies. To address the diverse order requirements and complex R&D needs of global clients, WUXI XDC has consistently employed a dual-drive strategy of "in-house R&D + external collaboration" to build an integrated technology platform, simultaneously enriching its technology reserves and enhancing its front-end R&D capabilities, thereby consolidating its leading position in technology development.
Talent is a core production factor in the bioconjugate CDMO industry, yet the contradiction between the industry's rapid development and the insufficient supply of specialized professionals has become increasingly pronounced, emerging as a key factor restricting industry growth. WUXI XDC had already strategically planned for talent development; by the end of 2025, its team size had surpassed 2,600 people. The expansion of this specialized team creates an agglomeration effect, providing sustained talent support for the company's long-term development.
Riding the wave of industry growth, the company is building a global capacity matrix. According to the医药魔方NextPhima database, as of December 31, 2025, the total value of out-licensing deals for Chinese innovative drugs reached $135.655 billion for the full year, with upfront payments totaling $7 billion across 157 transactions, significantly surpassing the $51.9 billion and 94 deals recorded for the full year of 2024. Out-licensing of Chinese innovative drugs has exploded, with upfront payments and total deal values repeatedly hitting new highs. ADC, as a core segment of bioconjugate drugs, has become a focal point for global capital competition. WUXI XDC's performance in this segment is particularly outstanding, with revenue sustaining growth since its listing, fully highlighting the growth potential of the bioconjugate CDMO赛道 and the company's core competitiveness.
With sustained business growth, capacity expansion has naturally become the "strategic cornerstone" supporting high growth rates. As of the end of December 2025, WUXI XDC served over 630 global collaborative clients, with the total number of iCMC projects reaching 252. Concurrently, the company held 18 PPQ projects and 1 commercial project. This series of figures fully demonstrates WUXI XDC's excellent performance in market expansion and production capability, also reflecting strong market demand for its capacity. The current industry capacity shortage is not merely a quantitative deficit but a structural shortage of "high-quality, integrated" capacity: on one hand, hundreds of ADC drugs globally are in active clinical stages, and the surge in R&D pipelines creates rigid demand for commercial-scale capacity; on the other hand, the complex manufacturing processes, high industry barriers, and lengthy supply chains for bioconjugate drugs further exacerbate the capacity gap.
Against this backdrop, WUXI XDC has already established capacity footprints in Wuxi, Jiangyin, and Hefei in China, as well as in Singapore. This global capacity layout not only precisely meets the localized production needs of global clients but also enhances operational efficiency through coordinated capacity allocation, consolidating the company's leading position in the bioconjugate CDMO field and allowing it to fully capitalize on the industry's upward trend.
The pace of capacity expansion continues. Based on this, and given WUXI XDC's consistently steady rhythm, the company is expected to continue proactively yet prudently advancing its overseas capacity expansion strategy, further solidifying its leading position in the global bioconjugate drug CDMO sector. In September 2025, WUXI XDC successfully completed a $350 million refinancing, bolstered by its strong performance and solid industry reputation; combined with a previously secured $200 million credit facility and accumulated operational funds, the company has built a substantial capital pool, laying a solid financial foundation for its global capacity expansion strategy. Leveraging strong financial reserves and mature expansion experience, WUXI XDC will continue its "proactive yet prudent" approach to overseas capacity expansion, currently evaluating opportunities worldwide to optimize its global production network layout. This move will not only enable localized capacity delivery but also further deepen the company's market penetration in the global bioconjugate drug CDMO sector, reinforcing its industry leadership.
In conclusion, WUXI XDC's accelerated push for capacity layout is a microcosm of the rapid development of the ADC and broader bioconjugate drug industry, propelling the CDMO sector into a golden period of growth. According to Frost & Sullivan statistics, the global ADC drug market size was approximately $17.2 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 30.6% from 2023 to 2032, projecting the market to exceed $115.1 billion by 2032; the global ADC outsourcing services market is also showing strong growth, expected to reach $11 billion by 2030, with a CAGR of 28.4% from 2022 to 2030. The high growth rates in both segments present vast growth space for CDMO enterprises. Capacity shortage is a阶段性挑战 under the high景气度 of the bioconjugate drug CDMO industry and is difficult to resolve completely in the short term; however, from a medium- to long-term perspective, as leading companies gradually release new capacity and industry concentration increases, the supply-demand imbalance for capacity is expected to gradually ease. With its accurate judgment of industry trends, WUXI XDC, through a combined strategy of "acquisition + expansion," has抢先 completed strategic capacity positioning. This not only places it favorably in the current capacity race but also positions it to potentially dominate the future competitive landscape of the bioconjugate drug CDMO industry, leveraging comprehensive advantages in capacity scale, technological barriers, and global布局.
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