WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least 45% YoY and net profit to grow by more than 38% YoY. Notably, the Company expected adjusted net profit before interest income and expenses to rise by more than 45% YoY and by over 65% YoY in 2025 if excluding the impact of foreign exchange fluctuations. In 2025, WuXi XDC signed a record-high 70 new integrated projects, up by 32% YoY. PPQ projects surged by 125% YoY to reach 18, indicating strong potential for commercial manufacturing. To address growing client demand, WuXi XDC announced a cash offer to acquire at least 60% interests in BioDlink (东曜药业,1875 HK, NR), marking a critical step in further strengthening its manufacturing capacity.
Global demand for XDC drug R&D and manufacturing continues to grow rapidly. In 2025, WuXi XDC signed a record-high 70 new integrated projects, up 32% YoY. Among these 70 projects, clients from China and the US were the primary sources. Additionally, 22 of these projects were transferred from external parties, highlighting WuXi XDC’s increasing client trust in the global XDC CDMO industry. Furthermore, novel modalities XDC drugs contributed significantly among the 70 newly signed projects, with bispecific ADCs accounted for ~20%, dual-payload ADCs for ~5%, and other types of XDCs for ~17%, demonstrating WuXi XDC’s active collaboration with clients in cutting-edge areas of conjugated drug R&Ds. Moreover, PPQ-stage contracts in 2025 increased by 125% YoY to 18, signaling strong growth potential in commercial-stage business. Based on the strong “D-end” enabling capabilities and encouraging commercial business trends, mgmt. of WuXi XDC expects that, by 2030, 20% of the Company’s revenue will come from novel XDC projects and another 20% from commercial-stage projects.
Acquisition of BioDlink set to strengthen production capacity. WuXi XDC plans to acquire at least 60% interests in BioDlink through a cash tender offer at HK$4.00 per share, representing a 99% premium over the last closing price of BioDlink on 24 Dec 2025. BioDlink is a leading domestic ADC CDMO service provider with CDMO-related revenue of RMB207mn in 2024. Beyond expanding WuXi XDC’s client base, the acquisition will rapidly enhance the Company’s drug production capacity to meet strong demand in the moment, particularly for ADC DS and DP, which are currently in short supply. BioDlink operates two mAb facilities with capacities of 500–2,000L/batch, three DS facilities capable of producing over 800kg ADC DS annually, and three DP facilities with an annual capacity exceeding 8mn vials (for comparison, WuXi XDC’s DP3 facility has an annual capacity of 8 mn vials).
Maintain BUY. We raise our target price to HK$88.0 to reflect the enhanced global competitiveness and positive demand outlook for WuXi XDC. We forecast WuXi XDC’s revenue to grow by 45.7%/ 36.6%/ 31.7% YoY and adjusted net income to increase by 34.9%/ 38.4%/ 32.9% YoY in 2025E/ 26E/ 27E, respectively. As the tender offer for BioDlink is still ongoing, we have not yet incorporated any financial impacts from consolidating BioDlink.