WuXi Department moved overseas

During the market downturn, WuXi's excessive capital operation has not chang.

WuXi AppTec plans to issue no more than 743 million H shares, which will raise more than HK$6 billion at a 20% discount to today's share pri.

WuXi AppTec raised HK$5 billion in Hong Kong stock offerings in 2018, and will issue an additional 5 billion RMB in 202 WuXi Biologics has issued 4 new shares in its history, raising HK$22 billi.

With a retracement of more than 50% from the high level, WuXi PharmaTech’s H-share issuance at a low level has led to endless misappropriation of money, causing resentment in the secondary mark.

There is an important clue hidden behind the fog of capital, and the focus of WuXi has been fully shifted overse.

WuXi Biologics Income Distribution

WuXi Biologics Capacity Distribution

01China's local business is declining

70% of the funds raised by WuXi AppTec will be used for overseas business and expansion of global production capacity, of which 35% will be used for overseas business in North America, 35% will be used for overseas business in Asia and other regions, and 15% will be used to repay bank loans and For other borrowings, the remaining amount will be used to supplement general working capit.

Not a penny was spent on domestic capacity expansi.

When WuXi Biologics CEO Chen Zhisheng was asked about the important milestones this year, there was only one answer - the official production and GMP release of the New Jersey and Dundalk bases in Irela.

There are early signs of the tu.

The growth rate of WuXi AppTec's overseas revenue is 25% in 2020 and 38% in 2021, which shows that overseas business is basically no longer affected by the epidem.

The proportion of WuXi Pharma’s domestic revenue in Germany has been stable at around 25%, and this year’s Q1 plummeted to 1

The trend of WuXi Biologics' revenue shift to overseas is more obvious, and the proportion of domestic revenue is nearly halv.

Domestic business in China is in decli.

The growth drivers of CXO come from two aspects: the increase in the penetration rate of R&D outsourcing by multinational pharmaceutical companies and the growing demand from domestic small and medium-sized biotech compani.

Domestic biotechnology is experiencing local congestion, eliminating bubbles and reducing production capacity, and eliminating homogeneous pipelines and Me-too produc.

Domestic innovative drugs have temporarily encountered bottlenecks, and the total volume is too small to support the further high growth of huge revenue, so WuXi has fully turned to overse.

In 2021, the global drug sales top 100, the minimum threshold is 753 billion US dollars, and no Chinese pharmaceutical companies are list.

In 2021, the top 20 global pharmaceutical companies in terms of revenue will have a minimum threshold of US$181 billion, which is 3 times that of Fosun Pharma and 6 times that of Hengrui Phar.

The so-called view that domestic innovative drugs are over-saturated and oversaturated is short-sight.

In fact, it is still in the infant stage, and there is huge room for grow.

However, the WuXi department couldn't wa.

WuXi’s domestic revenue in 2021 will be 286 billion yu.

The domestic revenue of other major CXOs was 275 billion yuan from Kanglong Chemical, 264 billion yuan for Zhaoyan New Drug, 679 million yuan for Proton, 641 million yuan for Asymchem, and 360 million yuan for Yaoshi Technology, totaling 219 billion yuan ($627 millio.

Even if all the medicine is given to Mingxian, it is not enough to e.

In 2021, the revenue of WuXi Department is 145 billion US dollars, ranking 7th in the global CXO, while the top 6 overseas giants have a combined revenue of 55 billion US dollars, even if they get a small piece of the cake, they can eat enou.

The source of income is concentrated to the he.

WuXi Biologics: The proportion of revenue contributed by the five major customers will be 30% in 2020 and 36% in 202 The proportion of revenue contributed by the top 10 customers will be 41% in 2020 and 47% in 202

WuXi AppTec: The proportion of revenue contributed by the world's top 20 pharmaceutical companies will be 29% in 2021 and 45% in Q1 in 202

In 2022 global CRO rankings, WuXi ranked seventh according to Medicine Cube

WuXi AppTec's Q1 revenue distribution this year

02Reducethe risk brought by a single region

The storage and transportation conditions of traditional small molecule drugs are easy to meet, and transnational and transcontinental business can be completed conveniently and quickly, but the stability of biopharmaceuticals and vaccines is po.

Humidity, visibility, pH, pressure and failure, long-distance transportation costs and potential safety hazards are hi.

The domestic pharmaceutical logistics cost accounts for 12% of the total cost of sales, which is 4 times that of the United Stat.

According to ThermoKing statistics, about 30% of medical waste is directly produced by improper logistics management, and 20% of health care products are damaged due to the rupture of the pharmaceutical cold cha.

Most cell gene therapy (CGT) products need to be stored at -80° to -180°C, otherwise there is a risk of degradati.

Taking autologous CAR-T products as an example, after ordinary immune T cells are extracted and isolated from patients in a qualified hospital, they are transported in the cold chain (2-8°C) to the preparation institution, and then T cells are treated with genetic engineering technolo.

be engineered to form CAR-T cel.

After a strict production and quality inspection process, CAR-T cells are transported to the hospital by cryogenic transportation (below -150°C) and returned to the patie.

It is logical for CDMO to go overseas to build factories and provide the nearest supply chain for major custome.

China has formulated the "Regulations on the Administration of Health and Quarantine of Entry-Exit Special Items" to manage and supervise entry-exit biological products, which specifically refer to biologically active preparations such as vaccines, antitoxins, and diagnostic reagents used in human medicine and life science-related fiel.

For the cell gene therapy CDMO industry, both plasmids and viral vectors can be exported, but the supervision of living cells is strict, and it is relatively difficult to transport across borde.

There are more than ten items of materials required for the entry-exit approval of special ite.

The approval process is complicated and the approval time is long (about one month), which will greatly increase the export transportation co.

Due to regulatory factors, domestic CGT CDMOs can only expand their production capacity overseas if they want to open up overseas busine.

There are deeper reasons for WuXi’s departure overseas, which coincides with the direction of changes in the industrial chain and supply chain in the Yangtze River Del.

Both WuXi companies have new development bases in Singapo.

In March of this year, Chen Zhisheng said in an interview with English media Pharma's Almanac, "In the context of the new crown epidemic, our diversified business distribution and capacity allocation are more meaningful, which can reduce the risks brought by a single regi.

"

WuXi Biologics has 8 production bases in the Yangtze River Delta, including 2 in Shangh.

It has a 200,000-square-foot factory in the Waigaoqiao Free Trade Zone, providing complete one-stop biological drug development and production servic.

It has cell culture capabilities officially certified by the European Union and can be used for clinical GMP stock solution production and supp.

With a global innovation base of 150,000 square meters in Fengxian District, it can provide one-stop service for pilot-scale and clinical-scale GMP production capaci.

On the night of the closure of Pudong, Chen Zhisheng asked hundreds of employees to return to the company immediately to ensure that the project would not be interrupted and that the reserves of materials were very sufficie.

In early 4th, it is expected that if the closure and control are resolved within a week or two, there will not be too many proble.

Due to the epidemic, the.


Department of Commerce's Unverified List (UVL) on-site inspection was postponed, and the stone has not yet land.

Because of the difficulty of production, multinational companies generally find two factories for commercial production of biological drugs to reduce ris.

Once the supply of a biopharmaceutical factory is cut off, it will not be able to restore the supply for 8, 9 months, or even a ye.

WuXi Biologics launched a global dual-plant strategy in 2018 to diversify industrial chain and supply chain risks, ensure that the same materials can be purchased at multiple bases around the world, and provide customers with the same production servic.

3 production bas.

The New Jersey base has a construction area of ​​about 66,000 square feet and is mainly engaged in clinical and commercial producti.

The Irish base in Dundalk covers an area of ​​26 hectares and provides GMP commercial production of biological dru.

At this very moment, it is very important for the two bases to put into GMP producti.

WuXi AppTec's production capacity is concentrated in the Yangtze River Delta, among which Shanghai WuXi AppTec New Drug Development (small molecule drug discovery and research services), Kangde Hongyi (medical clinical), WuXi Jinshi (clinical research and SMO services), Shanghai Hequan Pharmaceutical Industry (CDMO service) and WuXi Gene therapy (gene and cell therapy) are both located in Shangh.

On April 25, WuXi PharmaTech said in its first quarterly report that if the Shanghai Omicron epidemic is effectively controlled by the end of April, the company expects to achieve a high-speed growth of 63-65% in Q2 2022, and will achieve revenue growth for the whole year of 202 65-70% target with confiden.

It's almost the end of M.

The purpose of this fixed increase is to provide global customers with a reliable supply chain, and to build new production capacity in the United States, Europe and Singapo.

WuXi AppTec currently has a construction project of 75 billion yu.

It is building a preparation and API production base in Delaware, the United Stat.

It is expected to be put into operation in 202 It will become the second base built by Hequan Pharmaceutical in the United States, and it is also a global ba.

The eighth R&D and production base of the scope layo.

Completed the acquisition of Bristol-Myers Squibb's GMP preparation production base in Kuwait, Switzerland, enabling large-scale commercial production of capsules and tablets, becoming the first production base of Hequan Pharmaceuticals in Euro.

WuXi Pharma's new high-end testing laboratory expanded at the Philadelphia base in the United States has been officially put into operati.

Completed the acquisition of OXGENE, a British gene therapy technology company, as the first R&D and production base of WuXiQ in Euro.

Hong Kong stock market's strange letter is revealed, WuXi Biologics' 5 highest-paid individuals are hidden in blind boxes

What is puzzling is that WuXi is a Chinese company and an American compa.

The top six shareholders of WuXi AppTec are foreign legal persons, and half of the 20 executives are American nationa.

The actual controllers, Li Ge and Zhao Ning, are Americans, while Liu Xiaozhong and Zhang Zhaohui have permanent residency in Singapo.

In 2021, Li Ge will receive a total pre-tax remuneration of 27638 million yuan from WuXi AppTec, and the remuneration from WuXi Biologics is shown as a horizontal b.

In line with its capital fog >

WuXi blind b.