WuXi XDC Cayman Inc reported first-half 2026 adjusted net profit of more than RMB 1 billion for the first time in a six-month period, as consolidated revenue climbed 37% year-over-year to RMB 3.7 billion. The bioconjugate contract development and manufacturing organization’s shares surged 14.83% to HKD 78.35 following the earnings call, closing near the upper end of its 52-week range of HKD 43.50 to HKD 85.50.
Consolidated gross profit reached RMB 1.4 billion, with gross margins expanding to 37% from 36.1% a year earlier. Standalone revenue, excluding BioDLink, rose 36% on a constant-currency basis to RMB 3.6 billion, while gross margin improved to 37.6% from 36%. Adjusted net margin remained stable at approximately 27.8%.
The company’s total backlog, including milestone and royalty incomes, reached about $2.2 billion, up 62% from the end of June 2025. Commercial backlog recorded its first milestone at about $120 million. WuXi XDC also signed a record 51 integrated chemistry, manufacturing, and conjugation (ICMC) projects in the first half of 2026, with management targeting at least 80 such signings for the full year, up from 70 in 2025.
Operational metrics reflected strong momentum, with 27 investigational new drug submissions in the first half, bringing the cumulative total to over 160 over the past five to six years. The company completed more than 21 process performance qualification projects, with roughly half originating from overseas clients, including nine from multinational corporations. Total headcount increased to around 3,600, including nearly 1,000 new hires and approximately 500 from the March 2026 acquisition of BioDLink.
WuXi XDC expects full-year 2026 consolidated revenue to grow about 30% on a constant-currency basis, with standalone revenue projected to rise at least 35%. Gross margins are expected to remain within a 36% to 37% range. Long-term targets include generating 20% of revenue from newer XDC modalities and another 20% from commercial manufacturing by 2030, with compounded annual growth projected between 30% and 35% over the next several years.
Chief Executive Officer Jimmy Li highlighted that about three-quarters of newly signed ICMC projects involved newer modalities, including bispecific and dual-payload antibody-drug conjugates. He also noted increased participation from technology companies in the bioconjugate space, leveraging AI for drug design. Chief Financial Officer Michael emphasized the company’s ability to maintain consolidated gross margins at 37% despite integrating the still loss-making BioDLink unit.
