WuXi XDC Cayman Inc

WuXi XDC Cayman Inc reported a 37% revenue increase to RMB3.7 billion for the first half of 2026, with adjusted net profit exceeding RMB1 billion for the first time. The company's service backlog grew over 50% to nearly $2 billion, and total backlog including milestones reached approximately $2.2 billion, including $150 million in royalty and milestone income and $120 million in commercial backlog. CEO Li Jincai noted that the company signed a record 51 ICMCs in the first half, with about 75% from novel modalities, and maintained full-year guidance of at least 35% standalone growth. The Singapore site transitioned to operation, and the BioDlink acquisition integration progressed, though it is currently loss-making. Management declined to raise guidance despite strong performance, citing high capacity utilization and potential margin pressure.

The pharmaceutical sector rallied strongly during trading on the 6th, with weight-loss drug and innovative drug concepts standing out. Shouyao Holdings and Gan & Lee Pharmaceuticals were among multiple stocks that hit their daily limit up. As of press time, Shouyao Holdings surged by the 20 percent daily limit, Hotgen Biotech rose about 14 percent, Mabwell Bioscience, InventisBio, and Shanghai Yizhong Pharmaceutical gained over 10 percent, Gan & Lee Pharmaceuticals, Huahai Pharmaceutical, and Menovo Pharmaceutical also hit their daily limit up, BeiGene and Pharmaron climbed over 7 percent, and Hengrui Medicine advanced more than 5 percent. In the Hong Kong market, Duality Biologics, InnoCare Pharma, and Sino Biopharmaceutical rose over 10 percent, while WuXi XDC and Pharmaron gained more than 5 percent. On the news front, the National Medical Products Administration is soliciting public comments on optimizing the review and approval of cell and gene therapy drugs, encouraging clinically value-oriented R&D innovation, focusing on key areas such as malignant tumors and rare diseases, and placing eligible drugs into a 30-day review and approval pathway. Meanwhile, the overseas expansion of innovative drugs is accelerating. Since 2026, the total value of China's innovative drug license-out deals has reached 94.3 billion US dollars, up 81 percent year-on-year, with upfront payments reaching 5.5 billion US dollars, up 124 percent year-on-year, reflecting growing overseas recognition of China's innovative drug pipeline. CICC noted that leading innovative drug companies are shifting from the R&D investment phase into a positive cycle of commercial scale-up and overseas licensing revenue realization.