Among them, WuXi AppTec is the shining star in this feast. In the first half of 2025, its operating revenue soared to 20.8 billion yuan, a year-on-year increase of 20.64%. The net profit attributable to the parent company skyrocketed to 8.561 billion yuan, a year-on-year increase of 101.92%. After adjustment, the non IFRS net profit attributable to the parent company was also 6.31 billion yuan, a year-on-year increase of 44.4%. Not only that, WuXi AppTec's on hand order amount reached 56.69 billion yuan, a year-on-year increase of 37.2%. This data is like a strong backing, providing a solid guarantee for its future development.

 

WuXi AppTec's excellent performance is partly due to the company's continuous focus on and strengthening of the CRDMO business model, which has led to a sustained increase in revenue; On the other hand, continuous optimization of production processes and operational efficiency, as well as the increase in production capacity and efficiency brought about by the growth of clinical and commercial projects, have also enhanced overall profitability. In addition, the proceeds from the sale of some shares of WuXi XDC Cayman Inc., a joint venture held by the company, also contributed to the growth of profits. ​

 

Apart from Yaomingkangde, other CRO companies have also reported good news. Kanglong Chemical expects to achieve a year-on-year revenue growth of 13% -16% in the first half of 2025, and an adjusted non IFRS attributable net profit growth of 6% -11%. Zhaoyan New Drug is expected to achieve a turnaround from losses to profits, with an estimated net profit attributable between 50.3243 million yuan and 75.4865 million yuan from January to June. Boteng Group has also performed well, with an expected operating revenue of 1.55 billion yuan to 1.62 billion yuan in the first half of 2025, a year-on-year increase of 15% to 20%. The net profit attributable to the parent company has successfully turned around and reached 0 to 30 million yuan. ​

 

From a macro perspective, the entire CRO industry is ushering in a favorable situation. The financing scale of the primary market for innovative drugs has increased by 45% year-on-year since 2025 (reaching 32 billion yuan), with companies such as BeiGene and Hengrui Pharmaceutical financing exceeding 5 billion yuan. The recovery of financing is like a source of fresh water, following the transmission chain of "financing → research and development → outsourcing", driving the growth of CRO orders.

 

The outbreak of BD transactions is also an important driving force for the prosperity of the industry. In the first half of 2025, there will be over 80 innovative drug BD transactions, with an average down payment of 850 million yuan (compared to only 420 million yuan in the same period of 2024). This not only leads to a surge in cash flow for biotech companies, but also enables them to sign a clinical CRO contract worth 150 million yuan with Ruizhi Pharmaceutical in the same month after receiving a payment of 1.2 billion yuan through BD, accelerating project progress; It also restructured the market's expectations for the "pipeline value", increased the market value of innovative pharmaceutical companies, and fed back the order volume and premium ability of CRO companies. ​

 

Furthermore, in the face of the sudden and widespread "good results" in the CRO industry, can the recovery be sustained? Some industry insiders said that they prefer real recovery to short-term foam. It believes that on the one hand, foreign pharmaceutical innovation activities are returning to normal, bringing opportunities to CRO enterprises; On the other hand, with the continuous improvement of the efficiency of innovative drug review in China and the record high number of approved innovative drugs, the domestic demand side has also brought new growth momentum to CRO enterprises. Data shows that in the first half of this year, 43 innovative drugs were approved for market in China, a year-on-year increase of 59%.

 

Looking ahead, although the CRO industry has a bright future, it also faces challenges. R&D risks always exist. If Biotech's Phase III clinical trial fails, its outsourced CRO projects will be directly affected, resulting in delayed revenue recognition and bad debt risks. The development of emerging modalities such as gene therapy and PROTAC is difficult, and CROs need to continue investing in technological research and development. However, with the overall improvement of the industry, CRO enterprises continue to enhance their technological strength and service level, keep up with the trend of innovative drug research and development, and may be able to ride the waves and continue to write brilliance in this blue ocean full of opportunities and challenges.