China Healthcare: Expert call takeaways: Biologics CDMO sector trends

Research evidence excerpt

China Healthcare: Expert call takeaways: Biologics CDMO sector trends

Global Research

24 June 2026ab

China Healthcare Equities

ChinaExpert call takeaways: Biologics CDMO sector

trends Healthcare

Chen Chen, PhD

Analyst

chen-zb.chen@ubs.com

Overall order volume recovering, with divergent pricing among subsectors +86-10-5832 8201

On 23 June, we hosted a biologics CDMO expert to discuss the latest developments in Michelle Zhu

the industry. As per the expert, since H224, industry order volume has sequentially Analyst

recovered, with marginal improvement in global biopharma funding and downstream S1460522090003

destocking approaching completion. Subsectors have diverged notably in pricing terms. michelle.zhu@ubs.com

Pricing and profitability in mature monoclonal antibody (mAb) subsectors have remained +86-21-3866 8838

pressured due to overcapacity, medical insurance cost control and GPO-driven price- Judy Xie

reduction pressure. In contrast, complex modalities (eg, bispecifics, multi-specifics, Associate

ADCs) feature higher technological barriers and have emerged as the core growth S1460125100001

drivers of the industry. The ADC (antibody-drug conjugate) and TCE (T-cell engager) judy.xie@ubs.com

sectors are in a pricing rebound and generally in a seller’s market. +86-105-832 8006

Anita Wei

Supply-demand dynamics diverging, as more orders move to leading firms Analyst

The expert highlighted significant structural divergence in the supply-demand dynamics anita.wei@ubs.com

+852-2971 7459of global biologics CDMOs. The supply side has seen the launch and ramp of large

amounts of new capacities, whereas resources are concentrated toward top companies

on the demand side. Leading CDMOs have strong order books, with demand in some

cases exceeding capacity.