China CDMO initiation: Complex molecules to drive the next decade of growth

研报英文原文证据摘录

China CDMO initiation: Complex molecules to drive the next decade of growth

14 July 2026

Initiation

China CDMO

China CDMO initiation: Complex molecules to drive the next

decade of growth

We initiate coverage on China CDMOs (Contract Development and Manufacturing Rebecca Liang, Ph.D.

+852 2123 2656 Organization) with a positive sector view.

rebecca.liang@bernsteinsg.com

New drug modalities will drive CDMO growth. While small molecules and monoclonal

Ellie Li antibodies remain the largest pharmaceutical markets, the fastest growth is shifting

+852 2123 2621 toward peptides, complex small molecules, ADCs (Antibody-drug conjugates), bispecific ellie.li@bernsteinsg.com

antibodies, and other next-generation therapeutics that grow above market at 15-20%.

These modalities are significantly more difficult to manufacture and require specialized

chemistry, biologics, analytical and regulatory capabilities, creating a structural tailwind

for outsourcing and raising barriers to entry. CDMOs with proven expertise in complex

modalities should capture a disproportionate share of future industry growth. Among

China's leading players, we see WuXi AppTec as the best-positioned beneficiary given

its leadership in small molecules and peptides, Asymchem as an emerging challenger

with strong momentum in peptides, and WuXi Biologics as the leading biologics CDMO,

particularly in early-stage development.

China's leading CDMOs have become globalized with broad capacity networks

and operational competitiveness. Today, 75-90% of revenue for the leading players

comes from overseas markets, reflecting deep relationships with top multinational

pharmaceutical companies and global biotechs. To serve these customers, they have