In the pharmaceutical industry, the CRO (Contract Research Organization) sector is undergoing transformation. In the first half of 2025, many CRO enterprises delivered impressive results, giving a strong boost to industry development and sounding the movement of vigorous growth.
Among them, WuXi AppTec stands out as a shining star in this boom. In the first half of 2025, its operating revenue soared to RMB 20.8 billion, a year‑on‑year increase of 20.64%. Net profit attributable to parent company surged to RMB 8.561 billion, up 101.92% year‑on‑year. The adjusted Non‑IFRS net profit attributable to parent company reached RMB 6.31 billion, rising 44.4% year‑on‑year. Furthermore, the amount of orders on hand of WuXi AppTec hit RMB 56.69 billion, growing 37.2% year‑on‑year. This figure acts as a powerful backing and provides solid support for its subsequent development.
Such outstanding performance of WuXi AppTec partly stems from the company’s continuous focus on and enhancement of the CRDMO business model, which drives steady growth in operating revenue. On the other hand, continuous optimization of production processes and operational efficiency, as well as improved capacity efficiency brought by growth in late‑stage clinical and large‑scale commercial projects, have boosted overall profitability. In addition, gains from the disposal of partial shares in its associated enterprise WuXi XDC Cayman Inc. also contributed to profit growth.
Besides WuXi AppTec, other CRO enterprises have also reported positive results. Pharmaron estimates its revenue for the first half of 2025 will increase by 13%‑16% year‑on‑year, and adjusted non‑IFRS net profit attributable to parent company will rise 6%‑11% year‑on‑year. Joinn Laboratories is expected to turn losses into profits, with net profit attributable to parent company ranging from RMB 50.3243 million to RMB 75.4865 million for January‑June. Asymchem also delivered solid performance. It projects operating revenue of RMB 1.55‑1.62 billion in H1 2025, up 15%‑20% year‑on‑year, with net profit attributable to parent company turning positive at RMB 0‑30 million.
From a macro perspective, the whole CRO industry is embracing favorable conditions. Since 2025, primary‑market financing for innovative drugs has increased 45% year‑on‑year to RMB 32 billion. Enterprises such as BeiGene and Hengrui Medicine each secured financing exceeding RMB 5 billion. The recovery in financing serves as fresh source of momentum. Following the transmission chain of “financing → R&D → outsourcing”, it drives growth in CRO orders.
The surge in BD transactions is another key driver of industry prosperity. Over 80 BD deals for innovative drugs were closed in H1 2025, with an average upfront payment reaching RMB 850 million (compared with only RMB 420 million in the same period of 2024). This greatly boosts cash flow for Biotech firms. For instance, after receiving an RMB 1.2 billion upfront payment via BD, one enterprise signed a RMB 150‑million clinical CRO contract with Wuxi MedCore within the same month to accelerate project progress. It also reshapes market expectations for “pipeline value”, lifts market capitalization of innovative‑drug developers, and in turn raises order volume and premium capacity of CROs.
Meanwhile, regarding this round of widespread strong results across the CRO sector, questions arise over whether the recovery can be sustained. Industry insiders tend to believe this represents genuine recovery rather than a short‑term bubble. On one hand, returning‑to‑normal overseas pharmaceutical innovation activities create opportunities for CRO players. On the other hand, continuously improved review efficiency and record‑high approvals of innovative drugs in China deliver new domestic‑demand‑driven growth momentum for CROs. Statistics show that 43 innovative drugs were approved for marketing in China in the first half of this year, a year‑on‑year rise of 59%.
Looking ahead, despite bright prospects, the CRO industry still faces challenges. R&D risks persist. Phase‑III clinical failures of Biotech projects will exert direct impacts on outsourced CRO assignments, bringing risks of delayed revenue recognition and bad debts. Emerging modalities such as gene therapy and PROTAC feature high R&D complexity and call for continuous technical investment from CROs. Nevertheless, as the industry moves upward, CRO enterprises that keep enhancing technical strengths and service capabilities and closely follow innovative‑drug R&D trends are expected to forge ahead in this blue ocean full of opportunities and challenges and write new chapters of success.