Morgan Stanley: The Value BioDlink Brings to WuXi XDC
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Morgan Stanley highlights the strategic rationale behind WuXi XDC's proposed acquisition of BioDlink (formerly TOT Biopharm), a Suzhou-based biopharmaceutical and CDMO company with roots in Taiwan. BioDlink has successfully transitioned into an ADC-focused CDMO model. As of mid-2025, the company had accumulated 169 CDMO projects, including 113 ADC projects. Its notable clients include Duality, Akeso, TopAlliance, Lepu, Alphamab, and BioRay.
BioDlink brings substantial manufacturing capacity to the table, offering an annual total of 35.3 million vials. This comprises 30 million antibody vials, supported by 300,000 liters of drug substance capacity, alongside 5.3 million ADC vials, backed by 960 kilograms of drug substance capacity. This addition will enable WuXi XDC to accelerate its manufacturing capacity ramp-up to fulfill upcoming commercial contracts. WuXi XDC had already expanded its own ADC capacity to 16 million vials by July 2025 and expects to double its total drug product capacity by 2029.
For the first half of 2025, BioDlink reported revenue of RMB 489 million and net profit of RMB 4 million. Morgan Stanley maintains an Overweight rating on WuXi XDC (2268.HK) with a target price of HK$88.00. This target, based on DCF valuation, implies a 21% upside from the January 15 closing price of HK$72.90.