康龙化成 (3759.HK): Pharmaron: Asia Pacific Global Healthcare Conference Feedback

Morgan Stanley hosted meetings with Pharmaron (3759.HK) at the Global Healthcare Conference. Pharmaron's project portfolio will see a significant transition to later-stage and commercial contracts in the next 3 years: small-molecule API reactor capacity is set to double from its current 1,200 cubic meters to 2,400 cubic meters by 2028, with the goal of achieving large-scale commercial production in the next few years (as a reference, WuXi AppTec's capacity reached >4,000 cubic meters by the end of 2025, +60% YoY). Besides Lilly's orforglipron, Pharmaron has other oral GLP-1s in the pipeline as well (all integrated projects). Current utilization is "very high". The raised guidance incorporated improving early-stage funding for biopharma and commercial backlog. Capex and acquisitions will be China-heavy: about 80% of capacity will remain in China, with the rest consisting of commercial-scale capacity in Rhode Island, US and the UK, mostly for API;