Good morning, everyone. Welcome to this session. And this session is for WuXi Biologics, a global CRDMO player. And we are going to invite Dr. Chris Chen to do the presentation and tell us the most recent updates about the company. Welcome.
Thank you, Yang. It's a great pleasure to give our global investors a very quick update on WuXi Biologics. I think, first, I want to highlight the success of our CRDMO model and why we strongly believe our growth will continue. In the past two quarters, two reporting periods, we have seen flat growth, mostly because of COVID boom, and also because of somewhat weak biotech funding. I think our COVID boom is totally over. Biotech funding, we start forecast recovery back in early last year. So we are actually poised for strong growth. If you look at our business model, it's actually not a traditional CDMO model. We believe our core is CRDMO.
Today, I'm actually going to highlight how the R part will contribute to our future growth, make our company more exciting than industry peers, and also give us sustainable growth, not only in terms of revenue, but also profit. Over the years, we also become a global, truly a global company. Now we have four R sites globally and have seven D sites and nine manufacturing sites. So R, D, and M are all poised to strong growth in 2025. When we started the company, we said we're going to bet 100% on disposable. At that time, people are very cynical. How can you have a 2,000 L reactor compete with a traditional 15,000 L stainless steel? We have two solutions. One is through continuous processing. We can make our 2,000 L look like someone else's 15,000 L. So that's one solution. We already have 40 projects using continuous processing.
But today, I'm going to highlight a simple solution. If I have a 2,000 L, why don't we put six of them together, become 12,000 L? So over the past six years, we have run 300 batches already in five manufacturing plants in two countries, in China and in Ireland. We have already proven that the disposable technology can produce the same cost of goods as traditional stainless steel. So I want to put an end to this debate in our industry, saying stainless steel or disposable, which one is better? Because when we started in the industry, we said in the future, most of the product will be niche. You don't need five metric tons for an ADC, for a CD3 bispecific. For a CD3 bispecific, at most you need is 50 kg. Why do you need large scale for a 50 kg product?
For an ADC, you probably need only 100 kilos or 500 kilos. So we believe actually disposable really is the future. So now we have data. We have six years of data. We made on the pie chart, you can see the flexibility of our facility. The same facility, I can run a 10 g/l current process. I can also run a 1 g/l 1990 process. That's the flexibility of the facility. If it's a 1990 process, I use six 2,000 L together, or I use five 4,000 L together, become a 20,000 L. But if it's a current process developed by WuXi, I have 10 g/l , I only need one reactor. The same facility can handle 1 g/l or 20 g/l . You don't see this in traditional facility design. That's the belief of WuXi.
Again, just with a simple multiplexing, if you have a high titer, we use a low volume. If you use a low titer, we use high volume. We have already made 300 batches at 6,000 L scale or even 16,000 L scale, and that's already proven. The cost of goods is very comparable, and the efficiency. We truly believe disposable manufacturing is the future, and that's why more and more companies are following WuXi Biologics, saying use disposable to manufacture instead of traditional large stainless steel. If you look at the future, most of the product will be small volume, will be niche because of competition, because of the specialized medicine, so we believe disposable manufacturing is cost competitive, is flexible, is agile, also effectively accommodating really both small and large scale volume. I think this is, I want to put an end to this debate with just one slide.
I have already made 300 batches. The cost of goods, I can make the cost as low as $40 per gram or whatever you need in terms of accommodating. If you look at our business model, before our IPO, I have 100 molecules in the portfolio. We released a slide two days earlier. Now we have 800 assets. So in eight years, our portfolio expanded sevenfold. That's the power of the CRDMO business model. You've seen the success financially. I think, as I said, when you look at WuXi, you only need to look at the funnel. Funnel will determine everything. The funnel growth will drive the revenue growth, will drive the profit growth. I also want to share with you really the success of our business model. In 2017, we said follow the molecule. We grow with our clients. We grow with our biotech clients.
In 2014, this client gave us a few million dollars revenue. This year, it's probably going to be $100 million. Next couple of years, $200 million. That's the business model of WuXi. We grow with our partners, and our revenue also grows from $2 million to $50 million to $100 million to $200 million for this client. This is truly a success of the Follow-the-Molecule model. Think about it. We have 800 clients like this. We have 800 clients like this. Not every client will be this successful, but if you're saving 10%, that's a lot of revenue. That's very high revenue growth in there. We also have Win-the-Molecule. We're also very happy to report to you our first Win-the-Molecule project also received FDA approval. You see, in 2015, again, it's almost $1 million revenue.
And then in about three years, it will be $100 million revenue. Our business model, follow the molecule and win the molecule, is both proven and getting FDA approval. Nowadays, you also see a lot of M&A. A lot of innovation resides in small biotech companies. Over the past six years, 70 of my clients, of my portfolio companies, or the company I serve, get acquired at average valuation of $1.3 billion. We already created $90 billion market cap for those companies, $90 billion. As a result, our revenue also increased three- to fivefold. Because if this was originally a biotech company, they do five batches with us, and then after they become large pharma, they do 20 batches with us. Our revenue after the acquisition grew like three or four, fivefold.
Among the acquisitions, 2/3 are acquired by large pharma, and then the other 1/3 are acquired by biotech companies themselves. I think starting last year or starting two years ago, you also start to see acquisitions of the Chinese IP. And we are behind 70% of the deals. So essentially, we are the CMC owner of 70% of the deals. And after that acquisition, I also see a 10x-30x increase in our contract. So that's actually a huge tailwind for us. As companies, as large pharma biotech continue to source IP from China, we are actually the ultimate beneficiary because our revenue will grow 10x-30x near term. And in our portfolio, we have 800 assets. Some of them are from China. Now they convert with this acquisition, a China-based local asset into a global asset in the hands of large pharma.
So those trends actually help us in a really great deal. As I mentioned earlier, our service model is very different from traditional CMOs. We actually have our R. We certainly use our IP to enable global biotech companies. About 10 years ago, I asked my team, what's the industry trend? What IP does the industry need? We said three things: bispecific antibody, CD3 platform, ADCs. We bet all three things right. That's 2014. Remember, before ADC becomes hot, before bispecific becomes hot. So we start to say, how can we create IP in 2014? How can we create IP in 2014? It's to enable global peers to do this. By 2018, we already have WuXiBody, our platform launched. Now we have 44 projects, 44 projects, and four programs in phase I development. So all those 44 projects will give us 3%-5% royalties.
So that 44 projects alone will give us probably $100 million-$200 million royalties down the road in there. And the other platform we created is actually CD3. We believe we have the best-in-class CD3. We spent two years trying to find a perfect CD3 so that it's potent but not toxic, does not have a CRS storm. We have eight programs in the clinical trial. Now it's proven that's OK. So we bet the technology that our industry needs 10 years before our industry really needed or before it becomes popular, everyone needed. So now our CD3 is already accepted by GSK, accepted by Merck, and by many large pharma and biotech companies. As I mentioned, Merck, that's a good example. So about five years ago, our small Chinese biotech company asked us for a CD3 CD19. We designed a best-in-class molecule for them. This is our CD3 antibody.
This is our bispecific platform. This is our WuXi cell line. This is our continuous process. So this molecule has full IP from WuXi. And then now Merck takes it over, hopefully for autoimmune disease. And then we actually have 10% claim on royalty on this asset. So if Merck are able to sell $5 billion, we actually receive them $500 million a year. That's the beauty of our business model. And we have 50 assets like this, 50 assets like this. So as I mentioned, also in 2014, we said ADC is going to be hot. How do we do ADCs? So we designed all those platform technology. Now you see XDC as a subsidiary of us. We work with Aadi Bioscience. We work with Duality and many, many other companies on the space. So our R is almost like a traditional biotech licensing model.
So when we partner with a client, we receive up to $40 million upfront, like the GSK deal, up to $40 million, like GSK deal, like the [Aridis deal] , like the Canbridge deal] we announced in the public domain, and through the years, as the program moves forward, we also receive milestone payment. So this is what and all those will actually most of the revenue go directly to the bottom line. That's why I said I have very confidence to investors that every year our margin will improve because as this becomes big, this is why our margin will improve significantly. So that's why I want to highlight our business. It's very unique. Most of the other peers don't have this business, and this actually will be our main source of profit growth in the near future because this growth profits much faster than traditional CMO model.
I'll give you a regular business update. I also started with R. As I mentioned earlier, our CD3 platform may be best-in-class. So every company wants to use our CD3 because our CD3 targeted in a coupled with a novel TAA will give you a best-in-class CD3 T-cell engager. So we have. I already mentioned the Merck Kelun deal. I mentioned GSK four-program collaboration, and then the Medigene. Again, we have 50 programs like this that will generate a steady stream of upstream payment, milestone payment, and eventually royalties. The royalties will be hundreds of millions of dollars in the next couple of years and hopefully eventually will become even a billion dollars, and in the D part, we continue to improve ourselves. We continue to improve. Before we get into the industry, a typical DNA to IND is 24 months.
We change the timeline every year, every year. Last month, our standard timeline was nine months. So if you are a biotech company, if you work with our peers, it's 18 months. If you work with WuXi, it's nine months. You save nine months of burn. So that's why biotech companies really love us. Every year we change ourselves. Every year we improve ourselves. Even last year, there was so much noise outside. We looked internally. How can we serve our clients better, and that's why you see our market share actually improved last year because we offer even more competitive timeline. For a Boston company, last year we achieved from DNA to IND in six months. This is unheard of. Other than during COVID, it's unheard of.
Again, if you raise $50 million, you want to burn two years. Now I can save you six months of timeline through our work. That's why our D is definitely clearly industry leader. Again, as I said earlier, last year there was so much noise outside, but if you look at our numbers, it's actually incredible. We have more new clients than last year than ever. We have 62 companies signed mega deals with us in terms of contract, multimillion-dollar contract with us, 62 companies. Among them, half of them are in the U.S. So this is new clients adoption. Essentially, this is a company we never worked with before. Last year, we have 62 new companies come to us saying, "WuXi, I need your help." I already mentioned earlier, if you look at the WuXi, the only thing you need to know is the funnel.
Before IPO, our funnel is 100 assets. Now it's 817 assets. And then last year, we added a record 151 projects. I have 63 phase III programs give us a lot of near-term revenue. I have 21 commercial projects. So this is a very powerful funnel that will continue to drive our growth. Tomorrow, if you hear there is a breakthrough in our industry, in CNS, in FcRn, in autoimmune, in ADC, in bispecifics, 40% chance WuXi is making a contribution, not because of our funnel. And that's the follow the molecule and the Win-the-Molecule. So it's very powerful. Among the 151 projects added, about 60% is actually from U.S. market. So U.S. continues to be our largest market, followed by Europe, followed by China, and the rest is Japan and Korea.
Over the past couple of years, you've seen before COVID, on average, we get 60 molecules a year. During COVID, because of our strong execution, that number doubled to about 120. But among them is actually 20 COVID projects. So during COVID, we get 100 traditional projects. Last year, we actually got 150. So basically, after recovery of COVID, we actually get 50% more projects than during COVID for traditional non-COVID projects. That's how amazing it is. Last year, we continued to win projects from our global peers. So when someone in our peers stumbled, could not deliver, clients actually looked for alternatives, they actually came to WuXi. Last year, we had a record high of 20 projects. Essentially, 20 clients come to us with also a lot of late-stage assets. So as you see, the number of win molecules is record high.
Also, the number of late phase is record high. Essentially, 10 phase III and three commercial projects. The reason people come to us for the manufacturing project or phase III projects is because so far we have impeccable, impeccable, 100% success rate with U.S. FDA, with EMA, with all the regulatory agencies. So essentially, if you trust us with the late-stage asset, we almost guarantee you 100% approval when the agency comes. So far, 100%. We are actually probably the only company with 100% success in FDA and EMA and all the BLA approval. In the past couple of years, every month or so, you hear someone's program gets delayed because of an inspection issue. Someone gets delayed because of an inspection issue. So far, it has never happened in WuXi, and I believe it will never happen in WuXi as well.
We actually have 22 FDA and EMA inspections already. Last March, EMA came to us for inspection for 10 products at the same time, and they were so happy. We actually waived an inspection that's supposed to happen this year. Essentially, I have a large pharma client. They filed a BLA to a European agency. Europe said, "I don't need to go to WuXi because I already seen them last year. I have checked 10 products. They're all fine," so they actually waived the inspection. And this will save our clients probably $20 million-$30 million because they don't need to do a batch anymore and also save them six to nine months of time. It happened to us twice already. Once is because the EMA waived the inspection. The other time, FDA moved forward the inspection because they already come here.
They already come into WuXi and said, "Your program is due in September because I am going to visit WuXi in March. Why don't I do the inspection in March?" We also saved clients six months of time. So we hope this will keep happening. Not only do we have a 100% track record in delivering the BLA package, but also we'll save you time, six to nine months, because either they waived the inspection or they bundled the earlier inspection. So our manufacturing revenue will be our strong growth in the near-term future. Our CMO will be as strong as an industry leader because, as I mentioned already, we have 66 phase III programs, 21 commercial programs. If you add it up, it's already 87 programs. It's 87 programs. We're continuing to see more and more. As you see, the number of PPQs will go up.
If you look at the bottom, the number of PPQs, we had 16 last year, about 24 this year. 24 this year based on all the signed contracts. If we sign another five, six this year, it will be 30. So you notice there was a rise during 2022, 2023. That's because of COVID. We have eight COVID products. That's about 12 COVID PPQ. If you take out the COVID, it's a constant trend. It's going up, and now we already see in 2026, we already have 15. Again, this is based on the current portfolio. As the portfolio grows, hopefully 2026 will be higher than 2025 as well. I already mentioned that tomorrow, if you hear good news in our industry, 40% chance WuXi is making a contribution. If I look at our portfolio, I already count 18 mega blockbuster, 18 blockbuster drugs. Among them, eight mega blockbuster.
These are in the FcRn space, in the ADC space, in the bispecific space, and in the traditional antibody space. So we have eight programs. Hopefully, it will generate $200 million revenue for us every year when it reaches good sales, when it reaches good sales. And then we have another 10 programs that are $1 billion. So as I mentioned, some of the programs are already generating $200 million revenue for us starting next year. So the second column, there are the two examples I mentioned in the past. One of them is the first follow the molecule success. One of them is the first win molecule success. So it's already real. So I claim to have $100 million revenue. They'll actually give us $200 million next year. One of them I claim is $100 million. It will give us $100 million in about three years.
This is the power of WuXi. Whenever people ask me, "What's your highlight? What's most exciting?" I said, "Every segment I'm excited about." Because, as I mentioned, ADC, bispecific, antibody, autoimmune, we cover everything, and CNS. We don't have a near-term phase III CNS, but we have about a dozen, more than a dozen phase I and phase II programs. Some of them, hopefully, are really the breakthrough medicine that can treat Parkinson's and Alzheimer's. Giving you an update on our global site, I think Ireland is a key for our success. As the political landscape changed, Ireland is key for our success. We are the first to build a facility in Ireland. We are the fastest to build. It received our ISPE award for the year. So we built the highest quality facility.
Now, actually, we're very happy to report to you all the three facilities in Ireland are certified by the EMA agency, and then we actually have already completed two PPQ. We'll probably have a couple more to go, and then Ireland will actually be profitable this year, so since we built the facility in 2019 to 2024, it's profitable. It's actually a very standard industry timeline, so the success of Ireland is proven that WuXi not only can be successful in China, we can be successful in Ireland. If we trust the same methodology to the U.S., to Singapore, we hope we'll be successful in the U.S. and in Singapore as well. I mentioned the U.S. We're actually increasing our investment in the U.S. We are building a very state-of-the-art facility in Worcester, Massachusetts. It will be ready in 2027. They use the best of our technology.
So that facility can, again, accommodate a 1990 process with 1 g/l or accommodate the current WuXi process, 20 g/l . So the same facility can do 1 g/l versus 20 g/l . That's the flexibility we have in the Worcester facility. We announced earlier this month that we actually divested the facility in Ireland. So a lot of people are saying, "Is this because Biosecure?" No, not at all. I have an asset sitting in Ireland with $500 million. Our stock is so cheap. The rationale is I sell that asset, get $500 million, and buy back 6% of the company. With the asset, that does not generate a high return for us in Ireland, but it's $500 million cash sitting in Ireland. So we decided to sell that asset back to Merck because that was part of the original option anyway.
We built a dedicated facility for Merck, and they can take it if they wanted to. But in this case, because our stock valuation is so low, we decided to say, "We're going to extend that facility, push that facility back to Merck, get the $500 million, buy back our shares, and improve shareholder return." Because that facility is a low margin, overall, our margin profile actually improved by 100 basis points. So we can buy back 6% of the company. Our margin actually improved 100 basis points. Why wouldn't we do it? So that's the deal rationale. It has nothing to do with geopolitics. So I think as WuXi is a global company, we actually are very proud. We're actually leading the industry with green. We are green in every aspect. So as I mentioned over and over again, disposable manufacturing is greener than the traditional stainless steel.
We use less water. We use less footprint, less electricity, and everything. And without technology, we actually can reduce the gas emission by our carbon dioxide footprint by 80% without technology. So instead of a traditional 20,000 L reactor, now we have a 4, 000 L reactor, but I can get 20 g/l or 30 g/l . So we have the smaller footprint, but we can generate more product. So that's why our carbon dioxide footprint is actually 80% less. So that's why we believe this is really the future of technology. Our facility in Ireland, if you have a chance to visit, is actually the greenest facility on this planet. It's used disposable technology. It's used all the renewable energy as electricity. So it's actually very, very clean in that sense.
That's why we actually recognize the top 1% in many, many rating agencies as ESG by both Dow Jones, by FTSE, and even by EcoVadis. EcoVadis rating is very high. I think as a company originally from China, as we become global, we actually rank top 1% as ESG. I'm very proud of that. Very proud of that. I think I'll give you a summary. We firmly believe that the CRDMO business model we created is the most efficient for our industry. The R part, if you are an entrepreneur, if you are a professor at UC San Francisco or Stanford or Harvard or Tel Aviv or Cambridge London or Shanghai, if you're a professor, if you have an idea, we can convert that idea into a first milligram of drug. Through which you use our IP, whether it's CD3 or bispecific or ADC.
As the program becomes successful, I receive $100 million of payment, but also 3%-5% royalties. The R part, it may not be able to generate a billion-dollar near-term revenue, but it has billions of potential down the road. It's also a very high-margin business. The D part is our cup of tea. Globally, right now, every other asset is being developed by WuXi. Every other asset is being developed by WuXi. That basically means that's why I said tomorrow, 40% of the global great product is within WuXi. Maybe five years later, 50%. Half of the mega blockbusters will be developed at WuXi and hopefully manufactured at WuXi. The M is what most people are familiar with, the traditional M.
Our model is strong, but the timing for our model revenue growth is not there yet because as we follow the molecule, we need to wait for the mega blockbusters. In 2025, 2026, 2027, hopefully every year, we'll have quite a few mega blockbusters come up. And then they will generate, again, $100 million, $200 million revenue per molecule. I think that's really the beauty of that. I think I mentioned earlier, for the past two years, you see two reporting periods, we have flat growth. That's because we have a COVID, very high COVID comp. COVID at one point was 20% of revenue. So we have to ride that out with. Now it's totally over. And we also are subject to biotech funding because our revenue depends on biotech raising money. So we are the first to forecast that biotech already seen a recovery back in December of 2023.
I'm very glad to see every time a biotech company receives money, the first company to think of is WuXi. So that's why we are the first to see the biotech recovery. We are the last to see the impact, the negative impact from biotech funding. But we are the first to see the recovery. We see the recovery in late 2013, late 2023. Now we see very strong. Last year, we had 151 projects, record high. Again, record high number of projects. So really, I think our flat growth was due to COVID and lackluster biotech funding. Now both of those issues are over. So we are poised for strong growth. So I already mentioned R, D, and M all will grow this year and grow probably with exciting growth. The R part, we had seven deals last year with $140 million near-term payment.
That's a record high for the company. Then we have 50 deals like that. The B part, you name it, we had 151 projects last year. Every other molecule has been developed by WuXi. We have 20 Win-the-Molecule parts. The D part will grow as well. As I mentioned, more excitingly, the M part, a few mega blockbusters will be approved and will give us a strong revenue. The R and D and M will continue to grow. The company is also implementing lean manufacturing, the WBS system, lean on everything. The company is doing digital transformation of the company, digital improvement. That will also help us grow, help us be more efficient in operation, also help us grow. Here, we want to reinforce that we have a solid performance in 2024. Our 2024 guidance will be reiterated.
In 2025, R, D, and M are both seeing exciting growth. So our business momentum will accelerate. And in 2026, it will be even better than 2025. So you will see a growth acceleration in the next couple of periods. We are really excited to see we are back to growth. I think for WuXi Biologics, in the end, I think is our mission. Every drug can be made and every disease can be treated. Again, as I said, every other biology is now being developed by the WuXi. I think we are achieving our vision. Thanks so much.
Yeah, thank you for the wonderful presentation. Before I open the floor to Q&A, I have maybe two quick questions for Dr. Chen. By the way, I'm Yang, head of China Healthcare Research at JPM, based in Hong Kong. So first of all, can you quickly also talk about potential kind of margin for this year? As you mentioned, you are going to have accelerated growth this year.
I think because our revenue will grow, I think we have already guided investors that our margin will improve by at least 100-150 basis points per year.
Compared to 2024, that's right?
Compared to 2024, yeah.
Okay, great. And also, since you mentioned that you're going to continue your global expansion in terms of facility, can you talk about the CapEx plan for the next few years?
Our CapEx will be still in the range of RMB 5 billion, RMB 5 billion, RMB 5-RMB 6 billion range in the next two to three years. And then after that, I think we'll continue to reinforce that we'll have free cash flow. And then we'll use the free cash flow also to reinvest in new facility and also buy back our own shares.
Okay, great. And any questions from the floor? Denise. Yeah, there will be a mic. Can you use the mic so that everyone can hear you?
Hi. Would you mind commenting on return on equity over the longer term based on your expansion into facilities ex China?
Yeah. I think for our Ireland facility, we expect to achieve a gross margin of about 40%, an EBITDA margin of 40% as well. So I think that will be very comparable to any other global CDMO. In China, we can achieve a higher EBITDA margin. That's why overall profile, we are still the most profitable company in the space.
Congratulations on the fantastic work, Chris. I can vouch for WuXi's capabilities. They actually were instrumental in getting my drug approved last year. So the question I have for you and your team is, you guys continue to be the innovators in this particular perfusion field. Are you still doing a lot of IND to improve that further? You mentioned continuous processing and more with the upstream processing types of things you're doing.
Yeah, I didn't highlight because I only highlighted multiplexing because a lot of people in the industry are still debating whether WuXi can achieve the same cost of goods using the same scale. So I use that slide to prove. That's one approach, multiplexing. Use two, three, four reactors, bundle together, have achieved a similar scale, then achieve a similar cost. The other way is actually do you do perfusion using continuous processing. We actually are industry leader in this project. As you know, your project is a perfusion-based. We have 40 projects like that. So for traditional antibody, I can get to 30-40 g/l . That's the UI technology I mentioned. If you use that technology, you'll achieve 80% carbon dioxide footprint reduction. So that's why I said not only we innovate on technology, but it also helps the environment, and that's the technology I mentioned already.
It's called ultra-intensified. So if you use a stainless steel vessel, your traditional legacy product, let's say 1 g , 2 g , the new product, five grams, six grams, but with our technology, I can get to 30 g/l-40 g/l . So essentially, my largest reactor now is actually 6,000 L, single use, 6,000 L. If you do a 5x, 5x in terms of productivity per unit volume, then it's actually almost like someone else's 30,000 L stainless steel reactor. That's why we believe this is really the future. So if you look at the right side, we have the traditional footprint of project using stainless steel. With your single use, we can reduce it by 70%. With EY, we reduce it by 80% in terms of carbon footprint.
Any questions from the audience? If not, I would like to have a quick follow-up here. So with the continued global expansion for your facility, what's your kind of long-term projection in terms of revenue contribution from China facility compared to ex China facility?
As we expand more and more globally, I think by 2030, our China facility probably controls equally China versus global in terms of revenue contribution. So that's why we are investing heavily in Singapore and heavily in the U.S. to increase our income from global footprint.
Yeah, yeah, makes sense. And also, I'd like to understand some kind of impact for early projects. Given yesterday, actually, a few other CRO companies made a comment and also made guidance for their 2025. And it seems that early projects have some pressure. And I don't know what you have seen in terms of your R stage projects.
We haven't seen, that's why I said every company is different. We actually see strong growth in early stage projects. We added 131 projects from DNA to IND. Essentially, that reinforces the statement I made. Every time a biotech company raises money, the first company to think of is actually WuXi. So we actually continue seeing a strong recovery of early stage projects. If you look at our number, if you look at the number on the plot, that basically reflects the industry dynamics. You don't see the slowdown at all. So during COVID, for 2020 to 2022, you're probably - 20. Every year, there are probably 20 COVID projects, and essentially, in 2020, we have 80. In 2021, we have 110. In 2022, 110. So all those are, so if you look at WuXi, you don't see the biotech funding challenge at all. So that's the interesting phenomenon.
That's why I was the last to feel the impact of biotech funding. I was the first to recover. We actually seen recovery back in 2013, sorry, 2023. If you see 2023, there was already no COVID. There was already no COVID. But we still have 132 projects. That's a record high. And then last year, again, improved another 15% based on that. So if you look at WuXi's portfolio, you don't see biotech funding challenge at all. That basically means our market share actually keeps increasing during the tough environment when biotech funding was scarce. I think it makes sense. When biotech funding was scarce, people really want assurance. Coming to WuXi, we make sure we deliver the next milestone. They can raise the next round of money. And that's why you're seeing these very strong numbers.
Okay, makes sense. Any questions from the audience?
Hi. I was just wondering, what are your thoughts about the Biosecure Act ongoing? And also, if you have any impact on your business with that?
I'm sure the Biosecure Act has an impact on the business, but if you look at this, so if there's no Biosecure Act, the 150 would probably be 160. That's probably the extent of the impact. I'm glad that the Biosecure Act didn't pass last year. I think, as I said earlier, for WuXi, we cannot change the dynamics outside, but we look internally. How can we serve the client better? In this environment, if we continue to serve clients better, I think the geopolitics is another risk factor. It's another risk factor. I have a large pharma head of manufacturing visited us last April. I asked him, what do you see the impact of geopolitics? He said, there is quality, there is execution, there is price, and now you're an additional factor of geopolitics. If you are the best in every other aspect, geopolitics doesn't really impact you.
So that's why we continue to see record high number of projects. You also continue to see we actually have 10 phase III programs transferred to us from our peers. 10 phase III programs. Our peers are doing very well. If they stumble, the next company people go for is actually WuXi, despite all the clouds related to geopolitics. You see 10 commercial projects. You actually see 10 phase III projects, three commercial projects. Among the 10, half of them are U.S. companies. We're actually glad to see last year, despite all those noise, we actually have commitment from nine U.S. programs to launch from our side in China because of execution.
So again, go back to traditional CMO criteria. First is your track record, regulatory track record. We are the best. Your execution, we are the best. Your quality, your price, and the other factor, the sixth factor now becomes geopolitics. If we score well in the other factors, geopolitics doesn't really impact us to that extent. You don't see that from these numbers at all.
Other questions? And maybe I have another one, so can you quickly comment on new project signing prospects for this quarter and this year?
We continue to believe innovation is key. At this JP Morgan meeting, we've already seen a lot more exciting innovation. We've already seen more than a dozen people want to start a program with us, actually, even this week. So I think this JP Morgan seems to be a very exciting year, a very good start for 2025. We continue to see more and more innovation. It's actually interesting. We see innovation in San Diego, innovation in California, innovation in Boston, innovation in the U.K., Netherlands, Germany, almost every part of the world, including China. As I mentioned earlier, the China global outlicensing deal, 70% of the work is done by WuXi. We'll see that trend continue this year. It may even accelerate this year.
Interesting, and another quick question is, so you mentioned you have 50 programs, just like the Merck acquired the CN201 project. Can you quickly also comment on which disease area or which stage are those?
That's a good question. Our newest program, the program that we receive royalties, we have a couple of programs receive royalties already. But unfortunately, they're for Chinese market. So the royalty is very low, a couple of million dollars a year. The first program will receive around 10% royalty will be approved by 2026. So starting 2026, almost every year, we'll have a major component of a royalty-bearing program get approved. That's why I said our will continue to deliver very strong growth, both in terms of revenue and profit.
And maybe lastly, you mentioned WuXi has a very successful internal cost control program. So how much margin improvement do you think this program can continue to contribute?
Yep, so I want to add another point. The contribution from our, essentially, this part is mostly neglected by most investors because it's very hard to quantify, and you guys don't know it, so I have the asset, but you don't know the asset, so the analogy I have there is basically starting 10 years ago, I started planting apple trees. Every year, we plant a couple of trees. So starting this year, starting two years ago, we started to see apples, but the first couple of apples are very low-yielding apples, and then starting 2026, 2027, 2028, we started very high-yielding apples, so we're collecting a lot of apples every year. I think that's a good analogy for this. Go back to your point. Every year, we're improving. I didn't have one slide on headcount.
So one of the main efficiency improvements you'll see, we actually have a flat headcount. But we will continue to grow, deliver growth in the next couple of years because of efficiency improvement. So essentially, our cost, we'll control our cost, maintain our very cost competitiveness from a headcount perspective. But revenue will grow, see accelerate revenue growth in there. And that's the efficiency improvement.
Great. We are right on time. And thank you, Dr. Chen.
Thanks so much for the support from the global investors.