SCHEDULE: WuXi Entities Disclose 7.0% Stake in Adagene Inc.

WuXi PharmaTech Healthcare Fund I L.P. and WuXi AppTec Co., Ltd. have disclosed a 7.0% beneficial ownership stake in Adagene Inc. as of September 30, 2025.

Summary

• WuXi PharmaTech Healthcare Fund I L.P. and WuXi AppTec Co., Ltd. (collectively, the "Reporting Persons") have reported beneficial ownership of 4,121,815 ordinary shares of Adagene Inc.
• This ownership represents 7.0% of Adagene Inc.'s ordinary shares outstanding.
• The beneficial ownership was measured as of September 30, 2025.
• WuXi AppTec Co., Ltd. is the indirect parent company and ultimate beneficial owner of WuXi PharmaTech Healthcare Fund I L.P., and they share voting and investment authority over these shares.
• The percentage of class is calculated based on 58,914,087 ordinary shares outstanding as of June 30, 2025, as reported in Adagene Inc.'s Registration Statement on Form F-3 filed on October 31, 2025.
• The shares are held directly by WuXi PharmaTech Healthcare Fund I L.P. in the form of 3,297,452 American Depositary Shares (ADS), with each ADS representing 1.25 ordinary shares.

Sentiment

Score: 7

Explanation: The disclosure of a significant 7.0% stake by a prominent entity like WuXi AppTec (through its fund) is generally viewed positively as it signals confidence and a substantial investment in Adagene Inc. It's a factual ownership report, not a performance update, so the sentiment is based on the implications of the investment itself.

Positives

• The disclosure of a significant 7.0% stake by WuXi PharmaTech Healthcare Fund I L.P., with its parent WuXi AppTec Co., Ltd., indicates a notable investment and potential confidence in Adagene Inc.
• WuXi AppTec Co., Ltd., a major player in the pharmaceutical and biotech contract research, development, and manufacturing services (CRDMO) industry, being the ultimate beneficial owner, could imply strategic alignment or interest in Adagene Inc.'s operations or pipeline.

Negatives

• The filing is a factual disclosure of ownership and does not contain any explicitly negative information regarding Adagene Inc. or the investment.

Future Outlook

The filing is a disclosure of current ownership and does not contain forward-looking statements or guidance regarding Adagene Inc.'s future performance or the reporting persons' future investment intentions beyond the fact of their current stake.

Management Comments

• The filing does not contain direct quotes or paraphrased statements from company management of Adagene Inc. or the reporting persons, beyond the certification statement by Ming Shi, Director, confirming the accuracy of the filing.

Industry Context

This Schedule 13G filing indicates a significant passive investment by WuXi PharmaTech Healthcare Fund I L.P., with its parent WuXi AppTec Co., Ltd., in Adagene Inc., a biotechnology company. Such disclosures are common for institutional investors or funds that acquire more than 5% of a company's outstanding shares. WuXi AppTec's involvement, even indirectly, highlights continued investment interest from major players in the broader life sciences and contract research/manufacturing sector into innovative biotech firms like Adagene, potentially signaling confidence in Adagene's pipeline or technology.

Comparison to Industry Standards

• This filing is a standard disclosure of beneficial ownership exceeding 5% as required by SEC regulations.
• It does not provide performance metrics for comparison to industry standards.
• The 7.0% stake is a substantial minority holding, typical for institutional investors or strategic partners in the biotech sector, similar to how funds like BlackRock or Vanguard disclose their passive stakes in various public companies, or how venture capital arms of larger corporations might hold significant positions in their portfolio companies.

Related Party Transactions

• WuXi AppTec Co., Ltd. is the indirect parent company and ultimate beneficial owner of WuXi PharmaTech Healthcare Fund I L.P., and they share voting and investment authority over the 4,121,815 ordinary shares of Adagene Inc. This establishes a related party relationship between the two reporting entities concerning this investment.

Stakeholder Impact

• Shareholders: The disclosure of a significant 7.0% stake by a reputable entity like WuXi AppTec (via its fund) could be perceived positively, potentially boosting investor confidence and signaling a vote of confidence in Adagene's long-term prospects. It also identifies a major institutional holder.
• Management: The presence of a significant institutional investor like WuXi AppTec may influence strategic decisions or corporate governance, although the filing indicates shared voting power rather than sole control.

Next Steps

• The filing does not explicitly mention any future actions, events, or milestones for Adagene Inc. or the reporting persons beyond the ongoing ownership.

Key Dates

Recommendation

This filing is a disclosure of a significant ownership stake by WuXi PharmaTech Healthcare Fund I L.P. and WuXi AppTec Co., Ltd. in Adagene Inc. While the 7.0% stake is substantial and indicates confidence from a major industry player, the filing itself does not provide new operational or financial performance data for Adagene Inc. to warrant a 'buy' or 'sell' recommendation. It primarily confirms an existing or updated passive investment position. Therefore, a 'hold' recommendation is appropriate, acknowledging the positive signal of institutional investment without new fundamental catalysts for a change in investment thesis.

Keywords

Adagene Inc., WuXi PharmaTech Healthcare Fund I L.P., WuXi AppTec Co., Ltd., beneficial ownership, Schedule 13G, ordinary shares, biotechnology investment, pharmaceutical investment, equity stake, institutional ownership