Wuxi Biologics achieves a surge in project growth, resulting in a substantial rise in share price. The Chinese biotech company exceeds annual project goals and forms a partnership with BioNTech for antibody research services.
Troy D. Hanson
January 11, 2024
Wuxi Biologics (Cayman) experienced a surge in its share price after announcing the addition of numerous new projects, bringing its annual total close to a record high for 2021.
On Thursday, the stock rose by 10% to reach 30.80 Hong Kong dollars (US$3.94), marking its largest single-day percentage gain in over a year.
According to a filing with the exchange on Wednesday, the Chinese biotech company successfully added 132 integrated projects in 2023, surpassing its annual goal of 100 projects and coming close to the figures of 138 and 136 achieved in 2021 and 2022 respectively.
Nomura analysts reported that Wuxi Biologics gained 41 new projects in December alone. This result was seen as a positive surprise considering the company's initial pessimistic outlook for the month. In early December, Wuxi Biologics had revised its profit and revenue forecast for 2023, citing fewer new projects and regulatory approval delays.
In a research note, Nomura analysts Jialin Zhang and Yi Xiang stated, "Recent rich deal flows within the innovative drug space bode well for the recovery of the company." They expressed their confidence in Wuxi Biologics by assigning it a buy rating and setting a target price of HK$58.44.
In addition to this positive development, Wuxi Biologics also announced a partnership with BioNTech for research services related to the discovery of new antibodies. As part of the agreement, Wuxi will receive an upfront payment of US$20 million, with the possibility of additional payments based on research, commercial, and other milestones.