UBS upgrades Wuxi Biologics stock rating to Buy on new modalities growth

Published 08/08/2025, 09:22
UBS upgrades Wuxi Biologics stock rating to Buy on new modalities growth

Investing.com - UBS upgraded Wuxi Biologics (HK:2269) (OTC:WXXWY) from Neutral to Buy on Friday, more than doubling its price target to HK$41.20 from HK$20.30.

The upgrade follows Wuxi Bio’s preliminary first-half 2025 recovery from the first half of 2024, with the company on track to meet its full-year guidance, according to UBS.

UBS attributes the recovery primarily to growth in new modalities, specifically antibody-drug conjugates (ADC) and bi/multi specific antibodies (b/msAb), which recorded a strong 2020-24 CAGR of 43% to 345 projects, exceeding monoclonal antibodies (328 mAbs; 17% CAGR).

The firm highlighted that subsidiary Wuxi XDC’s preliminary H1 2025 revenue accounts for approximately 27% of Wuxi Bio’s total revenue, up from 22% in 2024, serving as a strong driver for the parent company.

UBS believes Wuxi Bio’s "follow the molecule" strategy of rolling out new modalities to the late stage represents a long-term revenue and profit driver, noting that 89% of projects are currently pre-phase 3.

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