Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics (207940 KS)</a> reported 11% YoY growth in revenue to KRW1.07 trillion in 4Q23 driven by the ramp-up of operation of its Plant 4 and robust sales backlog.</li>
<li>The company closed 2023 with record high revenue and operating profit, bucking the weakening trend in overall global CDMO sector.</li>
<li>The outlook remains strong, with resilient business performance expected to drive a 10–15% annual growth in revenue for 2024.</li>
</ul>



Samsung Biologics (207940 KS) reported 11% YoY growth in revenue to KRW1.07 trillion in 4Q23 driven by the ramp-up of operation of its Plant 4 and robust sales backlog.
The company closed 2023 with record high revenue and operating profit, bucking the weakening trend in overall global CDMO sector.
The outlook remains strong, with resilient business performance expected to drive a 10–15% annual growth in revenue for 2024.


Samsung Biologics (207940 KS): Stellar Performance in 4Q23; Outlook Remains Strong

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> has guided for weaker-than-expected revenue and lower profit in 2023, as the operating industry is facing near-term challenges due to biotech funding slowdown.</li>
<li>$300 million lesser revenue in development business due to reduced number of projects and manufacturing revenue deficit of $100 million due to CMO deferral contributed to the miss.</li>
<li>Following the announcement, Wuxi Biologics shares nosedived 24% on HK stock exchanges, marking its biggest one-day slide since listing in 2017.</li>
</ul>



Wuxi Biologics (2269 HK) has guided for weaker-than-expected revenue and lower profit in 2023, as the operating industry is facing near-term challenges due to biotech funding slowdown.
$300 million lesser revenue in development business due to reduced number of projects and manufacturing revenue deficit of $100 million due to CMO deferral contributed to the miss.
Following the announcement, Wuxi Biologics shares nosedived 24% on HK stock exchanges, marking its biggest one-day slide since listing in 2017.


Wuxi Biologics (2269 HK): Lowered 2023 Revenue Expectation Amid Challenging Industry Outlook

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

WuXi XDC Cayman  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-xdc-cayman-inc" target="_blank" data-smartkarma-citation="entities:39917:1" rel="noopener">WuXi XDC Cayman (1877628D HK)</a> raised US$470m in its Hong Kong IPO.</li>
<li>WuXi XDC Cayman (WXDC) is a CRDMO focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.</li>
<li>In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.</li>
</ul>



WuXi XDC Cayman (1877628D HK) raised US$470m in its Hong Kong IPO.
WuXi XDC Cayman (WXDC) is a CRDMO focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
In our previous notes, we looked at the company’s past performance and valuations. In this note, we talk about the trading dynamics.


WuXi XDC Cayman IPO Trading - Strong Subscription Rates Heading into Listing

<ul>
<li>In 1H23, biologics division of <a href="https://www.smartkarma.com/entities/lonza-group-ag-d59a4527-e054-4770-89f0-a1dd71a12aa5" target="_blank" data-smartkarma-citation="entities:27917:1" rel="noopener">Lonza Group (LONN SW)</a> reported revenue decline of 1% YoY to CHF1.6B, due to low mRNA sales dragged by lower demand for the COVID-19 vaccines.</li>
<li>Reflecting slower-than-expected growth in early-stage services and continued weak demand for nutraceutical capsules, Lonza has reduced 2023 sales growth expectation and cut core EBITDA margin guidance to 28–29%.   </li>
<li>Growth in 2024 will be impacted by high base, the subsequent mRNA revenue loss, and trial setback faced by small biotech client. Lonza anticipates 2024 margin in the high twenties.</li>
</ul>


In 1H23, biologics division of Lonza Group (LONN SW) reported revenue decline of 1% YoY to CHF1.6B, due to low mRNA sales dragged by lower demand for the COVID-19 vaccines.
Reflecting slower-than-expected growth in early-stage services and continued weak demand for nutraceutical capsules, Lonza has reduced 2023 sales growth expectation and cut core EBITDA margin guidance to 28–29%.   
Growth in 2024 will be impacted by high base, the subsequent mRNA revenue loss, and trial setback faced by small biotech client. Lonza anticipates 2024 margin in the high twenties.


Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>WuXi XDC set terms for an upcoming IPO: the fast-growing CRDMO offers 178.4M shares at the price range of HK$19.90-HK$20.60, implying a market cap of ~HK$23.9B (~$3B) at the midpoint. </li>
<li>Cornerstone investors agreed to subscribe and buy ~116M shares, assuming the IPO price of HK$20.25 at the midpoint. WuXi XDC shares will begin trading on Friday, November 17. </li>
<li>My PT of HK$25.57 implies a ~26% upside to the IPO price at the midpoint. WuXi XDC’s premium multiples reflect 100%+ top-line growth and the company’s leadership position. </li>
</ul>


WuXi XDC set terms for an upcoming IPO: the fast-growing CRDMO offers 178.4M shares at the price range of HK$19.90-HK$20.60, implying a market cap of ~HK$23.9B (~$3B) at the midpoint. 
Cornerstone investors agreed to subscribe and buy ~116M shares, assuming the IPO price of HK$20.25 at the midpoint. WuXi XDC shares will begin trading on Friday, November 17. 
My PT of HK$25.57 implies a ~26% upside to the IPO price at the midpoint. WuXi XDC’s premium multiples reflect 100%+ top-line growth and the company’s leadership position. 


WuXi XDC IPO Valuation Analysis: Premium Multiples Reflect 100%+ Top-Line Growth

Switzerland

Lonza Group AG produces organic fine chemicals, biocides, active ingredients, and biotechnology products.  The Company offers custom chemical manufacturing and fermentation processing and manufactures its products for the life sciences, pharmaceuticals, food processing, and agricultural products industries.  Lonza operates production sites in Europe, the United States, and China.

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Lonza Group AG (LONN VX)

Samsung Biologics (207940 KS): Stellar Performance in 4Q23; Outlook Remains Strong

Samsung Biologics reported 11% YoY revenue growth in 4Q23, driven by Plant 4 operations and strong sales backlog. Resilient business performance...

Tina Banerjee

Wuxi Biologics (2269 HK): Lowered 2023 Revenue Expectation Amid Challenging Industry Outlook

Wuxi Biologics expects 2023 revenue will miss by $400M due to reduced number of projects amid industry slowdown. New capacity ramp up, together...

Tina Banerjee

WuXi XDC Cayman IPO Trading - Strong Subscription Rates Heading into Listing

WuXi XDC Cayman (1877628D HK) raised US$470m in its Hong Kong IPO. In our previous notes, we looked at the company’s past performance and...

Clarence Chu

Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...

Tina Banerjee

WuXi XDC IPO Valuation Analysis: Premium Multiples Reflect 100%+ Top-Line Growth

WuXi XDC set terms for an upcoming IPO in Hong Kong. The company plans to raise ~$470M, and the IPO price range implies a market cap of ~$3B at the...

Andrei Zakharov

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Samsung Biologics (207940 KS): Stellar Performance in 4Q23; Outlook Remains Strong

​Samsung Biologics reported 11% YoY revenue growth in 4Q23, driven by Plant 4 operations and strong sales backlog. Resilient business performance...

Tina Banerjee

Wuxi Biologics (2269 HK): Lowered 2023 Revenue Expectation Amid Challenging Industry Outlook

​Wuxi Biologics expects 2023 revenue will miss by $400M due to reduced number of projects amid industry slowdown. New capacity ramp up, together...

Tina Banerjee

WuXi XDC Cayman IPO Trading - Strong Subscription Rates Heading into Listing

WuXi XDC Cayman (1877628D HK) raised US$470m in its Hong Kong IPO. In our previous notes, we looked at the company’s past performance and...

Clarence Chu

Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

​Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...

Tina Banerjee

WuXi XDC IPO Valuation Analysis: Premium Multiples Reflect 100%+ Top-Line Growth

WuXi XDC set terms for an upcoming IPO in Hong Kong. The company plans to raise ~$470M, and the IPO price range implies a market cap of ~$3B at the...

Andrei Zakharov

Samsung Biologics reported 11% YoY revenue growth in 4Q23, driven by Plant 4 operations and strong sales backlog. Resilient business performance...

Wuxi Biologics expects 2023 revenue will miss by $400M due to reduced number of projects amid industry slowdown. New capacity ramp up, together...

Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...