HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

A Different View on Global CDMO - The Industry Trend, the Major Players, and the Outlook

Pre-IPO Beijing Luzhu Biotechnology - The Eventual Revenue Scale and Profit Margins Could Be Limited

WuXi AppTec (2359.HK/603259.CH) 2023Q1 - The Signals Behind the Plunge in Stock Price

Wuxi Biologics Placement (2269 HK) - Things Are No Longer Easy When the Magic of CXO Wears Off

China Healthcare Weekly (Nov25)-Wuxi Biologics, Valuation Logic Changed by NRDL, Biotech Model Fails

WuXi AppTec (2359.HK/603259.CH) 2022 Results- Say Goodbye to High Growth and Get Used to True Colors

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

<ul>
<li>WuXi Bio’s performance growth is obviously decreasing. Based on customer structure/development trend, overseas biotech is the main growth point,which means WuXi Bio would be more vulnerable to the external financing environment.</li>
<li>WuXi Bio expands manufacturing capacity aggressively through new construction/acquisitions. An important assumption is WuXi Bio can continue receiving overseas orders, otherwise its CDMO production capacity would be considered excessive.</li>
<li>Due to IRA,whether US market would reflect a slowdown in growth of healthcare spending, thereby depressing the potential return on drug R&amp;D? This is a fatal blow to China CXO.</li>
</ul>


WuXi Bio’s performance growth is obviously decreasing. Based on customer structure/development trend, overseas biotech is the main growth point,which means WuXi Bio would be more vulnerable to the external financing environment.
WuXi Bio expands manufacturing capacity aggressively through new construction/acquisitions. An important assumption is WuXi Bio can continue receiving overseas orders, otherwise its CDMO production capacity would be considered excessive.
Due to IRA,whether US market would reflect a slowdown in growth of healthcare spending, thereby depressing the potential return on drug R&amp;D? This is a fatal blow to China CXO.


Wuxi Biologics (2269.HK) 2022 Results - Key Takeaways and the Outlook