HK Stock Market Move | WUXI BIO (02269) rises over 4%, secures largest biosimilar development order; UBS gives target price of HK$62

WUXI BIO (02269) rose over 4%, up 4.13% as of press time to HK$44.84, with turnover of HK$265 million. On the news front, on November 2, Fresenius and WUXI BIO reached a collaboration under which Fresenius will obtain exclusive options over up to 37 confirmed biosimilar candidate products over the next 10 years. Under the arrangement, WUXI BIO will be responsible for early-stage development, while Fresenius will formulate long-term production strategies for the products. The two parties did not disclose the upfront payment or milestone amounts for the deal, but Fresenius said it is the largest development agreement announced to date in the biosimilar industry, with the 37 products corresponding to originator drugs with combined annual sales at list prices exceeding EUR370 billion. Some analysts noted that this long-term contract, which is fee-for-service with no upfront payment, shows that leading buyers recognize China's CRDMO process capabilities, and that the market's focus on CXO has shifted from a cyclical recovery to ten-year revenue lock-in. UBS issued a research report saying the move is seen as recognition of the company's R&D strength, maintaining a "Buy" rating and a target price of HK$62.