WuXi Biologics (02269) shares rose more than 4%, reaching HK$44.84 as of press time, up 4.13%, with a turnover of HK$265 million.
On the news front, on November 2, Fresenius and WuXi Biologics entered into a partnership, under which Fresenius will obtain exclusive options over up to 37 confirmed biosimilar candidate products in the next 10 years. Among them, WuXi Biologics will be responsible for early-stage development, while Fresenius will be responsible for formulating long-term production strategies for the products. The two parties did not disclose the upfront payment and milestone payment amounts of the deal, but Fresenius said this is the largest development agreement announced in the biosimilar industry to date, with the 37 products corresponding to original drugs with combined annual sales at list prices exceeding EUR 370 billion. Some analysts pointed out that this long-term contract, which is fee-for-service and has no upfront payment, shows that leading buyers recognize China's CRDMO process capabilities, and market attention toward CXO is shifting from cyclical recovery to ten-year revenue lock-in. UBS released a research report stating that this move is seen as recognition of the company's R&D strength, maintaining a "Buy" rating and a target price of HK$62.
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