FAST NEWS: WuXi XDC’s profit surges on growth in ADC market

The latest: WuXi XDC Cayman Inc. (2268.HK) announced Thursday that it expects to report its net profit last year jumped more than 80% from 2022, while its adjusted net profit and sales revenue both more than doubled.

Looking up: The company attributed the strong gains to rapid growth in the development of the antibody-drug conjugate (ADC) industry that is its main focus, and its unique competitive strengths in winning projects.

Take Note: The company’s revenue tripled to 993 million yuan in the first half of last year, meaning the growth rate likely slowed in the second half.

Digging Deeper: Established in December 2020, WuXi XDC is a subsidiary of WuXi Biologics (2269.HK) engaged in contract research, development and manufacturing (CRDMO) of ADCs and other biocoupled drugs. It was spun off and separately listed in Hong Kong last November. According to a research report cited in its prospectus, WuXi XDC was the world’s second largest CRDMO engaged in ADC and other bioconjugate drugs in 2022, with about 10% of the global market. The company’s business has been growing rapidly in recent years, with revenue and net profit up 202% and 80%, respectively, in the first half of last year.

Market Reaction: WuXi XDC’s shares rose on Thursday to close up 10% at HK$21.90 by the midday break. They now trade 6.3% higher than its IPO price of HK$20.60.

Translation by A. Au

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