Wuxi Biologics Sees Revenue Growing 10% in 2023

By Ben Otto

Wuxi Biologics has said that its operations remain normal and that it expects revenue to expand about 10% this year, coming after shares of the Chinese contract drugmaker slid 24% and were halted in the wake of revised guidance.

Wuxi Bio said late Monday that there has been no material adverse change to its business operations and financial position, and that not withstanding a biotech funding slowdown and lower-than-expected revenue this year, its outlook remains positive. It expects trading of shares to resume Tuesday morning.

The company also forecast "strong" gross profit and overall growth in 2024 and 2025, while reiterating expectations for a turnaround in the second half of next year.

The trading halt early Monday came after shares suffered their biggest one-day drop since the company listed in Hong Kong in 2017, as investors responded to a downward revision to guidance released ahead of market open. Wuxi Bio had said that a funding slowdown, lower revenue from Covid-related projects and delays in major projects would lead to a profit decline and lower-than-expected revenue.

Revenue from two main segments will likely come up about $400 million short of full-year targets, it said.

The company had targeted revenue growth of 30% in 2023.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

December 04, 2023 19:50 ET (00:50 GMT)

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