The controlling shareholder of Wuxi Biologics Cayman is paring its stake in the Chinese global open-access biologics technology platform company in a deal valued at HKD 4.65 billion (USD 599.24 million).
WuXi Biologics Holdings (Biologics Holdings) has entered into a block trade agreement with Morgan Stanley for the sale of 48.00 million stocks, representing a 3.7 per cent stake, at a price of HKD 96.80 apiece.
As at the date of this announcement but before completion of the placing, the controlling shareholder owns 35.4 per cent of Wuxi Biologics.
The listed Cayman Islands-incorporated group’s chairman, Ge Li, holds 22.3 per cent of Biologics Holdings and 58.9 per cent of the voting power at its general meetings.
Biologics is the fastest-growing sector of the pharmaceutical market as eight biologics appeared in the top ten selling drugs as of the end of 2018, according to Wuxi Biologics’ annual report for the year ended 31st December 2019.
This global category was valued at USD 251.50 million in 2018 and is expected to reach USD 625.60 million by 2026, representing a compound annual growth rate of 11.9 per cent.
Wuxi Biologics is benefitting from the boost in the rapid ascent of the biologics outsourcing market as it provides end-to-end services for discovery, development and manufacturing, from concept to commercial production.
The group’s revenue increased by 57.2 per cent from CNY 2.53 billion (USD 356.76 million) in FY 2018 to CNY 3.98 billion in FY 2019.
North America accounted for 53.7 per cent of turnover in FY 2019, up from 50.6 per cent in FY 2018.
Wuxi Biologics’s earnings before interest, tax, depreciation and amortisation rose 53.5 per cent year-on-year, from CNY 962.10 million in FY 2018 to CNY 1.48 billion in FY 2019.
It booked adjusted net profit of CNY 1.21 billion for the year, up from CNY 751.50 million in FY 2018.
© Zephus Ltd