Citi has added WuXi Biologics (02269.HK) to its 90-day positive catalyst watch list, according to a research report.

The bank believes the company may raise its overall guidance in the fourth quarter, and the biosimilar development agreement reached with Fresenius could also prompt the company to lift its long-term revenue target for contract manufacturing organization (CMO) business.

Citi also noted that WuXi Biologics is one of its preferred AI-driven drug discovery (AIDD) beneficiary stocks, and believes the company's AIDD capabilities are currently undervalued by the market.