WUXI XDC (02268) surged over 5% before noon, with a gain of 4.89% at the time of writing, trading at HK$70.8 and a turnover of HK$145 million.

According to recent analysis, the MSCI China Healthcare Index has risen 59.5% year-to-date, outperforming the MSCI China Index by 24%. Despite a recent correction in the healthcare sector—falling about 10% since early October—undervalued pharmaceutical firms like WUXI XDC remain attractive.

Market expectations suggest a recovery in capital market financing activity, expansion in overseas innovative drug deals, and a rebound in domestic R&D demand for novel therapies. Additionally, with the U.S. entering a rate-cutting cycle, CXO companies are anticipated to see improved performance in the second half of the year. The clinical development of licensed innovative drug pipelines overseas could serve as a key catalyst for the sector.

Goldman Sachs noted that WUXI XDC continues to demonstrate strong order momentum, supported by steady client demand, particularly from U.S. customers. The company is actively exploring beyond the ADC (antibody-drug conjugate) field, including AOCs (antibody-oligonucleotide conjugates) and RDCs (radiopharmaceutical drug conjugates). Its full-year revenue growth target of 45% remains on track.

Furthermore, WUXI XDC is negotiating contracts for its Singapore facility, with several agreements expected to be signed by year-end. However, due to the time required for capacity expansion, revenue contributions from this site are projected to be limited before 2027.