WuXi’s ADC CDMO stages $500m IPO

WuXi XDC, a China CDMO offering drug development and manufacturing for antibody drug conjugates (ADCs), is conducting a $500 million Hong Kong IPO.

A member of the WuXi AppTec empire, WuXi XDC is 60% owned by WuXi Biologics while WuXi AppTec, the parent, owns the remaining 40%. The IPO – plans of which were first announced in July – comes at a time when ADCs and bioconjugates are hot, the current favorites of many drug companies looking for the best cancer therapies.

The company says it will use the funds to expand its manufacturing capacity and fund possible acquisitions. Bankers are currently offering the shares; the shares are expected to list on November 17.

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WuXi XDC offers a full line of services to companies, including key intermediates, such as chemical payload-linkers and biologics (monoclonal, bispecific and multispecific antibodies or other recombinant proteins), plus bioconjugate drug substances and drug products. WuXi XDC believes its streamlined all-inclusive platform reduces development time by 50%.

The listing will enable XDC to increase its ADC/bioconjugate services at a time when its slice of the greater drug development world is very strong. The IPO will create XDC’s own fundraising platform and allow the company to define its own business focus and strategy, WuXi added.

The Hong Kong offering has secured seven cornerstone investors, including Invesco, a US investment management company Invesco; General Atlantic, a private-equity firm; and Qatar Investment Authority, a sovereign-wealth fund.

After the listing, WuXi Biologics will reduce its stake in WuXi XDC to 50.9%. Wuxi AppTec’s 40% stake will fall to just under 34% per cent.

This story was first published in ChinaBio Today on November 7, 2023