WuXi XDC Plans $470.5M IPO to Drive Global Manufacturing Expansion

WuXi XDC's $470.5M IPO to Expand Manufacturing Globally

WuXi’s spinoff venture, WuXi XDC, is poised to make its debut on the Hong Kong Stock Exchange later this month, with a primary objective of channeling substantial proceeds into its Asian manufacturing network.

WuXi XDC plans to offer 178.45 million shares in an upcoming Initial Public Offering (IPO), with the goal of raising 3.68 billion Hong Kong dollars (equivalent to $470.5 million), as indicated in a prospectus filing (PDF). Trading of the stock is scheduled to commence on the Hong Kong Exchange on November 17.

The bulk of the funds generated by WuXi XDC will be reinvested in the company’s manufacturing facilities situated in WuXi, China, and Singapore. In WuXi, the company aims to enhance its capabilities and capacity to encompass a full spectrum of operations, ranging from antibody intermediates to drug products. The ultimate objective is to attain self-sufficiency and develop sufficient capacity to handle multiple late-stage projects.

In particular, WuXi XDC has disclosed plans for constructing additional facilities in WuXi dedicated to clinical or commercial manufacturing. This includes the establishment of a new production line and reaction kettles capable of accommodating projects spanning from 5 liters to 100 liters.

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Singapore also figures prominently in WuXi XDC’s expansion strategy, with the intention of establishing a manufacturing base and implementing a global dual sourcing strategy. The company has outlined plans for four production lines in Singapore, catering to both clinical and commercial manufacturing. WuXi XDC has commenced the design process for the Singapore site and aims to initiate manufacturing operations there by 2026.

The spinoff plans of WuXi XDC were initially announced by WuXi Bio and WuXi STA in July. As an independent entity, WuXi XDC will specialize in contract research, development, and manufacturing of bioconjugates, encompassing antibody-drug conjugates (ADCs), antibodies, and other biologic intermediates, as per the companies’ statement.

After focusing on ADCs, WuXi XDC has outlined its intention to expand its capabilities to include all bioconjugates, such as peptide conjugates, oligo conjugates, and chemical conjugates, a move indicated during the summer.

WuXi XDC will continue to be a subsidiary of WuXi Bio, and its financial performance will remain incorporated into WuXi Bio’s earnings statements. For the fiscal year ending on December 31, 2022, WuXi XDC’s revenue contributed to approximately 6.5% of WuXi Bio’s overall sales.

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