BRIEF—Wuxi Biologics shares slide on lower profit guidance

Shares of Wuxi Biologics (Cayman) were halted in Hong Kong after sliding 24% on guidance for lower profit and weaker-than-expected revenue, reported US financial services company Morningstar analyst Ben Otto.

The Chinese contract drugmaker's shares were down to HK$3.15 on Monday, on track for their biggest one-day slide since listing in 2017. The stock has fallen 45% this year.

The drop came after Wuxi Biologics said it expects a weaker bottom line this year due mainly to spending on capacity expansion and lower revenue growth.

Revenue growth will fall short of a 30% target, with 40 fewer projects meaning a revenue gap of about $300 million and delays in regulatory approval affecting an additional $100 million, it said in presentation slides on its website.

A goal to add 120 new projects this year was "overtly bullish," it said. The company added 91 new projects through November, compared with 138 and 136 for 2021 and 2022, respectively.