(Yicai Global) July 10 -- Shares of WuXi Biologics rose after the Chinese drug developer said it intends to spin off a subsidiary that is the world’s second-largest maker of bioconjugates that kill cancer cells for a listing in Hong Kong.

WuXi Biologics [HKG: 2269] moved up as much as 3.8 percent intraday and closed 0.5 percent higher at HKD38 (USD4.90).

The contract research development and manufacturing organization will spin out WuXi XDC to list it on the main board of the Hong Kong Stock Exchange to help the company gradually expand its business scope from antibody-drug conjugates to all types of bioconjugates to grasp global market opportunities, the Wuxi-based firm said in a statement yesterday.

Not wasting time, WuXi XDC submitted its first prospectus. The raised funds would be used to establish an 18,500-square-meter manufacturing base in Singapore to meet global demand and also to expand the firm's production in China.

WuXi XDC is a joint venture established by WuXi Biologics and WuXi AppTec in 2020 with a 60:40 shareholding ratio, respectively. The JV is the world’s second-largest and China’s biggest manufacturer of antibody-drug conjugates based on sales of last year, the prospectus shows, citing Frost & Sullivan.

Last year, WuXi XDC recorded a net profit of CNY155.7 million (USD21.5 million), almost tripling from 2021, per the document. Revenue grew more than threefold to CNY990.4 million.

Editor: Emmi Laine