Chinese stocks: Wuxi WuXi AppTec New Drug Development Co., Ltd. (WX) (2000)

WuXi PharmaTech (Cayman) Inc. (NYSE:WX) was founded in 2000 and is headquartered in Shanghai, China, with 8,837 full-time employees. It is a leading provider of drug R&D and production services in China.

WuXi PharmaTech Logo

Wuxi Wuxi AppTec New Drug Development Co., Ltd. (WX):

WuXi AppTec WX is the world’s leading pharmaceutical, biotechnology and medical device R&D capabilities and technology platform company, providing innovative pharmaceutical R&D services to customers around the world. As a new drug research and development company, WuXi AppTec provides a series of comprehensive laboratory R&D, research and production services to global pharmaceutical companies, biotechnology companies and medical device companies, covering the entire process from drug discovery to market launch.

History of WuXi AppTec:

  • In 2000, the company was established
  • In 2006, Tianjin branch was established
  • On August 9, 2007, listed on the New York Stock Exchange (issue price of $14 per share)
  • In 2008, acquired AppTec of the United States
  • In 2009, the Suzhou branch was established and the Suzhou Toxicology Service Base was established
  • In 2011, WuXi AppTec Gene Center was established
  • In 2011, it acquired Pocky Bio
  • In 2011, acquired Jinshi Jiecheng Company
  • In 2011, Wuhan branch was established
  • 2012 Established Wuxi branch and established China’s first cGMP biological R&D and production base

Wuxi PharmaTech New Drug Development Co., Ltd. (WX) investment:

The following content is taken from Xueqiu US stocks:

WuXi AppTec (WX) initiated a privatization invitation in April by the company’s chairman and CEO Li Ge and the world-renowned medical asset management giant Ally Bridge Group Capital Partners (ABG) at a price of US$46/ADS , The purchase price is only 15% premium to the closing price of the previous trading day. As of the close of the market on June 5, WuXi AppTec was quoted at US$43.55/ADS. There is about 5.6% arbitrage space from the initial tender price of US$46. It is recommended that Shell pay attention to WuXi AppTec’s privatization arbitrage opportunities. The main reasons are as follows:

1. There is still 5.6% arbitrage space, and WuXi AppTec’s trading volume is not bad. After the announcement of the privatization news, the average daily trading volume is about 400,000 to 500,000 shares, and the stock price is more than US$40, which is relatively low compared to other privatizations. Said that the turnover is not bad;

2. Privatization should be very reliable. First of all, WuXi AppTec is indeed a leading company in the Chinese pharmaceutical industry. In 2014, its revenue increased by 16.6% to US$674 million and its net profit was US$112 million. The second was WuXi. Kang Tak previously split its subsidiary business Hequan Pharmaceuticals and listed on the NEEQ. The valuation of this business on the NEEQ is close to the total valuation of WuXi AppTec in the US stocks, indicating that WuXi AppTec’s popularity in China is huge. Privatization motivation;

3. The initiator of the privatization is awesome. In addition to the CEO, there is also Bridge Capital (ABG), which is a very strong industry fund in the pharmaceutical field. In addition, on May 14, another Fork-backed investment institution Boyu Capital Fund II, LP (if you don’t know this institution, please move to Baidu), joined the bidder. Given the strong financial strength and background of these two institutions, WuXi AppTec’s privatization should not Will be too difficult

4. The price increase is expected to be a high probability event. In addition, I estimate that WuXi AppTec’s privatization price increase should be a very high probability event. The main reason is that the privatization premium is not high, only 15%. However, looking at WuXi AppTec’s shareholder structure, I found that their shareholder structure is very scattered. CEO Li Ge only owns 1.4% of the shares, another executive Zhaohui Zhang only has 1.1%, and other management ignores it. The two bidding bidders did not hold shares before. The top three shareholders of WuXi AppTec are all major international funds. Yes: Fidelity 10%, Schroder Investment Management 9.2%, Wellington Asset Management 7.5%, these are long-term funds with strong capital, and their influence in the international capital market is very large. The shareholding ratio of these three companies is close to 30%, plus some other major shareholders who hold more than 5% of the shares (checked from the Nasdaq official website, there is also a Matthews International MATTHEWS holding about 5%), it is difficult to pass a vote without raising the price , So I judge the submission should be a high probability event.

Wuxi Apptec official website:

WuXi AppTec market trend:

WuXi AppTec US Stock Encyclopedia:

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