Nomura: Wuxi Bio wins up to 37 biosimilar development projects, with manufacturing orders the next focus

How many development opportunities does the agreement bring?

On 2 November, Fresenius announced that it had signed an exclusive development agreement with Wuxi Bio covering up to 37 biosimilar candidates over the next decade. The agreement could expand Fresenius’s portfolio of marketed and pipeline products from 29 molecules to 66.
Wuxi Bio will receive service fees for selected projects, while Fresenius retains global commercialization rights. Fresenius disclosed that the initial development projects include polatuzumab vedotin and teprotumumab.

Wuxi Bio has emphasized its biosimilars business since 2025 and had 17 related projects as of the end of June 2026. Nomura believes the new agreement further validates the company’s development capabilities and could support long-term demand for services as the projects progress.
The client’s own business is also growing: Fresenius’s biopharmaceutical business recorded sales of 498 million euros in the first half of 2026, with organic growth of 36% year over year, driven mainly by the rollout of Tyenne and denosumab biosimilars.

The agreement currently generates development service fees. Nomura believes the financial contribution will be more significant if the candidates succeed and Fresenius awards their commercial manufacturing orders to Wuxi Bio; whether the company can continue to manufacture these products depends on subsequent manufacturing arrangements.
Nomura maintains its buy rating and HK$60.22 target price for Wuxi Bio; the stock closed at HK$44.60 on 2 November 2026. The target price uses a discounted cash flow model, assuming a weighted average cost of capital of 10.1% and a perpetual growth rate of 4.0%.