WXIBF - Harding Loevner - WuXi Biologics: Sporting A 100x Forward Price-To-Earnings Multiple
- We had previously owned WuXi Biologic shares but sold it in the second quarter of 2019.
- We bought back WXIBF stock after a sharp price correction in the first quarter of 2021.
- The rapid development of several antibody drugs for COVID-19 gave a further, unexpected boost to WuXi’s business recently.
- WuXi’s share price tanked despite the positive surprise of an 83% year- over-year increase in revenue growth and a doubling of the company’s adjusted net profits.
- Our read of WuXi’s sales growth has, if anything, proven too conservative in the near term, while its execution has been solid.
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Harding Loevner - WuXi Biologics: Sporting A 100x Forward Price-To-Earnings Multiple