(Yicai) Dec. 5 -- Shares in Wuxi Biologics Cayman continued its downward trajectory today after the Chinese biotech company retained its forecast of lower-than-expected revenue this year after trading was halted yesterday in anticipation of a further update on the situation.

Wuxi Biologics' share price [HKG:2269] closed down 8.4 percent at HKD30.35 (USD3.88) today. Earlier in the day it sank 12.3 percent to HKD29.05.

Yesterday the stock plummeted 23.8 percent after the company said that revenue could fall below its target of 30 percent growth this year due to the waning sales of its Covid-19 jabs.

The forecast remains unchanged, but the company is confident in its medium and long-term prospects, the vaccine maker said today.

The first half next year is likely to be difficult but there should be a gradual recovery in the second half, Wuxi Biologics said. The firm’s gross margin and growth rate should improve over the next few years. Growth will be stable next year and will return to strong increases in 2025 and beyond.

The main factors holding back growth are sluggish drug development and drug production, it said.

Wuxi Biologics set itself a target of adding 120 drug development projects early this year that turned out to be too aggressive, it said. A slowdown in biotech financing downturn led to 40 fewer new projects this year than last year, equivalent to losing CNY300 million (USD42 million) in revenue.

Delayed drug approvals and postponements from three big pharma firms in the second half also affected its revenue from drug production by around USD100 million.

Editor: Kim Taylor