Daily Brief Health Care: Wuxi Biologics, Jiangsu Hengrui Pharmaceuticals, Nexalin Technology , BirchBioMed, City Therapeutics and more

• WuXi Bio launched a Placement,aiming to raise up to US$500mn.After a significant surge, selling shares at this share price level indicates a feature of cashing out at a high price. 
• Based on HK$51.77-52.31 and 2026 forecast, P/E is 32-33x, higher than our estimate 25-30x P/E.This means the market has already priced in most of growth for WuXi Bio this year.
• Although Wuxi’s affiliated companies have demonstrated solid fundamentals and signs of valuation recovery since 2025, the share reduction by major shareholders has still weakened market confidence in their long-term value

• Jiangsu Hengrui Pharmaceuticals (1276 HK) entered into a license agreement with Novo Nordisk for obesity drug candidate HRS-1596, with potential for once-weekly oral dosing for total deal value of $2.6B.
• The company is expected to launch GLP-1/GIP injectable ribupatide (HRS9531) in early 2027. If launched, injectable ribupatide will be third drug of its class in China market.
• With near-to-market GLP-1 anchor assets, Hengrui is ready to build a leading obesity franchise in China. Although obesity market is competitive, China market is large enough to accommodate multiple players.

• Commercial traction remains constrained by zero insurance reimbursement and low volume, with Q2 2026 revenue printing at just $12.16 thousand despite international distribution agreements.
• The company faces an acute balance sheet wall: with roughly $1.0 million in cash as of mid-2026 against a quarterly cash burn of $1.7 million to $1.8 million, raising capital is an immediate operational requirement.
• While Nasdaq minimum bid price compliance was restored in October 2026 via a 1-for-30 reverse stock split, the business must satisfy Nasdaq’s $2.5 million stockholders’ equity requirement by January 4, 2027, forcing near-term dilutive equity or non-dilutive licensing choices.

• BirchBioMed Inc. is a clinical stage biopharmaceutical company developing treatments for scarring, skin disorders, autoimmune diseases, and organ fibrosis.
• BirchBioMed completed a Phase 1 clinical trial for FS2 in 2018 and received U.S. FDA Orphan Drug Designation for FS2 in November 2025.
• The company reported cash and cash equivalents of $3,086,484 as of June 30, 2026, alongside a net loss of $(1,249,402) for the six months then ended.

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• City Therapeutics, Inc. is a clinical-stage biotechnology company developing RNA interference therapeutics to silence disease-relevant proteins, leveraging its City Platform.
• City Therapeutics advanced three programs into or toward the clinic since July 2023, with CITY-FXI Phase 1 data showing 85% FXI knockdown.
• The company reported collaboration revenue of $6,358 thousand for six months ended June 30, 2026, alongside a net loss of $(53,443) thousand.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.