Wuxi Biologics faces headwinds in the next two years, as the biotech industry makes a slow recovery in a high interest-rate environment, UOB Kay Hian analysts say. The company's shares have tumbled since it cut its 2023 revenue guidance to 10% from 30%. The analysts expect Wuxi Bio to post double-digit revenue and profit growth for 2024 and are more conservative on its 2025 outlook as the industry lacks growth catalysts. The company may also come under significant margin pressure in the next two years due to lower-than-expected new project numbers in 2023 and delays in mega projects, the analysts add. UOB Kay Hian cuts Wuxi Bio's rating to sell from hold and lower its target price to HK$22.00 from HK$47.00 given the much lower guidance.