Wuxi AppTec reported a surge in orders for drug development and manufacturing amid a push by US lawmakers for global pharmaceutical companies to sever ties with the Chinese service provider, pushing the stock to a record gain.
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The Chinese drug research and contract manufacturer, in an investor presentation on Thursday, said its main chemistry business, which accounts for the bulk of the its revenue, remains robust, with increase in new projects and active customers in the first half of 2024.
The upbeat outlook sent the company’s shares higher in Hong Kong. It closed up 23.9 per cent on Friday, the most since its listing in 2018. The company’s shares listed in Shanghai also rose by the daily limit of 10 per cent. The broader market in Hong Kong also rose on Friday, with the Hang Seng Index adding 3.6 per cent.
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The presentation offered a rare insight into how Wuxi has fared under intense political pressure and suggests limited impact on its actual business.
Wuxi and four other Chinese life sciences firms are the target of US legislation in the works that seeks to blacklist them and their US subsidiaries from accessing federally funded contracts. The bill, which has passed the US House, needs Senate approval before it can be signed into law by the president.