WuXi AppTec H Shares Rise 9.7%; Largest Gain Since February 2025

China's biopharmaceutical companies are set for rapid earnings growth from 2026, driven by greater globalization and improving operating efficiency, UOB Kay Hian analysts Carol Dou and Sunny Chen say in a note. They expect margin expansion from drug innovators, supported by their licensing income, better cost structures and overseas growth, and they like BeOne Medicines, Innovent and Hansoh Pharma in that segment. Contract research, development and manufacturing organizations should see stronger earnings and rising demand in 2026, with WuXi AppTec and WuXi Bio favored. Internet healthcare leaders with stable business models and AI adoption are also expected to deliver solid compound annual earnings growth through 2027, with Ali Health preferred for its synergies with Alibaba and attractive valuation. UOB KH maintains an overweight call on China's healthcare sector. (jason.chau@wsj.com)

WuXi AppTec keeps its bull at Nomura after its 3Q profit beat analysts' consensus estimate. The Chinese pharmaceutical services company raised its 2025 revenue and plans to spend less on capital expenditure, analyst Jialin Zhang says in a note. The company also agreed to sell its Chinese clinical research services unit, he says. The analyst raised his 2025 and 2026 earnings projections by 33.5% and 33.3%, respectively, to reflect factors such as enhanced efficiency and the unit disposal. Nomura reaffirms its buy rating and raises its target on WuXi AppTec's Hong Kong stock to HK$130.63 from HK$102.77. Nomura also raises its target on its Shanghai-listed shares to CNY118.83 from CNY93.49. Shares were last at HK$114.30 in Hong Kong and CNY105.73 in China. (megan.cheah@wsj.com)

Revenue rose 18.6% year-over-year to RMB32.86 billion, with net profit attributable to owners up 84.8% to RMB12.08 billion, driven by strong CRDMO growth and one-time gains. Full-year revenue guidance was raised to RMB43.5–44.0 billion.

Original document: WuXi AppTec Co., Ltd. Class A [603259] Interim report — Oct. 27 2025

By Jason Chau

WuXi AppTec's shares rose Monday morning after the Chinese pharmaceutical company reported strong third-quarter earnings and again raised its guidance for the year.

The stock rose more than 7% in Hong Kong and 6% in Shanghai before paring gains. H-shares were last at HK$116.60, while A-shares were at CNY106.98.

That came after the Shanghai-based drugmaker, which provides services including drug research and discovery, posted a 83% on-year rise in quarterly net profit. Revenue climbed 15%.

WuXi attributed the results to the performance of its core contract research, development, and manufacturing business, noting continued revenue growth and improved efficiency in late-stage clinical and commercialization projects.

It also booked gains from the partial divestment of its cancer treatment-focused subsidiary, a filing showed.

Expressing confidence in the outlook for demand for its services and CRDMO business model, the company said it has further raised its full-year guidance. WuXi now sees annual revenue from continuing operations at 43.5 billion yuan to 44.0 billion yuan, up 17% to 18%.

The strategic divestment of clinical research services is another plus, letting the firm focus fully on CRDMO, said chairman and chief executive Dr. Ge Li.

Earlier this month, it sold two clinical research units to Asia-focused private-equity firm Hillhouse Investment Management.

Citi analysts estimate that gains from the sale could exceed 10% of the company's 2024 net profit. They maintained a buy call on WuXi's stock.

Write to Jason Chau at jason.chau@wsj.com

By Jason Chau

WuXi AppTec's shares rose Monday morning after the Chinese pharmaceutical company reported strong third-quarter earnings and again raised its guidance for the year.

The stock rose more than 7% in Hong Kong and 6% in Shanghai before paring gains. H-shares were last at HK$116.60, while A-shares were at CNY106.98.

That came after the Shanghai-based drugmaker, which provides services including drug research and discovery, posted a 83% on-year rise in quarterly net profit. Revenue climbed 15%.

WuXi attributed the results to the performance of its core contract research, development, and manufacturing business, noting continued revenue growth and improved efficiency in late-stage clinical and commercialization projects.

It also booked gains from the partial divestment of its cancer treatment-focused subsidiary, a filing showed.

Expressing confidence in the outlook for demand for its services and CRDMO business model, the company said it has further raised its full-year guidance. WuXi now sees annual revenue from continuing operations at 43.5 billion yuan to 44.0 billion yuan, up 17% to 18%.

The strategic divestment of clinical research services is another plus, letting the firm focus fully on CRDMO, said chairman and chief executive Dr. Ge Li.

Earlier this month, it sold two clinical research units to Asia-focused private-equity firm Hillhouse Investment Management.

Citi analysts estimate that gains from the sale could exceed 10% of the company's 2024 net profit. They maintained a buy call on WuXi's stock.

Write to Jason Chau at jason.chau@wsj.com