FAST NEWS: U.S. investment firm boosts WuXi AppTec stake

The latest: The Capital Group, a U.S. asset manager, disclosed it purchase 2.52 million Hong Kong-listed shares of WuXi AppTec Co. Ltd. (2359.HK; 603259.SH) for HK$177 million ($20.8 million), raising its stake in the drug outsourcing services company from 4.65% to 5.27%, according to a new Hong Kong Stock Exchange filing.

Looking up: WuXi AppTec recently reported strong revenue and profit gains in the first quarter, and thus Capital Group’s stake increase could reflect growing confidence in the company’s prospects.

Take Note: Capital Group’s shareholding in WuXi AppTec now exceeds the 5% threshold that requires disclosures of any changes in its holdings, meaning it will need to publicly disclose any future increases or decreases in the shareholding.

Digging Deeper: Founded in 2000 and listed in Hong Kong and Shanghai in 2018, WuXi AppTec is a provider of pharmaceutical outsourcing services (CXO) covering the entire industry chain from drug discovery to commercialization. The company has steadily expanded its business in recent years and recorded 13 consecutive quarters of year-on-year revenue growth, drawing on growing demand for its R&D and manufacturing services both at home and overseas.

Market Reaction: WuXi AppTec shares rose in early trading on Thursday and closed up 4.9% at HK$72.40 by the midday break. But the shares still trade close to their 52 week low.

Translation by Jony Ho

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