FAST NEWS: WuXi AppTec Sees 65% Q2 Revenue Growth Despite Covid Disruptions
The latest: Pharmaceutical services outsourcing company WuXi AppTec Co. Ltd. (2359.HK; 603259.SH) forecast it will post yearly revenue growth of 63% to 65% in the second quarter, according to a business update released on Sunday.
Looking up: The company’s operations in Shanghai have resumed, following a two-month lockdown in the city. WuXi AppTec added it is confident of achieving full-year revenue growth of 65% to 70% as its business continuity plans are executed.
Take Note: The company reported 71.2% year-on-year revenue growth in the first quarter, meaning the second-quarter forecast represents a slowdown.
Digging Deeper: Founded in December 2000, WuXi AppTec is a Chinese pharmaceutical outsourcing services provider, covering the entire industry chain from drug discovery to commercialization. The company has grown rapidly on big demand from both foreign and domestic drug developers for outsourced R&D and manufacturing services for their activity in the fast-growing China market. The company’s second-quarter forecast would mark its ninth consecutive quarter of revenue growth.
Market Reaction: WuXi AppTec shares opened up 0.4% in Hong Kong on Monday and moved steadily higher from there, closing up 8.4% at HK$98.95 at the midday break. But the stock still trades near the low end of its 52-week range.
Translation by Jony Ho
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