FAST NEWS: Wuxi Bio’s Subsidiary Removed from U.S. ‘Unverified’ List
The latest: Contract drug services provider WuXi Biologics (Cayman) Inc. (2269.HK) announced on Monday its WuXi Biologics Co. Ltd. subsidiary has been removed from the “unverified” list maintained by the U.S. Commerce Department, following the department’s completion of an on-site end-use check visit, in coordination with China’s Ministry of Commerce.
Looking up: The company said it has always operated with the highest compliance standards in accordance with legal requirements, and has full confidence in its strong growth prospects.
Take Note: The company remains committed to working with the U.S. to have its other subsidiary, WuXi Biologics (Shanghai) Co. Ltd., removed from the same unverified list.
Digging Deeper: Founded in 2010, WuXi Biologics is a subsidiary of WuXi AppTec (2359.HK), which was spun off and listed in Hong Kong in 2017, mainly engaged in contract drug research with operations in Shanghai, Wuxi and Suzhou. The company has been under a cloud since February when its Chinese facilities were added to the U.S. Commerce Department’s unverified list for closer trade scrutiny. Placement on the list required U.S. suppliers to its facilities in Wuxi and Shanghai to get special licenses in order to sell their goods to the company. In early July, WuXi Biologics said U.S. inspectors had finished checks of its Wuxi facility and were about to review the one in Shanghai. Credit Suisse believes the other facility is also likely to be removed from the list later this year after the inspections are completed.
Market Reaction: Shares of WuXi Biologics initially rose on Monday, but later gave back those gains and closed down 2.5% on the day. They continued to drop in early Tuesday trade, closing down another 2% to HK$46.05 at the midday break. The stock currently trades near the lower end of its 52-week range.
Translation by Jony Ho
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