Chinese biotech giant Wuxi AppTec sees first-half earnings surge amid US scrutiny
Wuxi AppTec, Asia’s largest provider of contract pharmaceutical research, posted net income that smashed market expectations in the first half of the year amid strong demand tied to weight-loss and diabetes drugs, as well as gains in its US business. Interim net profit attributable to the owners of the Shanghai-based drug contractor advanced 33.7 per cent to 11.08 billion yuan (US$1.64 billion)…
Wuxi AppTec, Asia's leading contract pharmaceutical research provider, reported a staggering 33.7% surge in net income for the first half of 2026, reaching 11.08 billion yuan (1.64 billion USD) – exceeding the 14.5% consensus estimate from 25 analysts. Driven by strong demand for weight-loss and diabetes drugs, the company's revenue jumped 38.9% year-on-year to 28.9 billion yuan.
US revenue accounted for 77% of the total, growing to 22.28 billion yuan, up from 14.24 billion yuan in the same period last year. Chairman and CEO Li Ge stated, "We delivered strong growth across revenue, profit and cash flow" in a Monday statement. The company's "tides" business, specializing in GLP-1 peptides, saw a 44.3% year-on-year growth to 7.26 billion yuan.
However, Wuxi AppTec finds itself in the crosshairs of US efforts to curb China's biotechnology ambitions. In June, the US Department of Defense listed the company on its 2026 Section 1260H list of alleged "Chinese military companies," potentially jeopardizing future US government contracts. Wuxi AppTec sued the US Department of Defense for the erroneous designation.
This comes amid a broader US crackdown on China's biotech sector, with the House Select Committee on China investigating five major American drug makers for clinical trials conducted at People's Liberation Army hospitals and in Xinjiang Uygur.
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