Chinese biotech giant Wuxi AppTec sees first-half earnings surge amid US scrutiny

WuXi AppTec, a major provider of contract pharmaceutical research in Asia, reported a remarkable surge in first-half earnings in the year 2026. The Shanghai-based drug contractor's interim net profit attributable to owners nearly tripled, closing at 11.08 billion yuan (1.64 billion US dollars) after increasing by 33.7 per cent from the previous year.

Analysts' predictions, which hovered around a 14.5 per cent growth, were far surpassed by the actual results. The company's new order intake saw a substantial rise of over 40 per cent year-on-year, according to the CFO, Florence Shi.

WuXi AppTec is strategically expanding its manufacturing capacity for active pharmaceutical ingredients (APIs) in Singapore and exploring multiple overseas sites for potential API expansion. The company has revised its 2026 revenue target to a range of 58.5 billion yuan to 60.5 billion yuan, up from the previous forecast of 51.3 billion yuan to 53 billion yuan for the year. Li Ge, the chairman and CEO, attributed the strong performance to robust commercial momentum across various client drug programs.

The company's shares on the Hong Kong Stock Exchange rose by 1.37 per cent to HK$162.90 in Monday's trading, marking a 62 per cent increase year-to-date. The Hang Seng Index, Hong Kong's benchmark, also saw a 0.48 per cent rise. WuXi AppTec's total revenue for the first half of 2026 stood at 28.9 billion yuan, reflecting a 38.9 per cent growth compared to the same period a year ago. The company's sales in the United States soared to 22.28 billion yuan, comprising about 77 per cent of its total revenue for the period.

WuXi AppTec's "tides" business, which specializes in GLP-1 peptides, has been its primary growth engine since 2022. Revenue from this segment surged by 44.3 per cent year-on-year to 7.26 billion yuan in the first half of 2026, with projections of a 45 per cent growth for the full year. The company has found itself in the midst of US scrutiny, as it was recently placed on the 2026 Section 1260H list of alleged "Chinese military companies" by the US Department of Defence.

This designation could potentially affect the firm's eligibility for future US government contracts under the Biosecure Act. WuXi AppTec has challenged the designation in court, asserting that it is unjustified by facts or law. The legal action follows a broader US crackdown on China's biotech sector, with the House Select Committee on China launching an investigation into five major American drug makers concerning clinical trials conducted at Chinese hospitals and in Xinjiang.