China’s pharma contractors rally as US supply chain pressures face industry resistance
China’s pharmaceutical contractors are showing financial resilience in the face of Washington’s push to curb reliance on Chinese supply chains. Analysts said investors were bullish because the US government’s recent measures to curb Beijing’s rise as a global pharmaceutical supplier had met resistance from industry players reluctant to give up China’s cost advantages. Hong Kong-listed shares of…
China's pharmaceutical contractors are demonstrating financial strength amidst heightened US efforts to reduce dependency on Chinese supply chains. Market analysts express optimism as US measures have encountered resistance from industry stakeholders unwilling to abandon China's cost advantages. Hong Kong-listed WuXi AppTec, the country's largest contract pharmaceutical research provider, witnessed a 3% increase in shares on Monday, reaching a record high of HK$203.40.
Genscript Biotech, recognized as the globe's leading gene synthesis service provider, surged 4.8% to HK$26.08, recording a remarkable 203% year-on-year rise in adjusted net profit for the six months ended June 30, 2025. The surge was propelled by heightened demand for AI-driven gene-to-protein solutions tied to drug discovery. The company elevated its full-year guidance for its life science services segment, encompassing DNA, RNA, and peptide synthesis tools and protein production services, to a range of 25-30% for the year.
This segment contributes the majority of its revenue. CFO Phil Zhou anticipates a doubling of AI-driven drug discovery orders in the second half of the year, with sustained strength in the ensuing years. The company's revenue for the period grew by 27.3% year-on-year to approximately US$404.22 million, with North America accounting for roughly half of the total.
Established in the US in 2002, Genscript Biotech opened a research and manufacturing center in Nanjing, Jiangsu province, China, in 2004. The firm maintains sales teams in North America, Europe, China, Japan, and other regions in the Asia-Pacific area. Despite the potential challenges posed by escalating US-China tariffs and trade sanctions, Genscript Biotech anticipates growth this year, thanks to increased biotech funding in the US and Europe and intensified cooperation between Chinese biotech companies and multinational pharmaceutical giants.
However, the company warns that trade restrictions could dampen demand for its cross-border services, prompting diversification of its global service capabilities.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
