appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Julie Zhang

US global asset managers, including BlackRock, have expanded stakes in mainland Chinese pharmaceutical contractor WuXi AppTec over the past two months, betting that a surge in weight-loss drug manufacturing orders will lift earnings in the first half of the year.
Global investors were increasingly interested in China’s contract development and manufacturing organisation, and biotechnology sector, said Linda Shu, head of China healthcare research at HSBC.
“WuXi Apptec is heavily owned given its high expectations” for the first half, Shu said.
JPMorgan Chase remained one of its largest shareholders after raising its stake to 11.39 per cent on July 20, up from 10.98 per cent, according to the Hong Kong stock exchange website.
Swiss banking giant UBS Group and BlackRock are also substantial shareholders, which refer to any investor holding an interest of 5 per cent or more in the voting shares of a listed company.
UBS bought 255,500 shares at an average price of HK$121.51, lifting its stake to 8.02 per cent on June 11. BlackRock purchased 1.52 million shares at an average price of HK$153, increasing its stake to 5.21 per cent on May 14.
WuXi AppTec was expected to release its half-year earnings results on August 3, according to the company. Its Hong Kong-traded stock jumped about 37 per cent over the period, bucking the broad decline in the Hang Seng Index.
Nomura said it expected the leading Chinese drug contractor to report a 10.9 per cent year-on-year earnings growth in the first six months.
WuXi AppTec was an “important” player globally in researching, developing and manufacturing diabetes and weight-loss drugs targeting gut hormone GLP-1, said Zhang Jialin, head of China healthcare research at Nomura.
The company was producing 23 programmes tied to GLP-1, accounting for about 26 per cent of the global late-stage pipeline, Zhang said.
GLP-1 treatments are surging in the Chinese market. Semaglutide, Novo Nordisk’s blockbuster drug which generated about US$34.6 billion in global sales last year, was added in July to China’s state-backed National Essential Drug List.
Eli Lilly’s tirzepatide was included in December on China’s national medical insurance reimbursement list, the state insurance scheme that swaps deep discounts for big volume.
As part of efforts to curb China’s rise in the global pharmaceutical supply chain, the US added WuXi AppTec to the military list, a designation that could restrict cross-border cooperation between US pharmaceutical companies and the Chinese drug manufacturer.
The inclusion was “erroneous and not supported by the facts”, a WuXi AppTec spokesperson said. “We believe that the facts, as demonstrated in our filings, will prevail after an objective and fair judicial review.”
“Some multinational pharmaceutical giants are having to reshuffle their supply chains away from China amid US-China tensions,” said Geoffrey Hsu, a general partner at the US-based investment firm OrbiMed, in a recent interview.
“They don’t want to be dependent upon China to supply drugs to the United States,” he said, referring to Washington’s concerns over drug supply security.
Hsu described decoupling as difficult and costly, adding it could take five to 10 years to gradually shift manufacturing away from China.


Mainland China’s stock exchanges mount charm offensive amid Hong Kong IPO boom

For China’s hi-tech IPOs, it’s Hong Kong vs the mainland – but how much does it matter?

Betting on People-First Banking

Will fresh incentives give China’s housing market more than a short-lived rebound?

Banking & finance

Wall Street funds back China’s WuXi AppTec as weight-loss drug orders soar

WuXi AppTec was expected to release its half-year earnings results on August 3. Photo: Handout

What’s at stake as Beijing beats global peers with first approval of novel therapy

China is pushing to accelerate novel drug reviews. Photo: Shutterstock

US biotech firm developing therapies for infant brain injuries plans Hong Kong listing

Axiom Biosciences joins a swelling roster of healthcare firms seeking IPO approval in Hong Kong. Photo: Shutterstock

Axiom would be the first biotech firm operating in the US to list in Hong Kong, according to Remo Moomiaie-Qajar. Photo: Handout

China’s drug industry pivots to AI-powered candidates to drive next wave of deals

A pharmaceutical manufacturing line. Photo: Shutterstock

Mainland China funds increase stakes in Hong Kong biotech amid surge of licensing deals

Hong Kong’s skyline is seen from The Peak on June 1. Photo: Karma Lo

Analysts say Hong Kong-listed pharmaceutical stocks are trading at attractive prices. Photo: Shutterstock

Business

Companies

China Business

News

China Future Tech

Biomedicine

Pharmaceutical contractor’s GLP-1 programmes and surging stock gains have made it a magnet for global investors


Pharmaceutical contractor’s GLP-1 programmes and surging stock gains have made it a magnet for global investors.


Wall Street funds back China’s WuXi AppTec as weight-loss drug orders soar

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Pharmaceutical contractor’s GLP-1 programmes and surging stock gains have made it a magnet for global investors

Pharmaceutical contractor’s GLP-1 programmes and surging stock gains have made it a magnet for global investors