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Julie Zhang

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 WuXi AppTec, Asia’s largest provider of contract pharmaceutical research, gained 3 per cent on Monday to reach a new high of HK$203.40, while Genscript Biotech, the world’s largest gene synthesis service provider, rose 4.8 per cent to HK$26.08.
Genscript posted adjusted net profit of US$62.52 million for the six months ended June 30, a 203 per cent year-on-year surge, according to a filing with the Hong Kong stock exchange on Sunday. The growth was driven by accelerating demand for integrated gene-to-protein solutions tied to AI-driven drug discovery.
Genscript Biotech raised its full-year guidance for its life science service segment, covering DNA, RNA and peptide synthesis tools alongside protein production services, to a range of 25 to 30 per cent for the full year. The segment accounts for most of its revenue.
AI-driven drug discovery orders were expected to “double in the second half” and would remain strong over the next several years, chief financial officer Phil Zhou said on an earnings call.

Revenue for the period rose 27.3 per cent year on year to about US$404.22 million, with North America contributing about 50 per cent of the total.
Founded in the US in 2002, Genscript Biotech established a research and manufacturing centre in Nanjing, eastern China’s Jiangsu province, in 2004. It has sales teams in North America, Europe, China, Japan and other locations in the Asia-Pacific region, according to its prospectus.
The company said increased biotech funding in the US and Europe since 2025, along with greater collaboration between Chinese biotech firms and multinational pharmaceutical giants, was expected to support growth this year.
However, Genscript Biotech warned that escalating US-China tariffs and trade sanctions could dampen demand for its cross-border services, prompting it to diversify its global service capabilities.
In 2024 and again in 2025, US lawmakers asked the FBI to provide any information on whether the Communist Party had any influence over the company’s operations.
GenScript said no formal action or finding had ever been tied specifically to the company.
Washington targeted WuXi AppTec and four other Chinese biotech firms in the 2024 version of the Biosecure Act, but the names had been removed by the time the act was signed into law late last year.
However, tensions continued to simmer when the Pentagon added WuXi AppTec to its 2026 Section 1260H list of alleged “Chinese military companies”. The company sued the US Defence Department and won a preliminary injunction in August that temporarily blocked enforcement of the designation.
The latest “ruling relieves us from the immediate adverse consequences of the erroneous 1260H designation during the litigation process”, said a WuXi AppTec spokesperson on August 8. The company’s interim net profit in 2026 advanced 33.7 per cent to 11.08 billion yuan (US$1.64 billion) from a year earlier.
WuXi AppTec was “too big to ban”, said Tony Ren, head of Asia Healthcare Research at Macquarie Capital, in a report dated August 10. “Banning WuXi AppTec would be difficult without severe supply chain disruptions that could jeopardise patients.”


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Genscript posted adjusted net profit of US$62.52 million for the six months ended June 30, a 203 per cent year-on-year surge


Genscript posted adjusted net profit of US$62.52 million for the six months ended June 30, a 203 per cent year-on-year surge.


China’s pharma contractors rally as US supply chain pressures face industry resistance

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Genscript posted adjusted net profit of US$62.52 million for the six months ended June 30, a 203 per cent year-on-year surge

Genscript posted adjusted net profit of US$62.52 million for the six months ended June 30, a 203 per cent year-on-year surge