By South China Morning Post | Created at 2024-10-04 10:10:05 | Updated at 2024-10-04 13:29:42
3 hours ago
Shares of WuXi AppTec and WuXi Biologics surged in Hong Kong on Friday, following a report that the two firms are looking to divest some of their operations in the wake of new United States legislation targeting Chinese biotech companies.
WuXi AppTec’s shares closed up almost 12 per cent to HK$67.10 on Friday, while shares of subsidiary WuXi Biologics rose nearly 15 per cent to HK$21.45.
Those gains were made after The Financial Times, citing people familiar with the matter, reported on Thursday that WuXi AppTec has put on the market its cell and gene therapy unit WuXi Advanced Therapies, which operates four laboratories and manufacturing facilities in Philadelphia, Pennsylvania.
According to the report, WuXi Biologics is working with advisers to gauge interest from potential bidders for its European production facilities, including two in Germany and one in Ireland.
Friday’s market performance comes weeks after the shares of WuXi AppTec and WuXi Biologics tumbled in Hong Kong after the US House of Representatives last month passed a bill that would restrict business with certain targeted Chinese biotech companies.
The reported divestment initiatives show the two companies’ efforts to head off the potential impact of the Biosecure Act, which must be approved by the US Senate before it goes to President Joe Biden for his signature.
