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WuXi Biologics Reassures Investors Over US Blacklist

Shares plunged nearly 20% on Wednesday after a report that Washington was considering blacklisting Chinese biotechnology groups

China allowed a US export control officer to inspect a Wuxi Biologics facility last week, which could help the firm get off a trade blacklist.
A US congressional committee focused on China introduced a bill last week that would restrict federally funded medical providers from contacting WuXi AppTec and other Chinese biotech companies, because of Wuxi AppTec's military ties. Photo: Wuxi Biologics.

Chinese biotechnology group WuXi Biologics on Thursday sought to reassure investors by saying it might repurchase up to $500 million in shares after worries that the company would be included in a US blacklist.

Hong Kong-listed WuXi said on Thursday it had noted “unusual price and trading volume movements” in its shares but underlined that it was not aware of any internal information that it needed to disclose.

‘The company is not aware of any change in the regulatory regime which may result in material negative impact on the business operations,” WuXi said in a Hong Kong stock exchange filing.

Its shares plunged nearly 20% on Wednesday after the Financial Times reported that Washington was considering adding Chinese biotechnology groups to a Commerce Department export ban list.

A listing would bar US companies from exporting technologies or products developed within the US to the Chinese groups without a licence.

“The company will continue to strive for enabling its business partners and has full confidence in strong growth prospects,” WuXi said in a filing to the Hong Kong stock exchange,”

It added that it would exercise a resolution that authorises it to purchase up to 10% of shares issued, and that it might make repurchases of up to $500m.

The reassurances helped to send WuXi’s shares back up as much as 10.8% on Thursday.


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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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