WuXi AppTec Faces Revenue Decline Amid Looming BIOSECURE Act Threat

1. Revenue Drop: WuXi AppTec reported a 1.2% decline in revenue from US clients, amounting to 10.7 billion yuan ($1.5 billion), in the first half of 2024, excluding Covid-19 projects.
2. Total Revenue: The company's total revenue fell 8.6% to 17.2 billion yuan, with net income dropping 20% to 4.24 billion yuan.
3. BIOSECURE Act Impact: The proposed bipartisan legislation aims to cut ties with Chinese biotechnology companies, including WuXi AppTec, which has been labeled a "company of concern".
4. Global Performance: While US revenue declined, WuXi AppTec saw revenue boosts in Europe (5.3%) and China (2.8%), but a significant drop in Japan, Korea, and other countries (17%).
5. Lobbying Efforts: WuXi AppTec has increased its lobbying efforts in the US to address the concerns and advocate for changes to the BIOSECURE Act.
6. CEO Statement: CEO Ge Li emphasized the company's commitment to enhancing its capabilities and capacity despite the uncertainty created by the proposed legislation.