Shares of WUXI APPTEC Co., Ltd (02359.HK) surged 16.21% on Thursday, following reports that the Chinese biotech firm and its related companies are considering divesting certain assets in response to potential U.S. restrictions.
According to a Financial Times report, WUXI APPTEC is exploring the sale of its WUXI Advanced Therapies unit, which manufactures cell and gene therapies and has operations in the United States. The report also indicated that WUXI Biologics, a related company, is gauging interest in its European production facilities.
These reported asset sale plans come as the U.S. House of Representatives recently passed a draft of the Biosecure Act, which designates the WUXI companies as "biotechnology companies of concern" due to alleged military ties. If enacted, the legislation could bar U.S. government agencies from using funding or making contracts that involve certain biotechnology equipment or services from designated companies like WUXI.
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