China's WuXi AppTec nine-month revenue rises on chemistry segment growth; lifts 2026 outlook

Overview

• China pharma R&D services firm's nine-month revenue rose 39% year-over-year

• Adjusted non-IFRS net profit attributable to owners increased sharply year-over-year

• Company raised full-year revenue and adjusted free cash flow guidance for 2026

Outlook

• WuXi AppTec raises 2026 total revenue guidance to RMB61.0-61.9 bln from RMB58.5-60.5 bln

• Company now expects 2026 continuing operations revenue to grow 40%-42% YoY

• WuXi AppTec raises 2026 adjusted free cash flow forecast to RMB14.5-15.5 bln from RMB13.5-14.5 bln

Result Drivers

• CHEMISTRY SEGMENT - Co said strong growth in WuXi Chemistry was driven by pipeline progression to late stages and ramp-up of new capacity

• TIDES MODALITIES - Co said rapid growth in TIDES business was supported by increased customer and molecule counts

• DRUG SAFETY SERVICES - Co said drug safety evaluation services contributed to WuXi Testing segment growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for WuXi AppTec Co., Ltd. is CNY185.25, about 26.9% above its October 26 closing price of CNY146.00

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)