Zhi Tong Cai Jing·2025-09-29 06:01Core Viewpoint - Morgan Stanley expects that the new drug tariff policy will not have a direct impact on Chinese CDMO companies like WuXi AppTec, as clients typically bear the tariff costs, and WuXi AppTec is expanding its production capacity in the U.S. to meet local production demands [1] Group 1: Company Analysis - WuXi AppTec is identified as the largest contract research and manufacturing organization in China, with strong business fundamentals [1] - The competition in the small molecule CRDMO sector is considered relatively mild, which bodes well for WuXi AppTec's market position [1] - The growth momentum of WuXi AppTec's TIDES business remains robust, indicating a positive outlook for the company's future performance [1] Group 2: Market Outlook - Morgan Stanley maintains an "Overweight" rating on WuXi AppTec, with a target price set at HKD 138 [1] - The report follows the announcement by former President Trump regarding a 100% tariff on imported brand-name and patented drugs starting October 1, unless related manufacturers have begun construction of production facilities in the U.S. [1]