2 1 Shi Ji Jing Ji Bao Dao·2025-10-27 07:02Core Viewpoint - WuXi AppTec is divesting its clinical research services business for 2.8 billion yuan to focus on its core CRDMO (Contract Research, Development, and Manufacturing) strategy, which is expected to enhance its global capabilities and production capacity [1][3][6]. Business Divestiture - The company announced the sale of 100% equity in its subsidiaries, Shanghai Kangde Hongyi Medical Clinical Research Co., Ltd. and Shanghai WuXi Jishi Pharmaceutical Technology Co., Ltd., for 2.8 billion yuan to a newly established company under Hillhouse Capital [1][4]. - Kangde Hongyi reported revenues of 291 million yuan and 186 million yuan for 2024 and the first three quarters of 2025, respectively, with net losses of 42 million yuan and 75 million yuan during the same periods [5][6]. - In contrast, WuXi Jishi showed stable performance with revenues of 1.338 billion yuan and 979 million yuan for 2024 and the first three quarters of 2025, respectively, and net profits of 313 million yuan and 162 million yuan [5][6]. Financial Impact - The combined revenue contribution of the two companies was approximately 1.16 billion yuan for the first nine months of 2025, accounting for about 3.5% of WuXi AppTec's total revenue during that period [6]. - The company anticipates that the transaction will yield a profit exceeding 10% of its most recent audited net profit, which could translate to approximately 945 million yuan based on a net profit of 9.45 billion yuan for 2024 [8]. Strategic Focus - The divestiture aligns with WuXi AppTec's ongoing strategy to streamline operations and concentrate on its CRDMO core business, which includes drug discovery, laboratory testing, and process development and manufacturing services [3][6]. - The company has previously engaged in similar asset sales to enhance its focus on CRDMO, including the sale of its WuXi ATU business in late 2024 [9]. Market Reaction - Following the announcement, WuXi AppTec's stock saw a significant increase, with A-shares rising over 6% and H-shares increasing by over 7% on October 27 [3]. Performance Update - For the first three quarters of 2025, WuXi AppTec reported revenues of 32.857 billion yuan, a year-on-year increase of 18.61%, and a net profit of 12.076 billion yuan, reflecting an 84.84% growth [11]. - The company has raised its full-year performance guidance for 2025, expecting revenue growth to return to double digits, adjusting the growth rate from 13-17% to 17-18% [11].