WuXi AppTec sells clinical research assets for 2.8 bn yuan

WuXi AppTec, through its wholly-owned subsidiary Shanghai WuXi AppTec, is divesting its entire 100% equity in Shanghai Kangde Hongyi Medical Clinical Research Co., Ltd. and Shanghai WuXi Jinshi Medical Technology Co., Ltd. to Shanghai Shiherong Enterprise Management Consulting Co., Ltd. and Shanghai Shihemue Enterprise Management Consulting Co., Ltd., both affiliates of HighLight Capital. The base equity transfer price for this transaction is 2.8 billion yuan, with the final price subject to adjustments based on working capital, cash debt, and performance from 2026 to 2028.

This transaction is a strategic move to refocus on WuXi AppTec's core CRDMO (Contract Research, Development, and Manufacturing Organization) business model, prioritizing drug discovery, laboratory testing, and process development and production services. The target companies, primarily involved in clinical research services, will no longer be part of WuXi AppTec's consolidated financial statements upon completion of the transaction. The sale is expected to positively impact WuXi AppTec’s 2025 net profit, with preliminary estimates suggesting a contribution exceeding 10% of the company's most recent audited net profit. The transaction requires government approvals, including anti-monopoly review, and fulfillment of payment conditions before final settlement.