U.S. Sanctions on WuXi AppTec, Wuxi Biologics Look Unlikely -- Market Talk

Dow Jones03-05

0312 GMT - U.S. sanctions on WuXi AppTec and Wuxi Biologics look unlikely, Jefferies analysts write in a research note, highlighting that President Biden's recent executive order focused only on the transfer of personal data and not on a decoupling from other countries. The U.S. also appears more concerned about bio-weapons, they add, and it may be costly for the U.S. to remove China from bio-manufacturing in the country. Investors may be waiting until 2H 2024 or 1H 2025 before adding WuXi AppTec and Wuxi Biologics back as core holdings as trade in the shares is likely to stay volatile this year, particularly ahead of the U.S. presidential elections. WuXi AppTec, is 3.45% lower while Wuxi Biologics falls 3.8%. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

March 04, 2024 22:12 ET (03:12 GMT)

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