A U.S. federal judge has blocked the Defense Department from enforcing a designation that placed Wuxi Apptec on a list of Chinese military companies, temporarily removing a major regulatory hurdle for the Chinese contract research organization.

On Friday, U.S. District Judge James E. Boasberg in Washington, D.C., granted Wuxi Apptec's motion for a preliminary injunction, ruling that the company had demonstrated the decision to include it on the list was "likely arbitrary and capricious." The court also found that the designation had caused irreparable harm to the company, including lost projects and disrupted supplier relationships, which could not be compensated by monetary damages alone.

Wuxi Apptec announced the ruling on August 9, noting that it had filed a lawsuit challenging the 1260H designation in June 2026. The company had sought the injunction to prevent the Defense Department from implementing the designation while the legal challenge proceeds. The court held a hearing on the motion on July 22, 2026, before issuing its decision on August 7. The company welcomed the ruling, which it said would shield it from immediate adverse effects of the designation during the judicial process.

Shares of Wuxi Apptec have rallied more than 50% since June, buoyed by the legal development and a strong financial performance. The company's 2026 interim report showed revenue of 28.897 billion yuan, up 38.93% year-on-year, and net profit attributable to shareholders of 11.08 billion yuan, up 29.43%, marking the first time net profit exceeded 10 billion yuan. Core profit, excluding non-recurring items, surged 89.39% to 10.572 billion yuan.

In addition, Wuxi Apptec raised its full-year 2026 revenue guidance from 51.3 billion to 53 billion yuan to 58.5 billion to 60.5 billion yuan, reflecting an expected year-on-year growth rate of 35% to 39%, up from an earlier forecast of 18% to 22%.