JP Morgan released a research report stating that it continues to list WuXi AppTec (02359) as its top pick in China's CXO industry. The firm noted that the company is China's largest contract research, development and manufacturing organization by revenue and expressed optimism about its business fundamentals. JP Morgan believes competition in the small molecule CRDMO sector remains relatively moderate, while WuXi AppTec's TIDES business continues to demonstrate strong growth momentum. The firm maintains its "Overweight" rating with a target price of HK$138.

JP Morgan recently participated in WuXi AppTec's 2025 Investor Day, which coincided with President Trump's announcement of plans to impose 100% tariffs on imported branded and patent drugs starting October 1st, unless the relevant pharmaceutical companies have begun construction of production facilities in the United States.

JP Morgan anticipates that this drug tariff policy will not have a direct impact on Chinese CDMO companies such as WuXi AppTec, as customers typically bear the responsibility for tariff payments. Additionally, WuXi AppTec is expanding its U.S. production capacity to meet client demand for localized manufacturing.