CDMO / Contract Manufacturing

Andelyn Biosciences announced it is now manufacturing FAYUVI, Ultragenyx Pharmaceutical Inc.'s FDA-approved gene therapy for Sanfilippo syndrome type A, also known as mucopolysaccharidosis type IIIA, for commercial supply at its Columbus, Ohio facility. The move follows the U.S. Food and Drug Administration's approval of FAYUVI, making it the first FDA-approved gene therapy manufactured using the Andelyn AAV Curator Platform process. Sanfilippo syndrome type A is a rare, fatal lysosomal storage disease that primarily affects the central nervous system and is marked by rapid neurodegeneration beginning in early childhood; it is estimated to affect 3,000 to 5,000 patients worldwide, with a median life expectancy of 15 years. Andelyn Chief Executive Officer Wade Macedone said the company is proud to manufacture an FDA-approved gene therapy for commercial use using an AAV Curator Platform process, calling the milestone a reflection of the purpose behind Andelyn's founding. Andelyn, a full-service FDA-inspected cell and gene therapy commercial CDMO with more than 20 years of experience, has produced clinical and commercial material for more than 500 cGMP batches and 85 global clinical trials.

Charles River Laboratories International unveiled new rapid cell banking and release programs that use advanced sequencing and in vitro tools to shorten biologics and advanced therapy cell bank lead times for biopharma clients. The platform cuts cell bank production time by 40% and combines rapid microbiological methods with NGS characterization, including the iDTECT NGS platform, to support regulatory readiness. Charles River says the approach reduces reliance on animal testing by incorporating alternative in vitro methods aligned with the 3Rs framework. The company, a US life sciences group with a market cap of about $13.1b, positions the offering for time-sensitive programs where delays are costly. Investors will watch for booked projects using the iDTECT NGS platform, client mix in advanced therapies, and whether the services appear in updated segment revenue breakdowns.

Ultragenyx Pharmaceutical Inc. announced that the U.S. Food and Drug Administration granted standard full approval of FAYUVI, also known as UX111, for pediatric patients with mucopolysaccharidosis type IIIA, or Sanfilippo syndrome Type A, making it the first-ever FDA-approved treatment for the progressive and fatal neurodegenerative disease. FAYUVI is a single-dose intravenous AAV9 gene therapy and marks the second gene therapy approval and sixth FDA approval overall for Ultragenyx, which also received a Priority Review Voucher upon the approval. The approval is supported by data from the pivotal Transpher A trial and long-term follow-up extending to nearly 8 years, in which FAYUVI-treated patients in the modified intention-to-treat population of 17 demonstrated a 23.5 point higher cognitive score over an external natural history cohort of 27 untreated patients, with a p-value of less than 0.0001. Ultragenyx expects commercial product to be available for shipment to Qualified Treatment Centers within 30-60 days, supported by its UltraCare program, and the therapy is manufactured entirely in the U.S. at the company's Gene Therapy Manufacturing Facility in Bedford, Massachusetts, and Andelyn Biosciences in Columbus, Ohio. Sanfilippo syndrome Type A is estimated to affect approximately 3,000 to 5,000 patients in commercially accessible geographies, with a median life expectancy of 15 years.

AstraZeneca has pledged to invest $15bn in China, deepening Western pharmaceutical ties with a country that has become a bona fide drug superpower even as Washington moves to sever them. The company's chief executive, Sir Pascal Soriot, announced the investment during Sir Keir Starmer's Beijing visit, building on existing manufacturing and research sites in Beijing, Shanghai, Wuxi, Taizhou and Qingdao; China is now AstraZeneca's second-largest market, accounting for roughly 12pc of global turnover, with around 17,000 employees and four advanced manufacturing sites. GSK has struck a series of partnerships with Chinese labs, including a $1.3bn pact with Hutchmed for the bulk of licensing rights to what it called first-in-class cancer treatments, and an alliance with Hengrui Pharma worth up to $12bn. Industry-wide licensing deals totalled $138bn last year, a nearly tenfold jump since 2021, according to PharmCube. The US Biosecure Act, signed into law in December, bars companies reliant on federal contracts from working with Chinese biotech firms tied to the military, and the proposed Biotech Investment National Security Act would subject licensing deals involving Chinese companies to national security reviews. China had 1,255 drugs at the research stage by 2024, a nearly eight-fold jump in less than a decade, against 1,441 in America and 400 in Europe.

This year, the pace of Chinese innovative drugs going global has accelerated further, with total out-licensing deal value surpassing $120 billion, up 36% year-on-year. Upfront payments exceeded $10 billion. The market is also showing steady growth in average deal size, rising upfront payment amounts and their share of total deal value, and frequent large transactions. Guosen Securities noted that in the first half of 2026, the pharmaceutical industry's fundamentals continued to improve, with innovative drugs and CXO sectors performing particularly well. Revenue in the innovative drug sector grew 44.1% year-on-year, while CXO sector revenue and net profit rose 23.3% and 15.7% respectively. Growth accelerated further in the second quarter, with innovative drug revenue up 51.3% year-on-year. Domestic innovative drugs are entering a phase of volume expansion under medical insurance, while the second wave of innovative drug globalization is reaching a harvest period. Multiple products have met primary endpoints in global Phase III clinical trials and are about to enter global commercialization. As of 09:59 on September 17, 2026, the STAR Market Pharmaceutical ETF Penghua, tracking the SSE STAR Market Biomedical Index, rose 1.12%. Among constituents, Vazyme rose 5.60%, CanSino Biologics rose 4.38%, and HOB Biotech rose 3.61%, with Dizal Pharmaceutical and Hotgen Biotech also advancing.

Evotec SE announced the initiation of a Phase 1 clinical trial for JST-018, a cocktail of investigational monoclonal antibodies targeting orthopoxviruses, developed by its biologics CDMO subsidiary Just – Evotec Biologics under the U.S. Department of War's Accelerated Antibodies Program. The program advanced from antibody sequence selection through preclinical development, process development, regulatory submission, and cGMP manufacture, with manufacturing completed at the J.POD® facility in Redmond, Washington. This milestone fulfills the scope of a 2023 contract with the U.S. Department of War, which is the second such award under the Accelerated Antibodies Program, following an initial 2022 award for plague antibodies; together, the two contracts have a combined potential value of up to $123.9 million. JST-018 is being developed as a prophylactic therapy to protect warfighters from orthopoxvirus threats, which include smallpox and mpox viruses.

Samsung Biologics, through its Swiss subsidiary Samsung Peptide AG, has published the tender offer prospectus for all publicly held shares of PolyPeptide Group AG, offering CHF 44.31 net in cash per share, implying an aggregate equity value of approximately CHF 1.46 billion. The offer price represents a 40% premium over the unaffected share price on the SIX Swiss Exchange as of April 10, 2026, and an 11.6% premium over the volume-weighted average price of the last 60 trading days before the pre-announcement on July 20, 2026. PolyPeptide's board unanimously recommends acceptance, supported by a fairness opinion from IFBC AG, and Draupnir Holding B.V., holding about 55.65% of shares, has committed to tender all its shares. The main offer period runs from September 15 to October 12, 2026, subject to a minimum acceptance threshold of 66⅔% on a fully diluted basis and regulatory approvals. Following settlement, Samsung Peptide intends to pursue a squeeze-out of remaining minority shareholders and delist PolyPeptide from the SIX.

OPM Biosciences released its half-year report, with both revenue and net profit rising sharply in the first half. Operating revenue reached 454 million yuan, up 155.24 percent year on year, while net profit attributable to the parent company was 124 million yuan, up 230.34 percent. The improvement was mainly driven by growth in the cell culture products business, whose revenue rose 34 percent year on year, while Pengli Biotech has been included in the consolidated statements since January this year, contributing 222 million yuan in revenue. OPM Biosciences also added a preclinical research CRO business this year, mainly because the company completed the acquisition and consolidation of Pengli Biotech in January. The preclinical drug CRO business achieved revenue of 182 million yuan, accounting for 40.11 percent of total revenue and becoming another major revenue pillar for the company. The company cautioned that price fluctuations in raw materials such as laboratory monkeys could have an adverse impact on operations.

Frontier Biotech released its 2026 semi-annual report, achieving total operating revenue of 313 million yuan in the reporting period, a year-on-year surge of 434.27%, with net profit attributable to the parent company of 149 million yuan. Revenue mainly came from small nucleic acid technology licensing cooperation and sales of the core product Aikening. The company's small nucleic acid pipeline made key progress, with three dual-target candidate drugs FB7011, FB7023, and FB7033 advancing IND-enabling studies, while the single-target product FB7013 has received clinical trial approval and begun Phase I subject enrollment. The company reached a global licensing agreement with multinational pharmaceutical company GSK with a total deal value exceeding 1 billion US dollars, and the upfront payment and some milestone payments have been received. In addition, Vaconvir completed online sales coverage in 31 provincial-level administrative regions nationwide, the CDMO business signed orders for three new projects, and the loxoprofen sodium hot-melt adhesive patch FB3002 obtained a drug registration certificate in August 2026.

Joinn Laboratories released its 2026 semi-annual report, achieving operating revenue of 704 million yuan, up 5.27% year on year. Net profit attributable to shareholders of the listed company was 748 million yuan, up 1126.8% year on year. During the reporting period, fair value changes in biological assets brought a net gain of 735 million yuan. In the reporting period, the company's overall order backlog was approximately 3.7 billion yuan, up 60.9% year on year. Newly signed orders were approximately 2.02 billion yuan, up 98.0% year on year. The company's second-quarter net profit was 509 million yuan, up 113% quarter on quarter.

Joinn Laboratories released its 2026 interim report, showing first-half net profit attributable to the parent surged 1126.8% year on year to 748 million yuan, while operating revenue rose 5.3% to 704 million yuan. Second-quarter net profit attributable to the parent came in at 509 million yuan, up 2469.8% year on year, and non-GAAP net profit attributable to the parent swung from a loss of 2.61 million yuan a year earlier to a profit of 481 million yuan. As of the end of the second quarter, total assets stood at 10.826 billion yuan, up 11.8% from the end of the previous year, and net assets attributable to the parent reached 8.975 billion yuan, an increase of 7.8%. The company's order backlog was approximately 3.7 billion yuan, up 60.9% year on year, while newly signed orders totaled about 2.02 billion yuan, up 98.0%, with contracted volumes for antibody, small nucleic acid, peptide, and nucleic acid drug projects rising sharply year on year. The company has built a team of more than 2,500 people and added over 100 core technical staff to support continued business development.

WuXi XDC Cayman Inc reported a 37% revenue increase to RMB3.7 billion for the first half of 2026, with adjusted net profit exceeding RMB1 billion for the first time. The company's service backlog grew over 50% to nearly $2 billion, and total backlog including milestones reached approximately $2.2 billion, including $150 million in royalty and milestone income and $120 million in commercial backlog. CEO Li Jincai noted that the company signed a record 51 ICMCs in the first half, with about 75% from novel modalities, and maintained full-year guidance of at least 35% standalone growth. The Singapore site transitioned to operation, and the BioDlink acquisition integration progressed, though it is currently loss-making. Management declined to raise guidance despite strong performance, citing high capacity utilization and potential margin pressure.

Merck and Moderna announced positive topline Phase 3 results for their individualized cancer vaccine intismeran autogene in resected melanoma, beating Keytruda alone on recurrence-free survival, though no specific efficacy numbers have been released yet. The news lifted several biotech names, with BioNTech surging 21.6% on read-across excitement and Illumina rising 15.6% to $223.22 because its NovaSeq X sequencers are required for every individualized neoantigen dose manufactured. Pacific Biosciences gained 5.8% to $1.28, Repligen traded at $181.62 after reporting second-quarter revenue of $204 million with 13% organic growth, and Danaher saw mid-teens bioprocessing order growth in the second quarter. Leerink Partners analyst Daina Graybosch called the market reaction overly optimistic but still raised her 2032 intismeran forecast to $1.4 billion, while Morningstar projects $16.8 billion by 2035.

Medicilon released its 2026 semi-annual report, achieving an attributable net profit of about 51.6 million yuan in the first half, compared with a loss of 12.9 million yuan in the same period last year, turning around from a year earlier. The company achieved operating revenue of about 761 million yuan in the first half, up 40.91 percent year on year. Medicilon said the performance growth mainly benefited from a continued recovery in global demand for innovative drug research and development. Relying on its integrated preclinical research and development platform, the company has sufficient order reserves, and all business segments achieved significant growth.

Innostar disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 465 million yuan, up 23.92% year on year. Net profit attributable to the parent company was 39.17 million yuan, and net profit after deducting non-recurring items was 32.90 million yuan, turning from loss to profit compared with the same period last year. The company's new orders reached 1.466 billion yuan, up 175.56% year on year. As of the end of the first half, orders in hand stood at 2.247 billion yuan, an increase of 80.09% from the end of 2025. The number of newly signed core business IND and NDA projects rose 33.03% year on year in total, and the value of newly signed overseas contracts increased 38.08% year on year. The company said the improvement in performance was mainly due to a recovery in industry demand, which drove both order volume and prices higher.

Medicilon released its 2026 half-year report, with first-half net profit attributable to the parent of 51.6 million yuan, turning from a loss to a profit year-on-year. The company's operating revenue was 761 million yuan, up 40.9 percent year-on-year; net profit attributable to the parent after deducting non-recurring items was 43.03 million yuan, compared with a loss of 26.73 million yuan in the same period last year; net operating cash flow was 135 million yuan, up 80.5 percent year-on-year. Second-quarter operating revenue was 397 million yuan, up 45.2 percent year-on-year, and net profit attributable to the parent was 35.99 million yuan, up 2,083.1 percent year-on-year. The company said the performance growth was mainly due to a recovery in global demand for innovative drug research and development, with all business segments achieving significant growth.

Asymchem released its 2025 first-half results. Affected by exchange-rate fluctuations, revenue rose while profit fell, but total backlog grew 53.77% year on year. In the first half, the company achieved operating revenue of 3.607 billion yuan, up 13.13% year on year; net profit attributable to the parent was 520 million yuan, down 15.71%; and non-GAAP net profit was 525 million yuan, down 7.30%. Excluding currency effects, operating revenue under constant exchange rates rose 16.20% year on year, and adjusted net profit was 753 million yuan, up 12.90%. Revenue from emerging businesses was 1.304 billion yuan, up 72.49% year on year, with its share of operating revenue rising to 36.16%. Within that, chemical macromolecule CDMO revenue was 736 million yuan, up 94.14% year on year, and biological macromolecule CDMO revenue was 200 million yuan, up 122.82%. The company expects full-year 2026 operating revenue to grow by 19% to 22%.

Flexsteel Industries reported fourth quarter 2026 results with revenue growth of 27.3%, driven by a structural shift in customer demand toward AI-driven drug discovery and high-throughput protein expression. Management attributed record adjusted net profit growth of over 200% to improved business quality and operating leverage from long-term investments in automation and digital capacity. The Life Science Group achieved a 29.5% adjusted operating margin, marking a transition from an investment phase to a scale-and-profitability phase. Full-year revenue growth guidance for the Life Science segment was raised to 25%-30%, reflecting strong visibility into AIDD-related order momentum. AIDD orders are projected to double in the second half of 2026, with management expecting this hyper-growth trajectory to compound over the next several years. The company expects to achieve positive EBITDA for the ProBio CDMO segment by 2027, supported by a 54% year-over-year increase in new orders. CapEx for 2026 is projected at approximately USD 130 million, focused on doubling throughput capacity every quarter to meet surging AI-driven validation demand. Management assumes that the premium margins for AIDD services, roughly 20 points higher than traditional protein orders, will remain sustainable due to the high value of model-ready data. Prior period figures were adjusted to exclude the financial impact of the Renova license transaction to provide a more objective view of underlying performance. Management identified the primary industry bottleneck as the validation of AI-generated designs, which traditional experimental workflows are not equipped to handle at scale. The company maintains a robust cash position of approximately USD 830 million, stating there is no immediate need for incremental financing despite aggressive capacity expansion. Tariff refunds in the U.S. impacted gross margins, with adjusted figures provided to show the underlying operational improvement excluding these one-time effects. In the Q&A session, management noted that AIDD programs require exponentially higher throughput and continuous engagement compared to traditional discovery, and current guidance is described as prudent with potential for further upside if the trend of complex, recurring AIDD projects continues to accelerate. Management claims a clear advantage in speed and data quality, delivering binding data in 4 to 7 days compared to an industry average of over 2 weeks, and GenScript captures more than twice the revenue per delivered item versus its primary competitor by focusing on end-to-end validation rather than just DNA fragments. The company's modular workstation infrastructure allows for faster capacity expansion with lower capital intensity than large-format systems. New AI-native and tech-sector customers require validation for thousands of candidate sequences in a single iteration, necessitating a shift from months to days in feedback loops, and the deliverable for these clients is not just a biological construct but high-quality experimental data used to retrain and improve AI models. This segment is viewed as a structural long-term driver because it embeds GenScript into the customer's core R&D digital infrastructure.

Charles River Laboratories reported second-quarter results that beat analyst estimates and raised its full-year adjusted EPS guidance to $11.30 at the midpoint, a 2.3% increase. Revenue came in at $1.00 billion versus estimates of $979.9 million, a 2.5% beat despite a 2.7% year-on-year decline, while adjusted EPS of $3.02 beat estimates of $2.74 by 10.3%. Management highlighted recovering biopharmaceutical demand, with the Discovery and Safety Assessment segment posting a four-year high net book-to-bill and positive organic revenue growth for the first time since 2023. CEO Birgit Girshick attributed the stabilization to increased proposal activity and improved funding for small and midsize biotech clients, while noting that North American academic and government spending remained subdued. The divestiture of non-core businesses provided an immediate operating margin benefit, lifting operating margin to 11.9% from 9.7% a year earlier.

Charles River Laboratories raised its full-year 2026 guidance after second-quarter results exceeded its prior outlook, driven by improving biopharmaceutical demand and a rebound in its Discovery and Safety Assessment segment. The company reported organic revenue growth of 0.1% for the quarter, the first organic increase since the third quarter of 2023, and non-GAAP earnings per share of $3.02, up 47% sequentially. DSA net bookings rose 12.6% sequentially to $701 million, pushing the net book-to-bill to 1.19x, the highest in nearly four years. Charles River now expects full-year organic revenue growth of flat to 1%, up from a prior forecast of a low single-digit decline, and raised its non-GAAP EPS guidance to a range of $11.15 to $11.45. The company also cited a collaboration with Eli Lilly's TuneLab platform and an expansion of bioanalytical capacity in Scotland as strategic highlights.

WuXi AppTec has successfully obtained a temporary injunction from a US court, suspending the US Department of Defense's restrictions that placed the company on the 1260H list of entities linked to the Chinese military. The ruling shields the company from immediate adverse effects while it challenges the designation through judicial proceedings. Market analysts believe that if the company is subsequently removed from the list, it would support a valuation recovery for WuXi AppTec and the broader CXO sector. The company's previously released half-year report for 2026 showed that revenue from continuing operations rose 48 percent year on year, adjusted non-IFRS net profit surged 83.2 percent, and its order backlog reached 66.43 billion yuan, prompting a significant upward revision of its full-year guidance. Boosted by these developments, as of August 7, the GF Hong Kong Innovative Drug ETF, in which WuXi AppTec has a weighting of over 8 percent, has rebounded 28.27 percent from its year low on June 10, and the GF Innovative Drug ETF gained 7.77 percent over the past week.

The CRO concept surged again in early trading today, with Novoprotein hitting the 20% daily limit up shortly after the open, following a limit-up close in the previous session. Hepalink and Baihua Pharmaceutical also reached their daily limit up, while Medicilon, HitGen, and Sino Biological rose over 7%. In news, CRO leader WuXi AppTec disclosed on Sunday evening that the U.S. District Court for the District of Columbia ruled on its motion for a preliminary injunction, shielding the company from immediate adverse effects of the 1260H designation during the judicial challenge. WuXi AppTec also released its half-year report on August 3, showing attributable net profit of 11.08 billion yuan in the first half of 2026, up 29.43% year-on-year, and raised its full-year 2026 guidance, with continuing operations revenue growth now expected at 35% to 39%, up from the previous 18% to 22%. Meanwhile, the aquaculture sector rebounded sharply, with Yisheng Livestock hitting the daily limit up within eight minutes of trading, Xiaoming Agriculture rising over 6%, and Minhe Animal Husbandry, Shennong Group, and Xiantan rising over 5%. The Dalian Commodity Exchange's live hog main contract LH2611 has rebounded over 4% cumulatively over the past five trading days. A Cinda Futures research note pointed out that the national breeding sow herd stood at 37.8 million head at the end of June 2026, a cumulative reduction of 7.35% from the earlier peak, while sample enterprise piglet births have declined for three consecutive months, strengthening expectations of far-month capacity reduction.

The A-share CRO sector surged on the morning of August 7, with the sector index climbing 7.37% to top all sector gainers. Among the 41 constituent stocks, 15 rose more than 10%, including Bide Pharmaceutical, Yaokang Bio, Baihua Pharmaceutical, Apeloa Pharmaceutical, and Asymchem hitting their daily limit up, while another 17 stocks such as BioMap, Joinn Laboratories, Tigermed, and WuXi AppTec gained over 5%. Earnings were the main driver, after BioMap released a profit forecast the previous evening, projecting attributable net profit of 236 million to 246 million yuan for the first half of 2026, a year-on-year increase of 3.92 to 4.13 times. So far, eight CRO companies have reported half-year results or profit forecasts, with six expecting double-digit or higher growth. Joinn Laboratories and Medicilon had previously forecast first-half profit to double. Sector leader WuXi AppTec reported in its half-year results this week that attributable net profit reached 11.08 billion yuan in the first half, up 29.43% year-on-year, surpassing 10 billion yuan for the first time in a first half. It also raised its full-year 2026 revenue guidance to between 58.5 billion and 60.5 billion yuan, with continuing operations revenue growth raised to 35% to 39%. The turnaround in CRO earnings stems from rising orders, as a sustained recovery in global pharmaceutical investment and financing drives renewed demand for innovative drug R&D. BioMap said its two major business lines achieved dual-engine growth, while WuXi AppTec's continuing operations backlog reached 66.43 billion yuan as of end-June, up 25.2% year-on-year. A research note from China Post Securities argued that overseas R&D outsourcing demand is steadily recovering, and a boost in domestic R&D outsourcing demand is expected to materialize in 2026.

Eli Lilly raised its full-year 2026 revenue guidance to $85.0 billion–$87.0 billion from $82.0 billion–$85.0 billion after reporting second-quarter 2026 sales of about $23.0 billion and net income of roughly $7.10 billion. Management attributed the improved outlook largely to surging demand for its GLP-1 diabetes and weight-loss portfolio. The company also expanded a manufacturing partnership with Resilience to scale U.S. production of injectable devices for those medicines. Despite the strong quarter, growing political and payer pushback on obesity drug pricing could eventually pressure Lilly's economics.

Merck KGaA raised its full-year 2026 guidance after reporting accelerating organic sales and earnings growth in the second quarter, driven by its Life Science and Electronics segments. Group organic sales rose 4.1 percent, while EBITDA pre increased 9.3 percent organically to 1.6 billion euros. The company now expects 2026 organic sales growth of 1 to 3 percent, EBITDA pre of 5.9 to 6.3 billion euros, and EPS pre of 7.90 to 8.60 euros. Life Science organic sales grew 8 percent, led by a 15 percent increase in Process Solutions, and Electronics organic sales jumped 11.7 percent on strong semiconductor demand for AI and data-center applications. Healthcare organic sales declined 3.4 percent due to U.S. competition and the loss of Mavenclad exclusivity, though rare-disease products contributed positively. Merck also confirmed it remains on track to acquire Bio-Techne by the end of 2026 or early 2027, expecting about 140 million euros in annual cost synergies by the third year after closing.

Biologics CDMO AsymBio is set to secure 1.2397 billion yuan, approximately $184 million, from Asymchem Group, Hillhouse Qirui and other investors to support its long-term growth. Asymchem Group will contribute 1.05 billion yuan while Hillhouse Qirui will invest 177 million yuan, with Asymchem Group's shareholding in AsymBio rising to 83.4965 percent after the transaction. The funds will be used for AsymBio's principal business operations and to drive further expansion of its manufacturing capacity, including research and development capabilities, GMP manufacturing lines, and high-containment facilities. AsymBio generated 470 million yuan in revenue during 2025, with revenue for the first quarter of 2026 exceeding 140 million yuan. The company operates as a subsidiary of Asymchem Group and focuses on biopharmaceutical CDMO services from early-stage development to large-scale commercial manufacturing, with experience in ADCs and expansion into NDCs and protein-based therapeutics.

WuXi AppTec has rarely sharply raised its full-year 2026 performance guidance, lifting overall revenue from the previous 51.3 billion to 53 billion yuan to 58.5 billion to 60.5 billion yuan, and raising the continuing operations revenue growth rate from 18 to 22 percent to 35 to 39 percent. Boosted by this, the company's A-shares hit the daily limit up, closing at 141.35 yuan, a new high since November 2021, with total market capitalization returning above 400 billion yuan. In the first half of the year, the company achieved operating revenue of 28.897 billion yuan, up 38.93 percent year-on-year, and net profit attributable to the parent of 11.08 billion yuan, up 29.43 percent year-on-year. The chemical business contributed the core increment, with revenue reaching 24.986 billion yuan, up 53.28 percent year-on-year, and small-molecule CDMO business revenue of 14.99 billion yuan, up 72.7 percent year-on-year. The company simultaneously launched an employee stock ownership plan for no more than 4,000 people, with performance assessment linked to 2026 operating revenue. The 100 percent vesting threshold is 53 billion yuan, below the lower end of the latest guidance. In the second quarter, northbound funds significantly increased their positions, with the Shanghai-Hong Kong Stock Connect adding 87.6823 million shares, and Hong Kong Securities Clearing Company Limited holding 261.6 million shares, firmly ranking as the largest tradable shareholder.

On August 4, major A-share indices opened collectively higher. The innovative drug concept continued to climb, with the CXO segment leading the gains. WuXi AppTec surged in a straight line to hit its daily limit-up, and Asymchem, Luoxin Pharmaceuticals, Jimin Health, and Harbin Medisan also hit limit-up. In terms of news, WuXi AppTec released its 2026 half-year report, with first-half revenue of 28.9 billion yuan, up 38.9 percent year-on-year, and attributable net profit exceeding 10 billion yuan for the first time in a first half, reaching 11.08 billion yuan, up 29.43 percent year-on-year. The company raised its full-year 2026 performance guidance across the board, lifting expected total revenue from a range of 51.3 billion to 53 billion yuan to a range of 58.5 billion to 60.5 billion yuan. The computing power leasing concept was repeatedly active, with QingCloud Technologies hitting the 20 percent limit-up and Meili Cloud achieving a three-day winning streak. Data from the China Academy of Information and Communications Technology showed that domestic AI computing power demand surged 417 percent year-on-year in the first quarter of 2026, while effective supply grew only 128 percent, widening the supply-demand gap. The nuclear power sector also strengthened, with LBT hitting a two-day winning streak. In terms of news, the National Development and Reform Commission and the National Energy Administration issued the 15th Five-Year Plan for New Power System Construction, proposing to promote large-scale nuclear power construction, with installed nuclear power capacity reaching approximately 110 million kilowatts by 2030.

On August 4, the healthcare services sector was active, with WuXi AppTec, Berry Genomics, Baihua Pharmaceutical, Asymchem, and Chuangxin Medical hitting their daily limit up, while Porton Pharma Solutions, Pharmaron, and others also rose. On the news front, WuXi AppTec released its 2026 semi-annual report on the evening of August 3. First-half revenue reached 28.897 billion yuan, up 38.93 percent year on year, and net profit attributable to shareholders of the listed company was 11.08 billion yuan, up 29.43 percent. Second-quarter revenue hit a record high of 16.462 billion yuan. The company also disclosed an interim dividend plan, proposing a cash dividend of 5.1 yuan per 10 shares, totaling 1.506 billion yuan. WuXi AppTec raised its full-year 2026 guidance across the board, lifting its expected total revenue from a range of 51.3 billion to 53 billion yuan to a range of 58.5 billion to 60.5 billion yuan, and raising its continuing operations revenue growth forecast from 18 to 22 percent to 35 to 39 percent. Fu Yifu, a special researcher at Suning Bank, said WuXi AppTec's better-than-expected semi-annual report injected a shot of confidence into the healthcare services sector and revived valuation sentiment. Jiang Han, a senior researcher at Pangu Think Tank, noted that the company's unique CRDMO business model continues to gain momentum, with more late-stage clinical and commercial projects, and warming investment and financing in innovative drugs driving a synchronized uptick in CXO demand. As of the midday close, WuXi AppTec shares were at 141.35 yuan, giving it an A-share market capitalization of 421.8 billion yuan.

Porton Pharma Solutions announced that its second-tier holding subsidiary, Suzhou Porton Biopharma, has recently obtained a Drug Manufacturing License issued by the Jiangsu Medical Products Administration, valid until July 26, 2031. This license signifies that Suzhou Porton now possesses the compliant qualifications to undertake commercial contract manufacturing of cell and gene therapy products, which will help advance the company's cell and gene therapy CDMO business. The acquisition of this Drug Manufacturing License is not expected to have a significant impact on the company's 2026 financial performance.

Bachem Holding AG refined its full-year 2026 sales growth guidance to 35-40% in local currencies, down from a prior range of 35-45%, citing improved visibility into its detailed production schedule. The company reported 4% sales growth in the first half of 2026, or 7.3% in local currencies, with no contribution yet from its new Building K facility, which produced its first commercial GMP material during the period and is expected to drive significant second-half growth. Bachem also signed a strategic agreement with a partner for large-volume peptide supply at its Sislerfeld site, committing to an investment of more than 500 million Swiss francs and securing a major anchor customer. The EBITDA margin diluted by 370 basis points to 25.4% in the first half, mainly due to higher costs in COGS from hiring, maintenance, and capacity optimization, while the company maintained a strong financial position with a 62% equity ratio, a leverage ratio of 0.8 times, and customer prepayments of 455 million Swiss francs. CapEx guidance for 2026 was reduced to 350-400 million Swiss francs due to a delay in the Sislerfeld project, and the company expects to be free cash flow positive in 2029.

Eli Lilly and contract manufacturer Resilience will jointly invest $750 million to boost production of Lilly's KwikPen injectable devices, which are used for its popular GLP-1 medicines Zepbound and Mounjaro. The additional investment will add 400 jobs to the Cincinnati area and expand the footprint of the existing facility, with the new addition set to open in early 2027. The KwikPen, which allows multiple doses from a single device, is also used with some of Lilly's insulin drugs such as Humalog.

Several biotech stocks posted sharp gains on Wednesday, led by SciSparc after its subsidiary completed internal validation of a quantum sampling platform for clinical trial data. SciSparc closed at $9.09, up 70.54%, following the announcement that NeuroThera Labs successfully validated the platform being advanced by CliniQuantum, in which NeuroThera holds a 54.01% ownership interest. Avantor rose 15.78% to $14.38 after reporting second-quarter net sales of $1.69 billion and raising its full-year adjusted EPS guidance to $0.80 to $0.83 from $0.77 to $0.83. NeoGenomics gained 13.96% to $15.27 after second-quarter consolidated revenue increased 11% to $202 million and the company lifted its full-year revenue outlook to $802 million to $806 million from $797 million to $803 million. Alvotech climbed 13.87% to $3.53 after the FDA classified the inspection of its Reykjavik manufacturing facility as Voluntary Action Indicated, a step forward for its biosimilar applications. Sanara MedTech surged 13.55% to $30.25 after agreeing to be acquired by MiMedx Group in a cash-and-stock deal valued at $35 per share, or about $350 million in total enterprise value. LB Pharmaceuticals advanced 11.62% to $39.00 after securing a $150 million private placement and accelerating the timeline for topline results from its Phase 3 schizophrenia trial to the first half of 2027.