WuXi AppTec Steps Up Middle East Push By Offloading Non-Core Chinese Assets
WuXi AppTec Co. (2359.HK; 603259.SH), a leader in pharmaceutical services, is intensifying its focus on global expansion by divesting non-core operations in China. The company’s latest move involves selling two clinical research units to raise capital for its international plans.
Strategic Asset Sales
At the end of last month, WuXi AppTec announced the sale of WuXi Clinical and WuXi MedKey to Hillhouse Investment Management for 2.8 billion yuan (approximately $390 million). This sale follows a series of similar transactions aimed at freeing up resources for global expansion.
“The sale of the two Chinese businesses through the wholly owned subsidiary WuXi AppTec (Shanghai) Co. fits with a strategy of focusing on core strengths in drug discovery, testing and manufacturing,” the company said.
Focus on Global Expansion
Shortly after the sale, WuXi AppTec revealed plans to establish a production facility in Saudi Arabia’s NEOM project, an ambitious initiative seeking to become a futuristic innovation hub in the Middle East. This move underscores the firm’s commitment to strengthening its international presence.
The company already operates a global network across Asia, Europe, and North America, but aims to build a more resilient supply chain capable of adapting to market shifts and mitigating external risks.
Financial Impact
According to company data, the two divested units generated combined unaudited revenue of roughly 1 billion yuan. The capital released from the transaction will be directed toward expanding WuXi AppTec’s global manufacturing and research capabilities.
Author’s summary: WuXi AppTec is boosting its global expansion by selling non-core Chinese assets worth $390 million and planning a new production site in Saudi Arabia’s NEOM innovation hub.