After $10B in market value lost, China's WuXi Biologics removed from US unverified list
WuXi Biologics has cause to celebrate as it finds itself removed from the US Department of Commerce’s unverified list.
The China-based contract research and manufacturing giant was initially placed on the list in February of this year after delays in verifications for certain products that were being exported to the US. At the time, the company had been importing items that were subject to US export control, but with the commerce department’s verification process not being able to take place due to Covid-19, it was enough for the company to find its way onto the unverified list. However, WuXi Biologics stressed that it was not blacklisted.
Still, the move managed to knock the company’s market value down almost $10 billion, and drive its stock price down 26%. On the news of the removal, the price did see a slight increase before evening out. The price is still down 58% since last year.
WuXi Biologics was on the correct path to getting off the list this summer as a US export control officer was able to inspect facilities in the city of Wuxi. According to the company, this onsite inspection was in coordination with China’s Ministry of Commerce. The company is also working to ensure that its other facilities and subsidiaries are up to standard as well.
“The company is also working closely with relevant government authorities to schedule the on-site end-use check of its other subsidiary, WuXi Biologics (Shanghai) Co., Ltd., and will commence the UVL delisting process for the such entity as soon as the check is completed,” said a statement from WuXi Biologics.
This comes as the company has been investing heavily in infrastructure expansion. In June, the company announced it would spend over $1.4 billion over 10 years expanding its facility in Singapore. The expansion will add around 120,000L of biomanufacturing capacity to its global network by 2026 and is expected to employ around 1,500 staff.