Investors make a beeline for WuXi AppTec shares

Leading contract research outsourcing provider WuXi AppTec saw its A-share price jump by the daily limit of 10 percent again on Friday after 13 consecutive trading days of gains to 107.36 yuan ($16.80).

The market capitalization of the newly listed company totaled 111.9 billion yuan on Friday, ranked fifth by market capitalization among A-share listed pharmaceutical and biotechnology companies.

Jiangsu Hengrui Medicine Co Ltd, Kangmei Pharmaceutical Co Ltd, Yunnan Baiyao Group Co Ltd and Shanghai Fosun Pharmaceutical Group Co Ltd were the other four firms.

WuXi AppTec became the most profitable new share as investors could earn about 86,000 yuan for every 1,000 shares based on Friday's stock performance.

The trading volume of WuXi AppTec totaled 272 million yuan on Friday, compared with 57.6 million yuan on Thursday.

WuXi AppTec released a statement on Friday afternoon to remind investors of paying attention to the company's operating risks after 14 consecutive trading days of gains.

"The nation levied no tariffs on imported anti-cancer drugs, as well as imported potency drugs, which also forced domestic drug manufacturers to upgrade their products, creating great opportunities for contract research organizations, with WuXi AppTec taking a lead.

"Besides, as the market is opening up, there are limited enterprises that are able to offer qualified products, this explains why the company is favored by investors," said Chen Qiaoshan, senior medical analyst at Beijing-based internet consultancy Analysys.

WuXi AppTech, formerly known as WuXi PharmaTech (Cayman) Inc, was listed at the New York Stock Exchange in 2007 and went private in 2015. WuXi PharmaTech (Cayman) Inc was divided into three companies then: Pharmaceutical Co Ltd listed at China's new third board in 2015, Wuxin Biologics went public in Hong Kong in 2017 and WuXi AppTech, which was listed in May.

Zheng Yiran contributed to this story.