Understanding the Market | WuXi AppTec falls more than 4%, leading the decline in CRO concept stocks. Several companies adjust their US business, while domestic innovative drugs are still in an adjustment period

Several CRO concept stocks, including WuXi AppTec, saw their afternoon declines widen, with WuXi AppTec falling by over 4%. Recently, the legislative process of the U.S. "Biosecurity Act" is uncertain, leading Chinese pharmaceutical outsourcing companies to adjust their business in the U.S. Pharmaron sold its U.S. joint venture subsidiary to Johnson & Johnson for approximately USD 102.1 million, WuXi AppTec reduced positions at its U.S. factories, and WuXi Biologics suspended the construction of its U.S. base. The domestic demand for innovative drugs is weak, with poor performance by innovative drug CXOs, and time is needed for demand to recover. Loose liquidity is expected to bring about a revival in investment and financing, with overseas demand improving before domestic demand