--- title: "BofAS: China's CXO Sector Benefiting From Strong Biotech Financing, Raises TPs for WUXI APPTEC and Others" type: "News" locale: "en" url: "https://longbridge.com/en/news/295608582.md" description: "BofAS raised target prices for Wuxi AppTec, Pharmaron, and Wuxi Bio, citing strong biotech financing in China and global markets. Primary healthcare financing in China's H1 2026 surged 41.7% YoY to RMB72.6 billion, while innovative drug out-licensing deals reached USD105.1 billion, up 73% YoY. The broker increased the sector's terminal growth rate assumption from 1% to 3%, reflecting accelerated R&D activities benefiting Chinese CXO companies." datetime: "2026-08-12T03:36:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295608582.md) - [en](https://longbridge.com/en/news/295608582.md) - [zh-HK](https://longbridge.com/zh-HK/news/295608582.md) generator: "portal-rs" --- # BofAS: China's CXO Sector Benefiting From Strong Biotech Financing, Raises TPs for WUXI APPTEC and Others BofAS published a report saying that supported by strong global and Chinese primary market biotech financing performance in 1H26, together with continued active out-licensing deals for innovative drugs, R&D activities are expected to accelerate further, benefiting Chinese CRO/CDMO companies. The broker raised its terminal growth rate assumption for the sector from 1% to 3%, and lifted target prices for multiple CXO companies. BofAS noted that according to Pharmcube data, China's primary healthcare financing market recorded 814 deals in 1H26, up 13.8% YoY, with total financing amount reaching RMB72.6 billion, up 41.7% YoY. Among them, innovative drug financing amounted to RMB41.8 billion, up 79.1% YoY. For global innovative drug financing, there were 505 financing events in 1H26, up 6.1% YoY, with total financing amount of USD26.8 billion, up 58.5% YoY. In terms of out-licensing transactions, China recorded 210 related deals, with upfront payments totaling USD5.4 billion and total deal value reaching USD105.1 billion, up 73% YoY. The broker raised the H-share TP for WUXI APPTEC (02359.HK) +0.400 (+0.201%) Short selling $616.31M; Ratio 34.368% from HKD204.3 to HKD242, and the A-share TP for APPTEC (603259.SH) -0.860 (-0.537%) from RMB177.8 to RMB210.5, while maintaining the Buy rating due to clear earnings growth visibility. The broker also raised its 2029-2035 revenue forecasts for WUXI APPTEC by 3% to 7%, while adjusted net profit forecasts were also lifted by 3% to 7%. The H-share TP for PHARMARON (03759.HK) +0.020 (+0.068%) Short selling $28.59M; Ratio 3.988% was raised from HKD27 to HKD32.3, while the A-share TP for PHARMARON (300759.SZ) +0.860 (+1.807%) was raised from RMB23.8 to RMB28.4. The H-share rating was maintained at Buy, while the A-share rating was kept at Underperform due to relatively higher A-share valuation. The TP for WUXI BIO (02269.HK) -0.700 (-1.522%) Short selling $203.66M; Ratio 9.233% was raised from HKD39.5 to HKD47.3, with the Neutral rating maintained, balancing its strong execution capability against relatively less attractive valuation compared with peers. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-11 16:25.) 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