WuXi AppTec (SHA: 603259, HKG: 2359), a China-based Contract Research, Development, and Manufacturing Organization (CRDMO) , faced allegations this week that could potentially impact its international reputation. According to a Reuters report, US intelligence officials have accused the company of transferring a client’s intellectual property to Beijing without authorization. The claims were allegedly made during a briefing to a group of senators involved in drafting biotech security legislation.
Citing unnamed sources, the report suggests that representatives from the FBI, State Department, and the Office of the Director of National Intelligence presented these accusations in February. Specifics regarding the client or the nature of the information transferred were not revealed. WuXi AppTec has responded to the allegations, stating, “We are not aware of any unauthorized transfers by WuXi AppTec of any US client’s data or intellectual property to China. Safeguarding our customers’ information is of the utmost importance to us, and we store it in keeping with their direction.”
The Chinese embassy in Washington D.C. has also weighed in on the matter, emphasizing the need for “convincing evidence” should there be allegations of intellectual property rights violations by WuXi AppTec or its affiliates.
This incident comes on the heels of robust financial results from WuXi AppTec and its subsidiary WuXi Bio. The company reported annual revenues of RMB 40.34 billion (approximately USD 5.6 billion), marking a 2.5% year-on-year increase, with a 25.6% rise when excluding COVID-19-related projects. WuXi AppTec has forecasted a positive growth outlook for 2024, projecting an increase within the range of 2.7% to 8.6%.- Flcube.com
