WuXi AppTec (SHA: 603259, HKG: 2359), a leading Contract Research, Development, and Manufacturing Organization (CRDMO) based in China, has found itself at the center of a controversy following allegations by US intelligence officials. According to a Reuters report, these officials claimed that WuXi AppTec had transferred a client’s intellectual property to Beijing without authorization. This accusation was reportedly made during a briefing to a group of senators working on a biotech security bill in February.
The officials, said to be from the FBI, the State Department, and the Office of the Director of National Intelligence, did not disclose details about the specific client or the information allegedly transferred. WuXi AppTec has vehemently denied these claims, 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.”
No comment was received from the relevant US authorities regarding the report. The Chinese embassy in Washington D.C. responded by saying, “If anyone believes that WuXi AppTec or its related companies have violated laws regarding intellectual property rights, they should provide convincing evidence to support their claims.”
This public relations challenge comes on the heels of strong financial results from WuXi AppTec and its subsidiary WuXi Bio. The company reported annual revenues of RMB 40.34 billion (USD 5.6 billion), marking a 2.5% year-on-year increase, with a significant 25.6% rise when excluding COVID-19-related projects. WuXi AppTec has forecasted a positive growth for 2024, projecting an increase within the range of 2.7% to 8.6%.- Flcube.com
