WuXi AppTec shares fell more than 10%, is CXO still a hot track?

As of the close of trading on the 15th, the A-share and H-share shares of CXO company WuXi AppTec (603259.SH,02359.HK) fell by 10% and 19.06% respectively.

WuXi AppTec fell to a halt with the entire CXO sector. Among them, Haoyuan Pharmaceutical fell by more than 9%, Tigermed fell by more than 8%, Jiuzhou Pharmaceutical, Kanglong Huacheng (300759. SZ) fell more than 7%, ZhaoYan New Drug and Medici fell more than 6%.

Many industry insiders believe that the stock price of CXO companies has fallen sharply, which is also related to a report in foreign media today. The article mentions that the Commerce Department is expected to add more than two dozen Chinese companies to the entity list on Thursday, including companies involving biotechnology.

In response to the decline in stock prices, the relevant person in charge of WuXi AppTec told the first financial reporter that the company's operating conditions are normal. In the face of the change in the stock price of the CXO sector, the Securities Department of Jiuzhou Pharmaceutical also said that the company is currently operating normally and has not received relevant news.

In recent years, the state has issued a number of policies to encourage the development of the biomedical industry. CXO companies, which enjoy the dividends of innovative drug development, began to expand their business continuously. For example, some CRO companies have gradually formed CRO suppliers with a multi-service full-process layout of "generic drug CRO + innovative drug CRO + independent products".

"The CXO industry will continue to develop towards specialization and large-scale, and the advantages of head enterprises will become more and more obvious. In the process of cooperation with Tigermed, WuXi Biologics and other enterprises, it was found that CRO and CDMO have greatly contributed to the research and development of innovative pharmaceutical companies. The head of an innovative pharmaceutical company said.

It is worth noting that while developing and growing, the mobility of personnel in CXO companies has begun to increase. According to informed sources, the current mobility of CRO personnel is 20%-30%, and in the Internet industry with large personnel mobility, this proportion will generally be controlled within 15%.