Zhao Yin International published a report indicating that the military committees of the USA Senate and House of Representatives recently released the text of the 2025 Fiscal Year National Defense Authorization Act (NDAA) after final negotiations between the two chambers. The act will take effect after being signed by the President of the USA. The biotechnology safety bill was not included in the 2025 Fiscal Year NDAA amendments, meaning that the attempt to pass the biotechnology safety bill through the NDAA legislative path has failed.
The report indicates that the biotechnology safety bill can still advance through separate legislation, but considering there are only 2 weeks left in the window, the likelihood of success for separate legislation is deemed extremely low. In the long term, the firm is bullish on wuxi apptec maintaining strong competitive advantages in the global pharmaceutical research and development industry chain, sustaining a stable market share. Furthermore, it is expected that with the recovery of global biomedical financing, the company’s orders will continue to grow rapidly, and the peptide business will grow rapidly, driving performance recovery.
Zhao Yin International maintains a buy rating on wuxi apptec, raising the target price from 72.37 yuan to 78.51 yuan to reflect reduced uncertainty regarding the legislation and performance recovery brought by the growth in orders on hand. The firm expects the company’s revenue to change year-on-year from 2024 to 2026 to be -3.6%/+11.4%/+13.6%, while adjusted non-IFRS net income is expected to change year-on-year to be -3.9%/+11.9%/+15.5%.
