WuXi AppTec Q3 profit jumps, to sell two research arms to Hillhouse for 2.8 billion yuan

WuXi AppTec (2359) posted an over 50 percent jump in third-quarter net profit and announced a 2.8 billion yuan (HK$3.05 billion) disposal plan of its two clinical research arms to Hillhouse Investment Management. 

The Chinese pharmaceutical firm’s net income soared by 53.3 percent to 3.5 billion yuan in the quarter, and revenue also grew by 15.3 percent to 12 billion yuan. 

It also agreed to sell WuXi Clinical Development Services and WuXi MedKey Med-Tech Development to private asset manager Hillhouse

The company believes the transaction reflects its long-term strategy to continuously focus on its core contract research development and manufacturing organization business model, emphasizing drug discovery, laboratory testing, process development and manufacturing services.