WuXi AppTec Co Ltd (603259)

What is WuXi AppTec Co Ltd (603259)?

WuXi AppTec Co., Ltd. is headquartered in China, provides research, development and manufacturing services to discover, develop and manufacture small molecule drugs and cell and gene therapies. The Company mainly conducts its businesses through four segments, including China-based Laboratory Services segment, Contract Manufacturing organization/contract development and manufacturing organization services (CMO/CDMO services) segment, US-based Laboratory Services segment and Clinical Research segment. WuXi AppTec Co., Ltd. was founded in 2000.

603259 is it a good pick?

The global scientific research and development services market is expected to grow from $725.56 billion in 2021 to $822.49 billion in 2022 at a compound annual growth rate (CAGR) of 13.4%. The growth is primarily due to companies reorganizing their operations and recovering from the impact of COVID-19, which had previously led to restrictive containment measures involving social distancing, remote working, and the closure of business activities that resulted in operational challenges. The market is expected to reach $1292.01 billion in 2026 at a CAGR of 12.0%. WuXi AppTec Co., Ltd. On October 29th published revenue was $5.98B, the amount was less than the projection $6.06B. For March 30th, revenues are projected to be $6.06B.

Technical analysis

From Nov 19th to Dec 1st the share price went up 14.94% to a price of $148.66. From Dec 1st to Jan 21st the share price dropped -28.14% to a price of $106.5. The MACD shows that the lines are crossing and the RSI is in the sell area, therefore the stock price could be down around -5.52% to a price of $101.05 and then the share price could rise 12.36% to a price of $113.85.