China’s pharmaceutical outsourcing sector has boomed and buckled over the past few years, but signs of a sustained rebound have now emerged.
Industry leaders including WuXi AppTec (603259.SH; 2359.HK) and Asymchem (002821.SZ; 6821.HK) have generally returned to steady revenue growth, although the picture is patchy across other parts of the industry.
Mature businesses such as service providers for small-molecule drugs are still under pressure to cut excess capacity, while the broader market for biocoupled drugs is facing a surge in orders and profits, led by antibody-drug conjugates (ADCs), a class of dual-action therapies designed to target cancer cells.
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