Wuxi AppTec, Asia’s leading contract pharmaceutical research provider, confirms its intention to expand into the United States
It is now clear that relations between the United States and China are not the best. Nevertheless, in certain sectors, the interests of China in the USA are still high. For example, the leading Chinese biotech firm Wuxi AppTec says US hurdles, will not stop the acquisition of US firms.
The executives of Wuxi AppTec have confirmed that the most rigorous control by the United States, on the investment of the Chinese company in the US biotechnology companies, will not affect its interest in pursuing investment opportunities in this country.
Yao Chi announced the company’s Hong Kong listing plan
The intentions of the Chinese company are serious and it promises to be able to overcome all US requests. Board secretary of Wuxi AppTec, Yao Chi, said: “It is not a problem, we will just make the necessary filings according to the legal requirements”.
The company’s intentions also reflect China’s intention to overcome Silicon Valley and win the biotech race and gain control of the world’s biological data. The fear of an excessive seizure of power by China has prompted the US Treasury Department to announce radical changes to the rules that give the Committee for Foreign Investment in the United States (CFIUS) the power to force foreign buyers to US assets in high-tech sectors – including life sciences and biotechnology – to make mandatory documents.
Europe-bound investment from China surged to US$2.28 billion in the first half of this year
But for China there is not only North America, but also Europe. In fact, according to Thomas Gilles, chair of international law firm Baker McKenzie’s Europe, Middle East, Africa and China Group, Chinese investment in North America’s health care and biotech sector has fallen this year and growing in Europe.
Following a US$3.3 billion privatisation and delisting from New York three years ago, AppTec raised 2.25 billion yuan (US$324 million) in May this year by floating shares in Shanghai. AppTec aims to sell in Hong Kong 116.47 million new shares at HK$64.1 to HK$71.5 each, a 20.7 to 28.9 per cent discount to its Shanghai-listed shares’ closing price on Friday.
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