Indian CRDMOs WuXi Apptec’s 1260H inclusion sentimentally positive; watch for actual business migration

Research evidence excerpt

Indian CRDMOs WuXi Apptec’s 1260H inclusion sentimentally positive; watch for actual business migration

J P M O R G A N Asia Pacific Equity Research

09 June 2026

Indian CRDMOs

WuXi Apptec’s 1260H inclusion sentimentally

positive; watch for actual business migration

The U.S. Department of Defense has added WuXi AppTec Co., Ltd. to its Section Pharmaceuticals & Healthcare

1260H list of Chinese Military Companies operating in the United States (List Services

here). We view this as sentimentally positive for Indian CRDMOs, even if the Bansi Desai, CFA AC

immediate business impact may be limited. Our China analyst, Yang Huang, notes (91 22) 6157 3581

that WuXi’s inclusion came as a surprise and is a sentiment hit for WuXi and bansi.desai@jpmorgan.com

Chinese CDMOs, though direct disruption may be modest given the Biosecure J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

Act’s scope and grandfathering provisions. For Indian CRDMOs, the key Registration: INH000001873, (91-22) 6157-3000.

implication is that this could further support customer efforts to diversify beyond

China - this is especially relevant given India's still-small ~3.8% share of the global

CRDMO market, where even modest share gains could be meaningful for leading

domestic players. Key factors to monitor are new RFQs, lateral wins, second-

source qualifications, late-stage project transfers, capacity reservations, and

revenue conversion. We remain positive on capability-led beneficiaries,

particularly Divi’s and Anthem Biosciences.

• Regulatory risk could influence future sourcing decisions: While the

1260H designation does not create an outright commercial prohibition, it

increases the perceived regulatory risk of concentrating work with Chinese