LONN/BANB/PPGN: Wuxi Apptec added to precursor to Biosecure list; Positive read-x to Western CDMOs

Research evidence excerpt

LONN/BANB/PPGN: Wuxi Apptec added to precursor to Biosecure list; Positive read-x to Western CDMOs

Equity Research

9 June 2026

LONN/BANB/PPGN

Wuxi Apptec added to precursor to

Biosecure list; Positive read-x to First Look

LONN.S/LONN SW OVERWEIGHTWestern CDMOs

European Pharmaceuticals,

Wuxi Apptec has been added to the US DoD 1260H list, a key BiotechnologySciences & Life NEUTRAL

prescursor to the Biosecure Act, which could limit its ability to Price Target CHF 670.00

Price (08-Jun-26) CHF 489.30

supply US small molecules and peptides post-grandfathering Potential Upside/Downside +36.9%

period (~2032). This is a strong sentiment positive that should Source: Bloomberg, Barclays Research

de-risk investor concerns on long-term demand. PPGN.S/PPGN SE OVERWEIGHT

Biotechnology & Life NEUTRAL

The US Deputy Secretary of Defense has determined that Wuxi Apptec has been designated Sciences

a "Chinese military companies" engaged in providing commercial services, manufacturing, Price Target CHF 33.00

producing, or exporting and are operating directly or indirectly in the United States in Price (08-Jun-26) CHF 36.05

accordance with section 1260H. In its response, Wuxi Apptec said the designation was "clearly a Potential Upside/Downside -8.5%

mistake" and it will "take immediate actions to challenge and correct this erroneous Source: Bloomberg, Barclays Research

designation." Based on our prior Biosecure work, inclusion in the 1260H list is a statutorily

defined criteria to be automatically included in the new Biosecure Act (enacted 18/12/25), which BANB.S/BANB SE EQUAL WEIGHT

seeks to prevent federal agencies or recipients of federal loans/grants from procuring or European Pharmaceuticals, Biotechnology & Life NEUTRAL