(Yicai) March 19 -- WuXi AppTec’s stock price slid further after the Chinese biotech company forecast similar revenue for this year as it had last year against the backdrop of proposed US legislation that jeopardizes its substantial sales in that country.

WuXi AppTec [SHA: 603259] closed down 4.9 percent at CNY50.81 (USD7.06) a share in Shanghai today, extending the year-to-date loss to 30 percent. The firm’s Hong Kong-listed stock [HKG: 2359] tumbled 7.5 percent to HKD39.90 (USD5.10), meaning its value has halved since the end of December.

Revenue is expected at between CNY38.3 billion and CNY40.5 billion (USD5.3 billion and USD5.6 billion) this year, excluding Covid-19 commercial projects, compared with CNY40.3 billion in 2023, according to the firm’s guidance. It also expects a similar net profit margin as last year, considering new capacity ramp-up and the foreign exchange impact.

Sixty-five percent of the firm’s sales last year were in the US, where the proposed Biosecure Act, which cleared the Senate’s homeland security panel on March 6, puts WuXi AppTec on a list of “biotechnology companies of concern.”

In an earnings commentary, WuXi AppTec Chairman and Chief Executive Li Ge reiterated that the Shanghai-based company does not pose a national security risk to any country.

The bill “would preemptively and unfairly designate our company without due process,” Li said. “As the proposed legislation remains subject to further review and changes, we continue to engage with relevant stakeholders to explore possible solutions and appeal for due process through a transparent consideration of the facts.”

Following reports about the bill on Jan. 26, WuXi AppTec's shares slumped 16.4 percent, while WuXi Biologics [HKG: 2269], which was spun off from Wuxi AppTec several years ago, dived 18.2 percent. WuXi Biologics tumbled 5 percent to HKD14.02 today.

Editors: Dou Shicong, Martin Kadiev