WuXi AppTec Removed From Pentagon's List of Chinese Military Companies
By P.R. Venkat
WuXi AppTec said it has been taken off a Pentagon list of Chinese companies that the U.S. says have ties to the Chinese military.
"This decision relieves the company from further adverse consequences of the 1260H designation," said WuXi AppTec on Tuesday.
The U.S. Department of Defense's 1260H list is published every year and names companies it considers to be affiliated with the Chinese military. Companies on the list are barred from doing business with the U.S. military.
WuXi AppTec, which operates primarily as a contract research, development and manufacturing organization that supports global drugmakers in drug development, said it learned of the Defense Department's decision to remove it from the list on Monday.
In a notice filed Monday with the Federal Register, the U.S. government's official journal, the Pentagon said it removed WuXi AppTec from the list following an Aug. 7 court order. The decision was made "without prejudice to relisting the entity on additional or supplementary grounds," according to the notice.
The Pentagon had added WuXi AppTec to the 1260H list in June. The company sued days later, saying it had been wrongly labeled, and asked a U.S. court to block the move. The court said in a Aug. 7 ruling that the Pentagon's reasons for adding the company to its list didn't match the evidence.
"We think the removal of WuXi AppTec from 1260H list is significantly positive to the stock and also sentiment of the whole Chinese CXO sub-sector," Citi analyst John Yung said in a note.
Yung said the removal also means that WuXi AppTec can, for now, work on U.S. federally funded projects, though these make up only a small part of its revenue.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
November 09, 2026 20:11 ET (01:11 GMT)
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