[ET Net News Agency, 6 November 2019] S&P Global Ratings assigned its "BBB-" long-term
issuer credit rating to WuXi AppTec Co. Ltd. (02359).
The stable outlook reflects the credit rating agency's expectation that WuXi AppTec will
continue to increase revenue at 25%-30% annually and that the EBITDA margin will moderate
over the next 24 months.
WuXi AppTec is the leading contract research organization (CRO) in China and among the
world's top-10 CROs for pharma firms. The company benefits from cost advantages and should
enjoy a high growth rate over the next several years while maintaining modest leverage.
The company's smaller scale and less extensive offering in clinical CRO partly temper
these advantages. (KL)