Artisan Sustainable Emerging Markets Fund on WuXi Biologics (Cayman) Inc.
Thesis
WuXi Biologics is a Chinese pharmaceutical services company providing research, development and manufacturing capabilities to global biotechnology and pharmaceutical customers. The investment team believes the company's technical capabilities and established customer relationships represent important competitive advantages. Shares appreciated during Q3 2026 as China's biopharmaceutical industry showed signs of recovery and WuXi continued expanding its project backlog. The growing backlog supports the business outlook and reinforces the value of its existing customer relationships. However, the manager remains attentive to geopolitical developments, particularly US-China relations and their potential consequences for the health care industry.
“We believe Wuxi’s technical capabilities and established customer relationships remain important competitive advantages.”
Key risks
- Geopolitical tensions between the United States and China, particularly given the sensitivity of the health care industry
- Broader emerging-market volatility driven by geopolitical uncertainty and changing expectations for US monetary policy
- Political and regulatory instability affecting companies operating in emerging markets