CHINA CRO & CDMO 3Q26 Wrap-up: Robust orders reinforce 2027 visibility despite recent market volatility

Bottom line: Strong YTD performance and positioning have raised the bar, with WuXi AppTec becoming a top-10 holding among China onshore mutual funds alongside major technology names as of 3Q, but fundamentals remained on an upward trajectory. Robust 3Q order momentum coupled with accelerated capacity expansion provides higher visibility for the manufacturing business into 2027, while improving biotech funding, M&A/BD activity and emerging AI-based drug discovery activities support an upcycle for wet-lab demand. 3Q26 earnings were broadly solid across China CRO/CDMOs despite continued FX headwinds, while new-order momentum remained strong despite a higher 2H25 comparison base, with WuXi AppTec accelerating to c.60% yoy in 9M26, Pharmaron at c.30%, Tigermed approaching 30% and Asymchem maintaining c.30% growth in 3Q. Guidance updates were largely consistent with expectations following significant upgrades earlier this year, with WuXi AppTec the notable upside revision, raising FY26 conti