Quick Take: Wuxi Apptec removed from the 1260H List

Wuxi AppTec has been removed from the Department of Defense 1260H list, per Endpoint News citing a Federal Register notice published Monday. The BIOSECURE Act, enacted in December 2025, uses the 1260H designation as a route to identifying biotechnology companies of concern (BCC); the list is maintained by the DoD, which publishes Chinese military companies operating in the US annually until December 2031. AppTec was added in June 2026, raising the risk of a BCC designation and federal contract restrictions under BIOSECURE. The reported removal is therefore a sign of relief and should improve sentiment across China healthcare. The DoD decision was made in compliance with an August order from the District Court of Columbia granting a preliminary injunction, and litigation continues with a final verdict potentially a year away; the removal is without prejudice to relisting. We see the overhang now clearly lifted, the sole reason the stock trades at 16x PE versus a peer average of 25-30x d