Goldman Sachs: CDMO company performance reflects the steady maintenance of the sector cycle, optimistic about companies such as WuXi AppTec and Catalent.

Goldman Sachs has released a research report on the mainland pharmaceutical industry, stating that the performance of CDMO enterprises reflects the stability of this sector's cycle, with visibility increasingly depending on exposure to later-stage and commercial projects rather than early-stage financing conditions. The report also mentions that AI has not caused structural damage to order volume, order backlog quality, or pricing. In terms of stocks, the bank has a more positive attitude towards stocks rated "buy," such as WuXi AppTec, BeiGene, CMR Surgical, and Edan Instruments. Furthermore, the bank has upgraded iKang Healthcare to a "buy" rating, reflecting its renewed execution capability, improving profit margins, and clearer mid-term visibility. They have also upgraded Microport Medical to a "neutral" rating as domestic competition has been better than expected, and they are on track to achieve their 2026 targets in an orderly manner.