By Clarence Leong


Shares of Wuxi Biologics (Cayman) Inc. gained in early Friday trade in Asia, after a unit of the Chinese biotechnology company was removed from the U.S. Commerce Department's unverified list.

Wuxi Biologics' stock rose 6.7% to 51.90 Hong Kong dollars (US$6.67), paring its year-to-date losses to 44%. It was the top gainer among blue chips, with the city's benchmark Hang Seng Index up 0.9%.

In February, two units of Wuxi Biologics were added to the list, which subjects foreign entities to tighter export controls, causing Wuxi Biologics' stock to plunge. One of the units, WuXi Biologics Co., was removed from the list in October.

On Friday, the Jiangsu-based company said the other unit on the list, WuXi Biologics (Shanghai) Co., has also been removed from the list, following the "successful completion of the on-site end-use check visit by the U.S. Commerce Department, in coordination with China's Ministry of Commerce."

The news removed an overhang on the company's stock much earlier than expected, Nomura analysts Jialin Zhang and John Nie said in a note.

"We view this as a positive signal for easing of geopolitical tensions and a catalyst for the company's stock price," they said.

The Japanese investment bank keeps its buy rating on the stock with a target price of HK$97.78.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

12-15-22 2221ET