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Three weeks after raising $354 million in an initial public offering on the Shanghai Stock Exchange, WuXi AppTec has issued a statement suggesting that investors take a pause. By last week, the Chinese pharmaceutical services firm had seen its stock price rise by the exchange’s 10% daily maximum for 15 days in a row, resulting in a sixfold increase. The company claims its business activities are “normal” but warns investors to be aware of the risks associated with the drug services sector. “The price-earnings ratio of the company is higher than that of comparable listed companies,” WuXi notes.
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