THE Hong Kong-listed shares of biotechnology company Wuxi Biologics (Cayman) Inc. tumbled Thursday amid investors’ worries over its inclusion on a U.S. “unverified list.”

Wuxi Biologics closed the day down 5.36 percent at HK$58.30 (US$7.48), taking losses to more than 25 percent this week after the U.S. Commerce Department said Monday it was unable to verify end-use information of two Wuxi Biologics units.

Inclusion on the department’s list means U.S. exporters will now need a license if they want to ship products to Wuxi Biologics’ two units.

Shares of WuXi Biologics plunged more than 30 percent Tuesday morning before trading was halted. The poor performance of Wuxi Biologics’ shares came even as analysts suggest the company’s medium-term potential for earnings growth and stock-price gains remains high.

Daiwa Capital on Thursday downgraded the stock to outperform from buy while cutting its target price to HK$75 from HK$167, as it thinks the inclusion could cloud the biotechnology company’s growth outlook.

But Nomura said this week that it is maintaining its buy call and HK$149.92 target price on “highly visible revenue and earnings growth” through 2024.

The investment bank believes Wuxi Biologics’ ability to manage risks from suppliers will help it overcome overhang from inclusion on the list in the short term.

U.S. bank Jefferies also kept a buy rating and HK$200 target price, saying the stock’s 23 percent decline Tuesday was a “golden opportunity” for investors to accumulate shares.

WuXi Biologics said Tuesday that it sees no impact on its business after two of its subsidiaries were placed on the U.S. “unverified list.” (SD-Agencies)