WuXi Biologics Options See Frenzy Amid US Policy Uncertainty

Traders have piled into options on WuXi Biologics Cayman Inc. to protect against potential swings, with its sister company’s earnings in focus on Tuesday.

Implied volatility for WuXi Biologics three-month options is hovering near the two-year highs reached in early February after draft legislation emerged that would block certain foreign biotech companies from accessing US federal contracts. That would largely cut off WuXi Biologics and sister company WuXi AppTec Co. from the market that generates more than half of their revenue.