Words by GOLD newsdesk
WuXi Biologics has agreed to sell its vaccine production facility in Ireland to Merck & Co for $500m. The sale, confirmed on 6 January 2025, reflects a shift in WuXi’s business strategy amid evolving regulatory landscapes in key markets such as the US.
The Financial Times reported in October that WuXi Biologics and its sister company, WuXi AppTec, were exploring asset sales in light of potential US legislation affecting companies with ties to China. The BIOSECURE Act, which was passed by the US House of Representatives in September, aims to limit federal contracts with Chinese firms and enhance controls over health and genetic data security.
The proposed legislation is part of broader efforts in the US to diversify pharmaceutical supply chains and reduce dependence on Chinese manufacturers for drug ingredients and research services. The bill still requires Senate approval before it can be signed into law, but it was recently excluded from a key defense bill, temporarily reducing immediate pressure on Chinese biotech firms.
Still, many companies are choosing to take action. WuXi Biologics’ recent sale follows a similar move from WuXi AppTec in December, when its cell and gene therapy unit, WuXi Advanced Therapies, was sold to US private equity firm Altaris LLC. The terms of that deal were not disclosed.
Correction: Changed to clarify that WuXi AppTec recently sold WuXi Advanced Therapies, not WuXi Biologics.
