USA—Chinese biotech firm WuXi Biologics has announced plans to sell its vaccine manufacturing facility in Dundalk, Ireland, to U.S. pharmaceutical giant Merck & Co. for approximately US$500 million.
The move is part of WuXi’s strategy to optimize operations and improve profitability while addressing ongoing geopolitical tensions.
This decision comes at a time when U.S. lawmakers are considering the Biosecure Act, a proposed legislation aimed at limiting business activities with Chinese biotech firms.
The Act, passed by the U.S. House of Representatives in September, seeks to prevent federal contracts with certain Chinese companies, including WuXi, and their business partners.
Its primary goal is to protect Americans’ personal health and genetic data from foreign adversaries while encouraging U.S. pharmaceutical companies to reduce reliance on China for drug ingredients and early-stage research.
However, the bill must still gain Senate approval and be signed by the president to become law.
The facility in Ireland, which has been under construction since 2019, was initially intended to cater to Merck’s manufacturing needs.
According to a statement filed with the Hong Kong Stock Exchange, the site spans 15,520 square meters. It includes production areas for drug substances and products, as well as quality control laboratories.
Currently employing around 200 staff, Merck plans to add another 150 employees following the acquisition.
By integrating the Irish site into its global manufacturing network, Merck aims to streamline vaccine production to serve international markets better.
Meanwhile, WuXi Biologics will focus on offering contract vaccine manufacturing services from its facilities in Suzhou, China.
This sale aligns with WuXi’s broader efforts to adapt to the challenging business environment.
In December 2024, its sister company, WuXi AppTec, agreed to sell its U.S. and U.K.-based cell and gene therapy operations to the American private equity firm Altaris LLC.
WuXi Biologics’ shares fell by 3% following the announcement, continuing a downward trend that began after the Biosecure Act was introduced in late 2023.
Despite this, Jefferies analysts noted that the sale of the Irish facility, valued at US$487 million, is not directly impacted by the legislation.
Completion of the transaction is expected in the first half of 2025.
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