Reports emerged last week in the Financial Times suggesting that WuXi AppTec (HKG: 2359) and WuXi Biologics (HKG: 2269) are contemplating the sale of certain US and European assets due to the anticipated negative implications of the Biosecure Act, which is currently under review in the US legislative process. Both companies have been identified as “biotech companies of concern” in drafts of the proposed legislation, which would prohibit US companies/entities receiving federal funds from engaging with them if enacted.
WuXi AppTec is reportedly in the process of selling its cell and gene therapy manufacturing division, WuXi Advanced Therapies, which has been on the market for several months. The unit operates four laboratories and manufacturing facilities in Philadelphia, with negotiations underway between rival contract manufacturers to acquire some or all of the related assets.
WuXi Biologics, on the other hand, is said to be gauging the market demand for its services among European clients. The company is mulling over the potential sale of certain assets, including two plants in Germany that were previously acquired from Bayer AG. However, according to sources, this decision is far from final, as the demand for WuXi Biologics’ services has largely remained robust globally, notwithstanding recent geopolitical tensions.- Flcube.com
