WuXi AppTec Co., Ltd (SHA: 603259, HKG: 2359, OTCMKTS: WUXAY), a leading China-based Contract Development and Manufacturing Organization (CDMO), has issued a statement addressing media speculations about the potential sale of its cell and gene therapy segment, WuXi Advanced Therapies (WuXi ATU). The company clarified that no decision has been made regarding the sale, and there are no binding agreements with any party at this time.
According to the Financial Times, WuXi AppTec and its affiliate WuXi Biologics (HKG: 2269, OTCMKTS: WXXWY) have been contemplating the sale of some operations due to the Biosecure Act, which threatens to prohibit US government-contracted drugmakers from utilizing their services post-2032. WuXi AppTec has reportedly put WuXi ATU, operational with four laboratories and manufacturing plants in Philadelphia, on the market. In parallel, WuXi Bio is reportedly seeking interest in some of its European production facilities with the help of advisors.
WuXi AppTec emphasized in its statement that it is currently exploring various options to ensure the continued operation of WuXi ATU. The company’s primary concern in this evaluation is the welfare of WuXi ATU’s employees and the global patients relying on its life-saving treatment plans. The statement acknowledged the uncertainty surrounding the final decision, whether it involves the sale of WuXi ATU or the pursuit of alternative strategies to sustain the business.- Flcube.com
