China’s WuXi Biologics to sell Irish vaccine facility to Merck as US curbs loom
US passed Biosecure Act which would ban federal contracts with targeted firms and their business partners. Legislation explicitly names WuXi
China’s WuXi Biologics said on Monday it will sell its vaccine facility in Ireland to US drug maker Merck & Co for about US$500 million, ahead of potential US legislation that would restrict business for Chinese biotech companies.
The US House of Representatives passed the Biosecure Act in September, which would ban federal contracts with targeted firms and their business partners.
“They [WuXi] are looking to reduce their scope and perhaps preparing for reduction in contracts,” said Justin Zelin, an analyst for US trading firm BTIG.
“Especially with the newly entering administration being increasingly hawkish against China specifically … there is broad support for the act conceptually. But it will need to find a larger legislative vehicle to become law,” Zelin said.
