China's WuXi Ponders Sale of US Pharma Operations, FT Says

The targeting of WuXi AppTec and WuXi Biologics by US lawmakers on national security grounds has led to the Chinese biotech companies planning to sell some of their operations, a report said on Thursday.

WuXi AppTec has put its cell and gene therapy manufacturing unit WuXi Advanced Therapies, which operates four laboratories and manufacturing facilities in Philadelphia, up for sale, the Financial Times reported, citing people familiar with the matter.

WuXi Biologics is working with advisers to test interest in some of its European production facilities, FT said.

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Wuxi AppTec and Wuxi Biologics did not immediately respond to a Reuters request for comment.

The US House of Representatives passed a bill last month aiming to restrict business with China’s WuXi AppTec and several other biotech companies on national security grounds.

The Biosecure Act was passed by 306 to 81 votes, topping the two-thirds majority needed, following which it must pass the US Senate before it can be sent to President Joe Biden to be signed into law.

Supporters have said that the US needs to reduce its reliance on China in its medical supply chain, while opponents say the biotech bill will have a big impact on pharmaceutical supplies, according to report by AP.

Companies fear the bill will delay clinical trials, raise the cost of medicines and slow the development of new drugs.

But supporters say the bill gives US firms eight years to decouple from companies in China such as WuXi AppTec and WuXi Biologics.

China’s foreign ministry has described the bill as “discriminatory”, saying that the US should stop making “excuses” to suppress Chinese enterprises.