NEWS
Embattled WuXi trims footprint
WuXi AppTec has agreed to sell the US- and UK-based operations of WuXi Advanced Therapies ( ATU ), its cell and gene therapy unit , to healthcare investment firm Altaris . Separately , its WuXi Biologics subsidiary is to sell its vaccine facility in Dundalk , Ireland , for $ 500 million . Both deals should close within 1H 2025 .
The sales have been linked to the US Biosecure Act , which the House of Representatives passed in September . If it eventually is supported by the Senate and becomes law , the act will prevent the WuXi companies , among others in China , from obtaining federal contracts and collaborating with biopharma firms with them . It is already said to be having an effect on the group ’ s sales .
In announcing the ATU sale , CEO Edward Hu said that Altaris is committed to growing the businesses , while WuXi AppTec “ will remain laserfocused on our ‘ follow-the-customer ’ and ‘ follow-the-molecule ’ strategies ,
Dundalk will become Merck ' s eighth site in Ireland
as we continue to move toward our vision that ‘ every drug can be made and every disease can be treated ’”.
The Dundalk site was built in partnership with Merck in 2021 and employs about 800 . It makes both drug product and drug substance , and is said to be nearly fully booked for 2025 . WuXi will use the proceeds of the sale to buy back shares and strengthen its global operations and CDMO services .
SOCMA reveals its wish list
SOCMA , the trade association of the US speciality chemical manufacturing industry , has published an open letter to the pending Trump administration , urging it to “ prioritise policies that encourage advancement , streamline regulatory processes and incentivise domestic manufacturing ”. In particular , it asked the administration to :
• Streamline the EPA ’ s New Chemicals Review Process to unlock new chemistries
• Open tariff exclusion processes for inputs and raw materials not available in the US
• Reinstate the R & D tax credit to apply in the tax year of the expenditure
• Support reauthorisation of the CFATS programme , affirming that regulatory authority resides with the Department of Homeland Security . “ Our sector brings critical capabilities to the table : rapid production , advanced innovation , and the agility to meet emerging national needs ,” SOCMA said . “ We view this moment as a unique opportunity to contribute meaningfully to strengthening US manufacturing and securing resilient domestic supply chains .”
The speciality chemical industry , the association added , “ is well-positioned to help the administration achieve high-priority goals . Our industry ’ s capacity for contract and custom manufacturing means we ’ re ready to reshore production immediately , without the delays associated with lengthy permitting processes or major capital investments .”
However , SOCMA subsequently stated that it believes that broad tariffs , as proposed by the incoming administration , “ are not the right approach ” to strengthening manufacturing in the US because they would disrupt existing supply chains , including those established under the US-Mexico-Canada Agreement ( USMCA ), and raise costs .
“ While it ’ s important to reduce reliance on foreign suppliers for supply chain security , some materials simply can ’ t be sourced domestically ,” SOCMA said . “ Tariffs on these essential inputs raise costs for manufacturers , stifling innovation and harming US competitiveness in global markets . Should the administration move forward with these broad tariffs , we urge them to create a clear and efficient process for excluding materials that aren ’ t available in the US .”
JAN / FEB 2025 SPECCHEMONLINE . COM
11