WuXi Biologics Divests Irish Vaccine Facility to Merck for $500 Million Amid Strategic Shift

Sale Agreement:
WuXi Biologics has agreed to sell its vaccine manufacturing facility in Dundalk, Ireland, to Merck for $500 million123.

Strategic Shift:
The sale is part of WuXi Biologics' broader strategic efforts to enhance asset efficiency and focus on CDMO services at its other global sites, particularly in Suzhou, China, and a new plant in Singapore15.

Regulatory Context:
The divestment is influenced by potential regulatory shifts, including the Biosecure Act, which aims to limit US pharmaceutical companies' engagement with Chinese manufacturers15.

Facility Details:
The Dundalk site, operational since 2021, includes drug product and substance manufacturing, as well as a quality control lab, and employs approximately 800 people1.

Merck's Expansion:
The acquisition expands Merck's Irish presence to eight sites, strengthening its global vaccine manufacturing capabilities1.

Proceeds Use:
The sale proceeds will be used for share buybacks, according to Chris Chen, CEO of WuXi Biologics1.

Timeline:
The transaction is expected to close within the first half of 20251.

Sources:

1. https://european-biotechnology.com/latest-news/wuxi-biologics-sells-irish-vaccine-site-to-merck-for-500-million/

2. https://www.contractpharma.com/breaking-news/wuxi-biologics-to-sell-vaccine-facility-in-ireland-to-merck-for-500m/

3. https://endpts.com/wuxi-biologics-to-sell-irish-vaccine-site-to-merck-for-500m/

5. https://www.emjreviews.com/emj-gold/news/wuxi-biologics-offloads-irish-vaccine-plant-to-merck-for-500m/