WuXi AppTec and WuXi Biologics to Sell Operations

(Reuters) – WuXi AppTec and WuXi Biologics (HK:2269) are planning to sell some of their operations after being targeted by the U.S. on national security grounds, according to the Financial Times.

WuXi AppTec has put its cell and gene therapy manufacturing unit, WuXi Advanced Therapies, up for sale. This unit operates four laboratories and manufacturing facilities in Philadelphia, as reported by the newspaper, which cited sources familiar with the matter.

Meanwhile, WuXi Biologics is working with advisers to gauge interest in some of its European production facilities, FT noted.

Neither WuXi AppTec nor WuXi Biologics responded immediately to a Reuters request for comment.

Last month, the U.S. House of Representatives passed a bill aimed at restricting business with WuXi AppTec and several other Chinese biotech companies on national security grounds. The bill passed with a vote of 306 to 81, exceeding the two-thirds majority needed. It must now pass the U.S. Senate before being sent to President Joe Biden for signature.

China’s foreign ministry has characterized the bill as discriminatory and urged the U.S. to cease making excuses to suppress Chinese enterprises.