WuXi Biologics has announced plans to sell its vaccine manufacturing facility in Dundalk, Ireland, to Merck & Co. for approximately $500 million. This decision comes against the backdrop of intensifying U.S. legislative efforts to limit WuXi Biologics’ business activities within the United States.

The Dundalk facility has been operating under a long-term agreement to provide vaccine manufacturing services for Merck. Following the sale, the companies anticipate finalizing the transaction in the first half of 2025. Currently employing 200 staff, the site is expected to add 150 new jobs by the end of 2024, according to Ireland's Foreign Direct Investment Agency (IDA).

This move coincides with escalating legislative pressure in the U.S., as exemplified by the proposed Biosecure Act introduced earlier this year by the U.S. House Select Committee. The legislation aims to curb access for Chinese biotechnology firms to U.S. funding and partnerships with American pharmaceutical companies. Its stated goal is to safeguard the personal health and genetic data of Americans and to reduce the U.S. biopharma sector's dependency on Chinese suppliers for pharmaceutical ingredients and research services.

The Biosecure Act successfully passed the U.S. House of Representatives on September 9 and is now awaiting consideration in the Senate. If enacted, it would prohibit U.S. companies from contracting with entities identified as potential national security risks, including WuXi Biologics, WuXi AppTec, and BGI. This could force American pharmaceutical firms to seek alternative service providers, potentially disrupting global biopharma supply chains.

For WuXi Biologics, the divestment of the Dundalk facility represents a strategic move amidst the shifting regulatory landscape. As the global biotechnology industry navigates these challenges, the outcome of the proposed U.S. legislation will likely have significant implications for international collaborations and the future of biopharma manufacturing.