Key Points
- WuXi AppTec will sell its cell and gene therapy unit, WuXi Advanced Therapies, to Altaris LLC.
- The transaction comes amid U.S. legislative measures targeting Chinese companies over national security concerns.
- The U.S. aims to safeguard Americans’ genetic data and reduce reliance on Chinese firms in pharmaceuticals.
- The deal includes the sale of Oxford Genetics, WuXi ATU’s UK-based entity, to Altaris LLC. Financial details of the agreement remain undisclosed.
China’s WuXi AppTec announced that its subsidiaries have agreed with U.S.-based private equity firm Altaris LLC to sell its cell and gene therapy manufacturing division, WuXi Advanced Therapies (WuXi ATU), for an undisclosed amount. This strategic divestiture comes as Chinese companies, including WuXi, face increasing scrutiny and restrictive measures in the United States over national security concerns.
The move follows a broader geopolitical trend where U.S. lawmakers have introduced measures to reduce American reliance on Chinese firms in critical sectors like pharmaceuticals and biotechnology. In September, the U.S. House of Representatives passed legislation barring federal contracts with specified Chinese companies or entities conducting business with them.
These measures aim to protect Americans’ personal health and genetic data from potential foreign exploitation while encouraging domestic companies to source and manufacture drug ingredients and conduct early-stage research within U.S. borders.
In addition to selling WuXi Advanced Therapies, WuXi AppTec disclosed that it will also divest Oxford Genetics, its UK-based subsidiary within the WuXi ATU business, to Altaris LLC as part of the agreement. This dual sale underscores a strategic pivot for the Chinese pharmaceutical giant as it navigates growing restrictions in international markets.
Neither WuXi AppTec nor Altaris LLC commented on the transaction’s financial details or broader implications. The sale reflects the ongoing adjustments global firms must make to adapt to shifting regulatory and geopolitical landscapes, particularly in sectors tied to advanced medical research and technology.
The deal is expected to have significant implications for WuXi AppTec, allowing the company to streamline its operations amid rising global challenges. At the same time, Altaris LLC, a major player in healthcare investments, may leverage these assets to expand its cell and gene therapy manufacturing footprint.
