Reuters reported on Tuesday (December 24) that Chinese biotechnology company WuXi AppTec announced its subsidiary, WuXi Biologics, has signed an agreement with the American private equity firm Altaris LLC to sell its cell and gene therapy manufacturing division WuXi Advanced Therapies (WuXi ATU). The specific transaction amount has not been disclosed.
Amid accusations of threatening national security by the Chinese Communist Party, the United States continues to enact new laws and regulations in response. Like other Chinese companies, WuXi AppTec’s operations in the United States are subject to restrictions.
In September, the U.S. House of Representatives passed the “Biosecure Act,” which prohibits federal contracts with specific companies and those doing business with them.
These laws aim to prevent foreign entities from accessing Americans’ personal data, while also promoting reduced reliance on China for various aspects of pharmaceutical and biotechnology companies, from manufacturing drug components to early-stage research.
The “Biosecure Act” specifically mentions Chinese companies including WuXi AppTec and WuXi Biologics, and restricts cooperation with domestic companies.
According to the Financial Times on October 3, sources reported that WuXi AppTec has sold its cell and gene therapy manufacturing division WuXi ATU, which has four labs and manufacturing facilities in Philadelphia.
On Tuesday, WuXi AppTec also stated that Oxford Genetics, the operational entity of WuXi ATU based in the United Kingdom, has been sold to Altaris LLC.
Both WuXi AppTec and Altaris LLC have not responded to Reuters’ requests for comments.