WuXi AppTec sells off cell and gene therapy operations in US, UK

WuXi AppTec said Tuesday that the US and UK operations of its Advanced Therapies business — which provides contract testing, development, and both clinical and commercial manufacturing services for cell and gene therapies — will be bought by Altaris, a healthcare-focused investment firm. 

The Chinese contract development and manufacturing organisation (CDMO) said that its flagship chemistry, biology, and testing offerings will remain unchanged. The sale of its Advanced Therapies unit is expected to close in the first half of 2025, and the business will be renamed and headquartered in the US.  

The sale comes the same month that the company appeared to avoid a legal crackdown in the US. Although lawmakers in the US House passed the BIOSECURE Act in September, aimed at preventing WuXi AppTec and four other Chinese companies "of concern" from holding federally funded contracts, the legislation was left out of a key defense bill in December. 

WuXi AppTec, along with WuXi Biologics, BGI Group, MGI Tech and Complete Genomics were identified in the proposed legislation as risks to US national security due to alleged ties to the Chinese government and military.

WuXi AppTec may also be feeling some pressure from a shifting CDMO landscape. Swiss firm Lonza announced recently that it plans to exit the capsules and health ingredients business to focus exclusively on its CDMO services. Additionally, Novo Nordisk's controlling shareholder, Novo Holdings, completed its $16.5-billion acquisition of CDMO Catalent, handing the Danish drugmaker three new manufacturing sites.