Amid BIOSECURE Act speculation, WuXi AppTec sells unit

China's WuXi AppTec has agreed to sell a business unit serving the cell and gene therapy (CGT) sector to private equity firm Altaris for an undisclosed sum.

The contract development and manufacturing organisation (CDMO) is selling the US and UK-based operations WuXi Advanced Therapies, including Oxford Genetics, to the investment group, but said its other chemistry, biology, and analysis operations will "remain unchanged."

The transaction – announced on Christmas Eve – comes after WuXi AppTec has been thrust into the US political spotlight as a named company in the BIOSECURE Act which, if enacted, will prohibit businesses in the US from contracting with various Chinese firms on national security grounds.

Recently passed by the House of Representatives, the Act would prohibit the federal government from contracting with, or providing grants to, companies that do business with a "biotechnology company of concern," specifically WuXi AppTec, WuXi Biologics, and BGI Group as well as its subsidiaries MGI Tech and Complete Genomics.

While it has fairly wide support among lawmakers on both sides of the US political divide, it failed to make it onto the amendments of the mammoth $886 billion National Defense Authorisation Act (NDAA) earlier this month and is likely to expire before incoming US President Donald Trump Takes office next month. It's fate thereafter is uncertain.

WuXi AppTec made no mention of the legislation in its announcement of the sale of the CGT business, which offers services like viral vector manufacturing, cell therapy process development and manufacturing, and biosafety testing.

The head of the unit, Edward Hu, said going into private equity hands will be "a positive step forward for the vital services" that WuXi Advanced Therapies provides, noting that Altaris is "committed to growing the…businesses by supporting its employees, customers and patients."

He also said that the remaining WuXi AppTec business would remain "laser-focused" on its CDMO offerings.

WuXi Advanced Therapies was the first CDMO approved by the FDA to manufacture T-cell therapy for solid tumour cancers, said Altaris, which has owned 11 companies providing manufacturing support for the biopharma industry over the last couple of decades.

The transaction is expected to close in the first half of 2025, subject to satisfaction of customary closing conditions and receipt of required regulatory approvals. Once the takeover is completed, the business will be renamed and headquartered in the US, operating as a fully owned portfolio company of Altaris.