WuXi Biologics and WuXi AppTec are discussing the potential sale of some of their manufacturing units as the BIOSECURE Act looms in the background, as per a news report.

WuXi AppTec has put its cell and gene therapy manufacturing unit WuXi Advanced Therapies, on sale, as reported by the Financial Times. The subsidiary includes four laboratories and manufacturing facilities in Philadelphia, according to three undisclosed sources familiar with the operations quoted in the Financial Times article. The sources shared that WuXi has had discussions surrounding the sale for months with some competitor contract manufacturing organisations (CMOs), with rivals potentially interested in the acquisition of WuXi’s assets.

WuXi Biologics is also investigating interest in some of its European production facilities, which may be associated with dampened interest. The company shared that European revenues have sunk by 27% in H1 2024 compared to 2023, to Rmb1.8bn ($260m), in a June statement.

The two companies are amongst the five major targets of the US BIOSECURE Act, a bipartisan bill that would prevent US pharmaceutical companies from conducting business with companies considered to pose a threat to national security. A grandfather clause would allow ongoing contracts to continue until January 2032.

Last month, the US House of Representatives passed their version of the bill to limit business with US Chinese service companies. House members voted 306 to 81 votes in favour of the legislation, allowing it to move to the US Senate. If approved, the legislation will then be sent to President Joe Biden to pass the act into law.

“The US needs to abandon ideological bias, respect the principles of market economy and trade rules, stop advancing that bill, and stop suppressing Chinese companies under various pretexts,” said Mao Ning, a spokesperson for China’s foreign ministry at a 10 September press conference. She described the bill as a “discriminatory” measure.