WuXi to sell CGT manufacturing unit to US-based Altaris LLC

At the tail end of 2024, Chinese-based CDMO WuXi AppTec announced the signing of their deal with private equity firm Altaris LLC, confirming the sale of WuXi Advanced Therapies, the cell and gene therapy manufacturing arm of WuXi AppTec. 

While details of the deal are still under wraps, some suspect the move to be in response to the recent BIOSECURE Act restricting the activities of Chinese-based companies such as WuXi AppTec in the US. The Act prohibits federal contracts with targeted Chinese firms and the US companies that conduct business with them. Legislators claim the Act aims to protect American personal health and genetic data from ‘foreign adversaries’, as well as push the US pharmaceutical and biotechnology sectors to be less reliant on outsourced drug development and manufacturing. 

WuXi Advanced Therapies has acted as the contract testing, development, and manufacturing unit of WuXi offering advanced platforms and end-to-end solutions for the cell and gene therapy discovery and development pipeline, including testing, manufacturing, and commercialisation. WuXi AppTec have stated that all other operational units, including WuXi Chemistry, WuXi Biology, and WuXi Testing, remain unchanged. The deal is expected to be complete within the first half of 2025. CEO of WuXi Advanced Therapies Edward Hu commented that “[The] agreement is a positive step forward for the vital services that ATU (Advanced Therapies) provides. Altaris is committed to growing the ATU businesses by supporting its employees, customers, and patients. At the same time, WuXi AppTec will remain laser-focused on our ‘follow-the-customer' and 'follow-the-molecule' strategies, as we continue to move toward our vision that ‘every drug can be made and every disease can be treated.’” 

WuXi AppTec have also announced that they will be selling UK-based Oxford Genetics, the operating entity of WuXi ATU for the UK, to Altaris LLC.  

Sources: 

[1] China’s WuXi to sell Advanced Therapies unit amid US restrictions [Accessed January 3, 2025] https://www.reuters.com./technology/chinas-wuxi-sell-advanced-therapies-unit-us-private-equity-firm-2024-12-24/  

[2] WuXi AppTec Signs Definitive Agreement to Sell WuXi Advanced Therapies to Altaris LLC [Accessed January 3, 2025] https://www.wuxiapptec.com/news/wuxi-news/6008