WuXi Biologics to Sell Irish Facility to Merck for $500M

• WuXi Biologics’ subsidiary WuXi Vaccines is divesting its Dundalk, Ireland, manufacturing facility to Merck for $500 million.

• The sale aligns with WuXi Biologics’ strategy to streamline assets and fund share buybacks.

WuXi Biologics, through its subsidiary WuXi Vaccines, has agreed to sell its manufacturing facility in Dundalk, Ireland, to Merck for $500 million. The deal is expected to close in the first half of the year, according to a company press release.

The facility, which became operational in 2021, was originally built for $240 million under a partnership between WuXi Vaccines and Merck. Employing approximately 800 people, the site includes a quality control lab and capabilities for drug product and substance manufacturing.

WuXi Biologics plans to use proceeds from the sale to fund share buybacks, said CEO Chris Chen. The Dundalk site had been “almost fully booked” with customers for 2025, as noted in the company’s August 2024 half-year report.

This move comes amid broader restructuring by WuXi Biologics and its sister company WuXi AppTec, as the companies navigate potential challenges posed by the proposed Biosecure Act. If enacted, the legislation could limit US pharmaceutical companies from collaborating with Chinese manufacturers.

Merck’s acquisition of the Dundalk facility will expand its presence in Ireland, bringing its total number of sites in the country to eight. WuXi Vaccines, meanwhile, continues operations at its Suzhou, China site and is constructing a new facility in Singapore.