WuXi Biologics Sells Irish Vaccine Site to Merck for $500m

WuXi Biologics has announced the sale of its Dundalk, Ireland-based vaccine manufacturing facility to Merck for US$500 million. This news comes shortly after its parent company, WuXi AppTec, revealed plans to reduce its operational footprint.

The transaction is expected to close within the first half of 2025. Proceeds from the sale will be used for share buybacks, according to Chris Chen, CEO of WuXi Biologics.

The Dundalk site, which has been operating since 2021 and was initially built with an investment of US$240 million under a partnership with Merck, was nearly fully booked for 2025, with a robust client pipeline. It houses drug product and substance manufacturing, as well as a quality control lab. The site employs approximately 800 people. Merck’s acquisition expands its Irish presence to eight sites, further strengthening its global vaccine manufacturing capabilities.

The sale follows broader strategic efforts by both WuXi Biologics and its sister company, WuXi AppTec, to divest assets in light of potential regulatory shifts, particularly related to the Biosecure Act. This Act, if passed, would prohibit US pharmaceutical companies from engaging with Chinese manufacturers, including WuXi, which relies heavily on US customers.

“The world-class facility is designed and built to support MSD’s business growth strategy, and this transaction highlights our capability of building and operating the state-of-the-art complex vaccine manufacturing facilities meeting stringent standards of global vaccine leaders,” stated Dr. Chris Chen, Chairman of WuXi Vaccines. He added that the transaction allows MSD to integrate vaccine production more effectively into its global manufacturing network and enables WuXi to enhance asset efficiency, focus on CDMO services in Suzhou, China, and utilise proceeds to strengthen its global operations and CDMO services.

WuXi Vaccines continues to operate a manufacturing facility in Suzhou, China, and is constructing a new plant in Singapore to focus on its CDMO services and enhance efficiency.