Wuxi AppTec and Merck have reached an agreement regarding the Irish vaccine factory.
AInvestMonday, Jan 6, 2025 7:50 am ET
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On January 6, Wuxi Vaccines (Wuxi AppTec) announced an agreement with MSD International GmbH regarding its Irish vaccine factory. Under the agreement, MSD will acquire Wuxi Vaccines' Irish vaccine factory for a total transaction amount of approximately US$500mn. Wuxi Vaccines is a wholly-owned subsidiary of Wuxi AppTec (02269), focusing on vaccine contract development and manufacturing (CDMO) business.In 2019, Wuxi Vaccines announced an investment in Ireland for MSD to build a dedicated vaccine factory, including raw material production (DS), formulation production (DP), production technology laboratory (MS&T) and quality control laboratory (QC). This modern factory started technology transfer in 2022 to produce high-quality vaccines for the global market. The quality control potency laboratory won the "Project of the Year" award in the 2020 Irish Pharmaceutical Industry Awards for its innovative design and was granted GMP certification by the Irish Health Products Regulatory Authority (HPRA) in July 2022. The main production facilities (including formulation, raw material production facilities, quality control main laboratory, warehouse and utilities) will be granted HPRA GMP certification in 2025.Dr. Chen Zhisheng, Chairman of Wuxi Vaccines, said that the factory adopted world-class design and construction, fully supporting MSD's business growth strategy. This transaction fully proves our ability to build and operate world-leading complex vaccine production facilities according to the highest international standards of global vaccine giants. Through this transaction, MSD can better integrate its vaccine production into its global production network. Wuxi Vaccines can further enhance its asset efficiency and profitability, focusing on providing CDMO services to its clients at its China Suzhou base. The proceeds from this transaction can be used to further enhance our global network and better serve our global clients and benefit patients worldwide, as well as for the Company's share buyback.This transaction is expected to be completed upon satisfaction of customary closing conditions in the first half of 2025. This transaction will have no impact on the biopharmaceutical factory in Ireland and the vaccine factory in Suzhou.

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