WuXi AppTec Sells Gene Therapy Unit to Altaris LLC

(Reuters) – China's WuXi AppTec announced on Tuesday that its subsidiaries have entered into a deal with U.S.-based private equity firm Altaris LLC for the sale of its cell and gene therapy manufacturing unit, WuXi Advanced Therapies, for an undisclosed amount.

The transaction occurs amidst new U.S. laws aimed at limiting the operations of Chinese firms in the U.S. due to national security concerns. In September, the U.S. House of Representatives passed a bill prohibiting federal contracts with targeted companies and those associated with them.

These legislative measures are intended to protect Americans' personal health and genetic data from foreign adversaries and encourage U.S. pharmaceutical and biotech companies to reduce reliance on China for drug ingredient manufacturing and early research.

In addition, WuXi intends to sell Oxford Genetics, its UK-based operation, to Altaris LLC.

Altaris has not commented further on the deal, while WuXi AppTec did not respond to a request for comments from Reuters.