WuXi Biologics CEO Chris Chen

Look­ing to build a 'd­ual sourcing' sup­ply chain, WuXi Bi­o­log­ics shells out $183M for Bay­er drug sub­stance plant

Bi­o­log­ics have been par­tic­u­lar­ly hot in 2020 with big drug­mak­ers look­ing to bol­ster their port­fo­lio — a trend that has been a se­ri­ous boon for con­tract man­u­fac­tur­ers. WuXi Bi­o­log­ics start­ed off the year adding to its own pro­duc­tion ca­pac­i­ty in Ger­many to keep up with that ex­pect­ed de­mand, and now it’s go­ing back to Deutsch­land for an­oth­er ex­pan­sion.

Shang­hai-based Wuxi will drop rough­ly 150 mil­lion eu­ros—or $183.3 mil­lion— in an ac­qui­si­tion deal for Bay­er’s 330,000 square-foot drug sub­stance fa­cil­i­ty in Wup­per­tal, Ger­many, as it seeks to en­hance a sup­ply net­work of Covid-19 vac­cines and oth­er bi­o­log­ics. The newest fa­cil­i­ty will al­so add to WuXi’s “glob­al dual sourc­ing” strat­e­gy to add re­dun­dan­cy in­to its sup­ply chain, CEO Chris Chen said in a re­lease.

Endpoints News

Unlock this article instantly by becoming a free subscriber.

You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.