1.2 Billion RMB! WuXi Biologics Sells German Factory

On May 14, WuXi Biologics and Terumo Corporation (“Terumo”) jointly announced that Terumo will acquire WuXi Biologics’ biopharmaceutical factory located in Leverkusen, Germany for 150 million euros (approximately 1.2 billion RMB).

This German factory was originally a Bayer asset. WuXi Biologics purchased it in 2020 at the same price and conducted a large-scale expansion. The production capacity was increased from 12,000 liters to 24,000 liters, equipped with advanced aseptic filling lines and freeze-drying preparation equipment, with an annual capacity of up to 10 million vials. The site covers about 13,000 square meters and currently employs around 150 people. After the transaction, all staff will be transferred to Terumo.

This acquisition is significant for Terumo as it marks its first overseas CDMO site. The company plans to fully commission the factory by 2030 and actively undertake orders from major European pharmaceutical companies. As one of the global leaders in medical devices, Terumo showed steady performance in fiscal year 2024, with sales increasing by 10% year-over-year. Cardiovascular system equipment and chronic disease management products (such as insulin pumps and blood glucose monitors) have become core growth drivers. In mature markets such as North America and Europe, Terumo’s high-end products continue to gain recognition, and in 2024, it secured its first overseas pharmaceutical orders, demonstrating initial success in its globalization strategy.

The Nikkei Chinese website noted that Terumo plans to complete the acquisition by fiscal year 2025 (ending March 2026). The factory covers 13,000 square meters, and about 150 employees will transfer to Terumo. The factory will produce prefilled syringes in the future.

For WuXi Biologics, selling this factory is a key part of its global capacity optimization strategy. Public data shows that WuXi Biologics’ total planned capacity in the future is close to 500,000 liters, with overseas capacity accounting for 40%. From a global capacity layout perspective, WuXi Biologics has built a large and detailed network. Its capacity footprint extends from Asia to Europe and the Americas, with regional bases coordinating to provide clients worldwide with full-process services from drug discovery to commercial production.

Currently, WuXi Biologics has established a CRDMO platform covering the entire industry chain worldwide, with 4 research centers, 8 development centers, and 9 production bases.

In Asia

China, as the origin and important base of WuXi Biologics, hosts multiple key production bases, such as Wuxi Mashan Base and Zhejiang Base. The under-construction Singapore CRDMO center is planned with a capacity of 120,000 liters and will become an important base serving the Asia-Pacific and global markets. The subsidiary WuXi Heli Modular Factory’s installation was recently completed, with important utilities in the final stages of design and construction.

In Europe

All three production facilities at the Ireland biological base have received GMP certification from the Health Products Regulatory Authority (HPRA) of Ireland and successfully completed multiple 16,000-liter scale PPQ productions. The base started commercial production in 2024.

In North America

The Worcester, Massachusetts base (MFG11) in the United States will continue to build a future biopharmaceutical factory, installing six 6,000-liter SUT bioreactors connected to a single downstream production line, achieving high output and high automation. It is also one of the largest US production bases applying SUT technology. Once completed, this base will interact with the Cranbury, New Jersey base (MFG18) and the Boston research service center to establish an end-to-end service capability in the US from research, development, clinical production to commercial production, better serving global clients.

Financial Highlights

The latest financial report shows that in 2024, WuXi Biologics achieved total revenue of 18.675 billion RMB, a year-over-year increase of 9.6%; net profit was 3.945 billion RMB, up 10.5%. Excluding COVID-19 related revenue, non-COVID business grew 13.1% year-over-year, demonstrating fundamental resilience. Notably, preclinical research service revenue increased by 30.7% year-over-year, accounting for 37.8% of total revenue, becoming a major growth driver. By region, North American market revenue increased 32.5% year-over-year, contributing 57.3% of total revenue, becoming the growth engine.

WuXi Biologics stated that the decision to divest the Leverkusen factory is based on the company’s long-term development strategy, which will help improve operational agility and expand diversified solutions to meet the growing new demands of global clients. It is worth mentioning that in January this year, WuXi Biologics’ wholly owned subsidiary WuXi HyBio sold its Ireland vaccine factory to Merck for 500 million USD, signaling another strategic adjustment.