Bayer sells a facility at its Wuppertal site to WuXi Biologics
Companies to also enter into long-term sublease agreement and service contract / Buyer planning to use facility to produce COVID-19 vaccine and other biologics
Wuppertal/Leverkusen, December 21, 2020 - Bayer is selling a biologics substance facility at the Wuppertal site of its Pharmaceuticals Division to a German subsidiary of WuXi Biologics. Under the agreement the two companies announced on Monday, they will also enter into a long-term sublease agreement and a transitional service contract. WuXi Biologics intends to use the facility to manufacture drug substances for COVID-19 vaccines and other biologics and is planning additional investments in process equipment at the site.
Bayer will provide services and contribute its own resources as WuXi Biologics ramps up the plant for the production of vaccines and other biologics. "This also marks an additional contribution by Bayer in the fight against the pandemic," said Bayer site manager Timo Flessner.
The volume of the transaction, including the sublease agreement, amounts to approximately 150 million euros. The transaction, which is subject to regulatory approval, is expected to close in the first half of 2021. Bayer had originally planned to use the facility to produce recombinant factor VIII products.
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. At the same time, the Group aims to increase its earning power and create value through innovation and growth. Bayer is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2019, the Group employed around 104,000 people and had sales of 43.5 billion euros. Capital expenditures amounted to 2.9 billion euros, R&D expenses to 5.3 billion euros. For more information, go to www.bayer.com
About WuXi Biologics
WuXi Biologics (stock code: 2269.HK), a Hong Kong-listed company, is a leading global open-access biologics technology platform offering end-to-end solutions to empower organizations to discover, develop, and manufacture biologics from concept to commercial manufacturing. The company’s history and achievements demonstrate its commitment to providing a truly one-stop service offering and strong value proposition to its global clients. As of June 30, 2020, there were a total of 286 integrated projects, including 141 projects in pre-clinical development stage, 125 projects in early-phase (phase I and II) clinical development, 19 projects in late-phase (phase III) development and one project in commercial manufacturing. With total estimated capacity for biopharmaceutical production planned in China, Ireland, the U.S., Germany, and Singapore exceeding 280,000 liters after 2023, WuXi Biologics will provide its biomanufacturing partners with a robust and premier-quality global supply chain network. For more information about WuXi Biologics, please visit: www.wuxibiologics.com.
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