WuXi Biologics plans to sell its vaccine facility in Dundalk, Ireland to Merck & Co. for approximately $500 million.

This comes as U.S. legislation aims to restrict WuXi Biologics business in the U.S.

WuXi Biologics provided services for Merck at the site in Dundalk under a long-term contract to produce vaccines.

The companies expect to complete the transaction in 1H25. The facility, which currently employs 200, will house an additional 150 workers by the end of this year, according to Ireland’s Foreign Direct Investment Agency (IDA).

In January of this year, the U.S. House Select Committee introduced the Biosecure Act, which intends to prevent Chinese biotechnology companies from accessing U.S. funding and collaborating with pharma companies. The bill aims to safeguard personal health and genetic information of Americans from foreign adversaries. It also aims to have U.S. pharma and biopharma companies reduce their reliance on China for pharmaceutical ingredients and early research services.

Having passed the House of Representatives on September 9, the bill heads to the Senate. The Biosecure Act would prohibit contracting with certain companies deemed potential national security risks, including BGI, WuXi AppTec, WuXi Biologics, and others. These companies provide contract research and manufacturing services for global pharma and biopharma firms, meaning U.S. companies would need to find new service providers.

Read More: U.S. House of Representatives Passes the BIOSECURE Act