WuXi Biologics Sells German Plant to Terumo, Refocuses on Singapore Operations

In a significant move that reshapes the landscape of contract development and manufacturing organizations (CDMOs), WuXi Biologics has announced the sale of its Leverkusen, Germany facility to Japanese CDMO Terumo for 150 million euros ($167 million). This strategic divestment marks the conclusion of WuXi Biologics' comprehensive review of its global assets and signals a shift in focus towards its expanding operations in Singapore.

WuXi Biologics Streamlines Global Footprint

WuXi Biologics' decision to sell its German plant is part of a broader strategy to optimize its global manufacturing network. The company states that this move will allow it to "exclusively focus" on building large-scale drug product manufacturing capacities in Singapore while enhancing returns on assets for future growth.

This sale follows a similar transaction earlier this year when WuXi Biologics sold a vaccine plant in Ireland to Merck & Co. for 500 million euros ($521 million). The company's CEO, Chris Chen, expressed optimism about the future, anticipating "accelerated and profitable growth in 2025 and beyond" as stated in the March full-year earnings report.

Terumo Expands Global Presence

For Terumo, the acquisition of the Leverkusen facility represents a significant step in its global expansion strategy. The 13,000-square-meter (140,000-square-feet) plant will serve as Terumo's first overseas production base, complementing its existing three sites in Japan.

Terumo CEO Hikaru Samejima emphasized the strategic importance of this acquisition, stating, "The acquisition of the drug product plant is a pivotal step in enhancing the competitiveness of our CDMO business. By integrating the high-quality and stable production operations of the Leverkusen plant and the exceptional talent supporting it with Terumo, we are confident that we will significantly elevate the global responsiveness of our CDMO business."

The German facility comes equipped with state-of-the-art technology and a team of 150 highly skilled employees. Terumo plans to leverage this acquisition to develop and produce pre-filled syringes and vial products, addressing the growing demand for such services in Europe and the United States.

Industry Implications and Future Outlook

This transaction reflects the ongoing consolidation and strategic repositioning within the CDMO sector. As WuXi Biologics concentrates its efforts on its ambitious Singapore project—a massive CRDMO center that will add 120,000 liters of manufacturing capacity—the company aims to offer end-to-end biologics research, development, and manufacturing solutions from a centralized location.

Meanwhile, Terumo's expansion into Europe positions the company to compete more effectively in the global CDMO market. The company has been actively expanding its production capabilities, with recent additions to its facilities in Yamaguchi and ongoing expansions at its Kofu factory in Japan.

As these industry leaders realign their global strategies, the pharmaceutical manufacturing landscape continues to evolve, promising increased capacity and capabilities to meet the growing demands of the biopharmaceutical industry.