The FINANCIAL — 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
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.