Merck Purchases WuXi Vaccine Plant in Ireland for $520 Million

In a transaction expected to close the first half of the year, Merck, known as MSD outside of the United States and Canada, will be purchasing WuXi Vaccines’ 167,000 square-foot manufacturing plant in Dundalk, Co Louth in Ireland.1 The investment indicates MSD’s interest in long-term expansion in that country, and follows the momentum of its $1.04 billion investment in its Carlow and Dunboyne, Co Meath in 2023.

Amid this news, also pending in the background is the BIOSECURE Act, a bipartisan bill that would prevent taxpayer dollars from being allocated to fund biotech companies that are controlled or operated by foreign adversaries (such as China).2,3 HR 8333 passed in September 2024 and is currently awaiting approval in the Senate; WuXi AppTec and WuXi Biologics have reportedly been exploring various divestments since October.4

The Dundalk plant joins MSD’s current network of five large-scale pharma manufacturing, research, and development sites across Ireland, including MSD Ballydine, MSD Brinny, MSD Carlow, MSD Dunboyne, and MSD Biotech, Dublin.

Ireland’s foreign direct investment agency, IDA, noted that the three-story Dundalk site houses drug product manufacturing, drug substance manufacturing, and quality control labs used directly for global vaccine product supply. Across its eight locations in Carlow, Cork, Dublin, Louth, Meath, and Tipperary alone, MSD Ireland plans to add 1,000 jobs over the course of a few years.

“MSD’s manufacturing footprint in Ireland is unparalleled, and I am proud to oversee its continuous expansion, always looking to advance the future of health through innovation and acceleration in the service of people and patients around the world,” said Sanat Chattopadhyay, executive vice president and president of MSD’s manufacturing division. “The acquisition of this WuXi Vaccines site in Dundalk will give us the opportunity to do just that: deliver for people and patients faster, looking at the health challenges of today and tomorrow.”

The MSD growth is continuing to spark excitement among company employees.

“Our company’s continued ambition to expand MSD’s Irish footprint is a testament to the unique ecosystem around us, and in particular speaks to the passion, commitment and talent of our existing 3,000-strong workforce and what they have been able to accomplish for our global network—from MSD Ireland to the world,” noted Samantha Humphreys, managing director of MSD Ireland Human Health. “I am very proud to be part of this exciting new chapter as we continue to expand, adding new capabilities and challenging ourselves to look at the health requirements of the future.”

References

1. MSD Ireland announces acquisition of WuXi Vaccines’ Dundalk site. IDA Ireland. January 6, 2025. Accessed January 7, 2025. https://www.idaireland.com/latest-news/press-release/msd-ireland-announces-acquisition-of-wuxi-vaccines%E2%80%99-dundalk-site

2. H.R.8333 — BIOSECURE Act. Congress.gov. May 10, 2024. Accessed January 7, 2025. https://www.congress.gov/bill/118th-congress/house-bill/8333

3. Saraceno N. US Government Considers Banning Dealings with WuXi AppTec, Affiliates. Pharmaceutical Commerce. March 8, 2024. Accessed January 7, 2025. https://www.idaireland.com/latest-news/press-release/msd-ireland-announces-acquisition-of-wuxi-vaccines%E2%80%99-dundalk-site

4. China's WuXi explores sale of pharma operations as US restrictions loom, FT reports. Reuters. October 3, 2024. Accessed January 7, 2025. https://www.reuters.com/markets/deals/chinas-wuxi-explores-sale-pharma-units-us-restrictions-loom-ft-reports-2024-10-03/