1.2 Billion Yuan! Japanese Machinery Company Acquires German Plant from WuXi Biologics

On May 14, Japanese medical device manufacturer Terumo announced that it has acquired its Leverkusen plant in Germany from WuXi Biologics for 150 million euros (approximately 1.2 billion yuan).

The plant, originally a Bayer asset, was purchased by WuXi Biologics in 2020 for 77 million euros. It has a capacity of 10 million bottles and is used for advanced aseptic filling lines and lyophilization equipment.

The acquisition is expected to be completed by March 2026, with all of the approximately 150 existing employees transferring to Terumo's umbrella. It is anticipated that production will commence by 2030, with the facility primarily used for manufacturing prefilled syringes in the future.

After the acquisition is completed, the factory will become Tyremao's first overseas CDMO base.

Why is WuXi Biologics selling?

For WuXi Biologics, this is part of its strategic adjustment, and it will focus on capacity construction in core regions in the future.

According to the public information from WuXi Biologics, "the divestiture of the Leverkusen plant will help improve the company's operational agility and expand diversified solutions. The company will further focus on the construction of large-scale biologics capacity at its Singapore base in the future."

In 2024, Wuxi Biologics has started construction of a CDMO facility in the Tuas Biomedical Park in Singapore, covering an area of 13.5 hectares. It is expected to add 120,000 liters of production capacity and hire 1,500 employees.

Additionally, the company is constructing a $300 million manufacturing facility in Worcester, Massachusetts, expected to be completed in 2027.

Why does Taiermao want to buy?

This transaction holds significant importance for Terumo, marking a crucial step in strengthening its global presence and addressing the growing demand in the biopharmaceutical sector.

In recent years, Terumo has been hoping to establish a CDMO production base outside of Japan to expand its production capacity, enhance its global service capabilities, and accelerate the global expansion of its CDMO business.

Regarding the Wuxi Biologics factory in Germany, Hikaru Samejima, CEO of Terumo, stated that acquiring the facility is a critical step in enhancing the competitiveness of their CDMO business. By integrating the high-quality, stable production operations and talent at the Leverkusen facility, it will significantly boost global responsiveness.

Terumo also stated that in the future, it will fully leverage its existing advantages to develop and produce prefilled syringes and vial formulations, accelerate supply chain optimization, and meet the strong demand for CDMO services in the European and American markets.