WuXiAppTec buys UK’s Oxgene in all-cash takeover to get into US$2.6 billion global market for cell and gene therapy

WuXiAppTec paid US$135 million cash for Oxgene, turning it into a wholly owned subsidiary of WuXi Advanced Therapies (ATU) for developing, manufacturing and testing biotech services

Oxgene remains independent and will retain its brand name, led by Cawood

Reading Time:2 minutes

An illustration of DNA. Photo: Shutterstock

Published: 12:35pm, 3 Mar 2021Updated: 1:02pm, 3 Mar 2021

WuXi AppTec has completed one of its largest acquisitions, buying control of a UK-based contract research and development team to help the Shanghai pharmaceutical company get into the US$2.6 billion global market for cell and gene therapy.

WuXiAppTec paid US$135 million cash for Oxgene, based in the township of Oxford, turning it into a wholly owned subsidiary of WuXi Advanced Therapies (ATU) for developing, manufacturing and testing biotech services, according to an announcement.

The takeover is a “perfect match” between the two companies because WuXi ATU needs advanced technology to plug its gaps in offering end-to-end solutions, while Oxgene requires the manufacturing prowess, said the Chinese company’s chief executive David Chang.

“Based on the industrial needs that we are seeing, we will continue to grow as the demand out there is just so high, either internally and organically or externally through M&As or other kinds of in-licensing agreements,” said Chang, who added the firm will pursue an “aggressive” growth approach.

WuXiAppTec’s senior management during the company’s initial public offering press conference in Hong Kong on November 30, 2018. (L-R): Board secretary Chi Yao, chairman and chief executive Dr. Ge Li and chief financial officer Edward Hu. Photo: Edward Wong

Globally, the cell and gene therapy market is poised to see a compound annual growth rate of 33.8 per cent from 2021 to 2027, according to a forecast by the market intelligence firm BIS Research.

One-stop solutions are being sought after by customers in China’s fast-growing biotech industry, which has fuelled consolidation among drug discovery players, Chang said.