Chinese firms WuXi Biologics, WuXi AppTec investing up to $4b in Singapore

SINGAPORE - Chinese companies WuXi Biologics and WuXi AppTec will be investing up to $4 billion in total in Singapore to grow their research and development (R&D) and manufacturing capabilities here. 

The commitments are expected to provide a further boost to the Republic’s growing pharmaceutical sector. 

In a statement on Tuesday (July 19), Hong Kong-listed WuXi Biologics said that its 10-year US$1.4 billion ($2 billion) investment plan will see it establish a new Singapore facility, which will add 120,000 litres biomanufacturing capacity to its global network by 2026.

The new site, which expands its R&D and large-scale drug substance and drug product manufacturing capabilities in Singapore, is projected to employ 1,500 research, development and manufacturing staff when completed.

WuXi Biologics provides drug development and production for the likes of pharmaceutical companies. 

News agency Reuters previously reported that the company makes ingredients for AstraZeneca's Covid-19 vaccine.

The contract research, development and manufacturing organisation employs more than 10,000 staff in China, the United States, Ireland, Germany and Singapore.

In a separate statement on Tuesday,  WuXi AppTec said it intends to invest up to $2 billion in an R&D and manufacturing site in Singapore, with the investment expected to be made in stages over the next 10 years. 

WuXi AppTec, which is headquartered  in Shanghai, and operates globally, provides a range of R&D and manufacturing services to the pharma and healthcare industry. 

These include contract drug R&D and manufacturing, as well as clinical research and testing. 

Dr Beh Swan Gin, chairman of the Singapore Economic Development Board, said in a LinkedIn post on Wednesday: “As a leading contract development and manufacturing organisation in the global biopharmaceutical industry, WuXi’s investment will enhance its capabilities and capacity to support its partners in advancing healthcare innovations and helping patients in need.” 

He added: “When completed, the site will also strengthen Singapore’s position as a global pharmaceutical hub and attractiveness to biotech start-ups and innovators.”

In a statement, WuXi AppTec chairman and chief executive Li Ge said: “This investment will further enhance our capacity and capabilities so we can better support our collaborative partners globally and realise our shared vision that every drug can be made, and every disease can be treated.” 

Dr Li is also chairman of WuXi Biologics. 

WuXi Biologics CEO Chris Chen said that the company’s investment will “enhance the sustainable growth and success of the Singapore biotech ecosystem” and provide the global biologics industry with a more robust supply chain.

The new facility will become a critical part of the global network it has established to meet the needs of its clients, WuXi Biologics said in its statement.

It will also reinforce the company’s strategy to ensure that customer projects can be fulfilled at multiple facilities globally to mitigate potential risks.

The combined investment by WuXi is one of the largest commitments seen in Singapore’s biotech sector to date. 

Last year, pharma giant Sanofi Pasteur announced that it would invest €400 million ($570 million) over five years to build a vaccine production centre in Singapore.

In 2020, Thermo Fisher Scientific said it would set up a new US$130 million facility here. 

Correction note: This story has been updated for accuracy.