(Yicai) Dec. 26 -- WuXi AppTec will sell its cell and gene therapy units to US private equity firm Altaris in a retreat from non-core businesses for the Chinese biotech company named in the proposed US Biosecure Act.

WuXi AppTec will sell Philadelphia-based WuXi Advanced Therapies and Oxford Genetics to Altaris, it said on Dec. 24. The deals will likely complete in the first half of next year subject to regulatory approval, the company said, without providing any financial details.

The Biosecure Act, which would prohibit US federal agencies from working with Chinese biotech companies such as WuXi AppTec due to concerns about data security and potential misuse of genetic information, has yet to pass the Senate and become law.

While its immediate passage is unlikely, analysts warn that Chinese contract pharmaceutical firms face ongoing challenges and the bill could resurface under the incoming Trump administration.

The sale of the two subsidiaries will allow WuXi AppTec to focus on its core businesses in chemistry, biology, and testing, while ensuring continuity of service for clients requiring cell therapy solutions, according to WuXi ATU Chief Executive Edward Hu.

WuXi ATU and Oxford Genetics brought in combined revenue of about CNY980 million (USD137.6 million) in the first 11 months of this year, equal to 2.4 percent of WuXi AppTec's total income for the last fiscal year. But revenue at WuXi ATU sank 19.4 percent to CNY575 million in the six months ended June 30, partly due to project delays and cancellations.

New York-based Altaris, which manages around USD10 billion in assets and has invested in over 50 healthcare companies since 2003, will maintain the existing infrastructure and workforce of the two units.

J.P. Morgan served as financial advisor to Shanghai-based WuXi AppTec in this deal, while Wilson Sonsini Goodrich & Rosati acted as legal advisor. Kirkland & Ellis LLP represented Altaris.

Editor: Martin Kadiev