China’s WuXi is set to sell its advanced medical unit amid US sanctions, according to Reuters

(Reuters) – China’s Wuxi Pharmacy said on Tuesday that its distributors have signed a deal with U.S.-based private equity firm Altaris LLC to sell its cell and gene therapy manufacturing unit WuXi Advanced Therapies for an undisclosed sum.

The company, along with other Chinese companies, were at the center of new US laws intended to limit their business in the United States due to national security concerns.

The US House of Representatives passed legislation in September that would bar federal contracts from targeted firms and those who do business with them.

The bills are designed to protect Americans’ personal health and genetic information from foreign adversaries and aim to help American pharmaceutical and biotech companies reduce their reliance on China for everything from drug ingredient manufacturing to early research.

WuXi said it will sell its U.K.-based WuXi ATU business, Oxford Genetics, to Altaris LLC.

Altaris declined to comment beyond the details provided. WuXi AppTec did not respond to a Reuters request for comment.