WuXi Biologics Statement

Rhea-AI Summary

WuXi Biologics announced that two subsidiaries in Shanghai and Wuxi will be added to the U.S. Commerce Department's "Unverified List" on February 8, 2022, due to uncompleted end-use verifications for exported equipment. This follows a delay caused by the COVID-19 pandemic. The company emphasizes that this listing does not impact its business or services, as the equipment is not needed after facility construction. WuXi Biologics is compliant with all U.S. export regulations and welcomes inspections to expedite removal from the list.

Positive

• WuXi Biologics has maintained compliance with U.S. export controls.
• No disruption to business operations or services to global partners.

Negative

• Subsidiaries added to the U.S. Commerce Department's "Unverified List."

SHANGHAI, Feb. 7, 2022 /PRNewswire/ -- We have been made aware of a recent U.S. Commerce Department announcement that two WuXi Biologics (Cayman) subsidiaries in Shanghai and Wuxi will be added to the department's "Unverified List" (UVL) on February 8, 2022. We understand that the reason for this action is because U.S. government agencies have not been able to undertake required end-use verifications in order for certain equipment to be exported from U.S. suppliers. The "Unverified List" is not the U.S. "Entity List" or "Black List" that are more well known.

WuXi Biologics has been importing certain hardware controllers for bioreactors and certain hollow fiber filters that are subject to U.S. export controls but have received Commerce Department approval for the last 10 years. We are in compliance with all U.S. export control regulations. We do not re-export or resell these items to any other entity. The Commerce Department has a routine process to verify the proper use (ie self-use, no resale) of these on site. This process has not be completed in the last two years due to the COVID-19 pandemic.

This has no impact on our business or ongoing services to global partners. There is very minimal impact to our imports as no such equipment is required after facility construction in Shanghai and Wuxi. We welcome inspection at any time for the clearance and removal from such list.  We are also pursuing interim measures to remove these subsidiaries from the list prior to inspection.

About WuXi Biologics

WuXi Biologics (stock code: 2269.HK), a Hong Kong-listed company, is a leading global biologics Contract Research, Development and Manufacturing Organization (CRDMO) offering end-to-end solutions that empower partners to discover, develop and manufacture biologics from concept to commercial manufacturing for the benefit of patients worldwide. For more information about WuXi Biologics, please visit: www.wuxibiologics.com.   

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PR@wuxibiologics.com 

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IR@wuxibiologics.com

View original content:https://www.prnewswire.com/news-releases/wuxi-biologics-statement-301477126.html

SOURCE WuXi Biologics

FAQ

What does it mean for WuXi Biologics to be on the Unverified List?

Being on the Unverified List indicates that the U.S. government has not completed required verifications for certain exports.

Will the Unverified List status affect WuXi Biologics' business?

WuXi Biologics states that this status has no impact on its business or services to global partners.

When will WuXi Biologics be removed from the Unverified List?

WuXi Biologics is pursuing interim measures for removal and welcomes inspections to expedite the process.

What is the reason for WuXi Biologics' listing on the Unverified List?

The listing results from the U.S. government's inability to complete end-use verification due to the COVID-19 pandemic.

What equipment is affected by the Unverified List status for WuXi Biologics?

The status affects certain hardware controllers for bioreactors and hollow fiber filters.