WuXi Biologics’ move to sell the facility could strengthen the company’s cash flow and margins as it navigates global uncertainties.

China's WuXi Biologics said on Monday it will sell its vaccine facility in Ireland to U.S. drugmaker Merck & Co for about $500 million, ahead of potential U.S. legislation that would restrict business for Chinese biotech companies.

In Ireland, WuXi Biologics has sold a new vaccines plant to Merck & Co. for €500 million ($521 million). The New Jersey company was a natural buyer of the facility as it was the lone client WuXi Biologics served at the site in Dundalk, executing a 20-year contract to produce vaccines worth $150 million annually.

The acquisition from Wuxi Biologics, the embattled CDMO named in the BIOSECURE Act, marks another expansion of Merck’s manufacturing operations in Ireland.

WuXi Biologics Cayman Inc. will sell a vaccine facility in Ireland to Merck & Co. for about $500 million as the Chinese company seeks to enhance its margins while continuing to navigate geopolitical tensions.

WuXi Biologics (OTCPK:WXIBF) is reportedly selling its vaccine facility in Ireland to Merck (NYSE:MRK) as part of a previously announced plan to divest some of its assets. The China-based contract research,