WuXi Biologics (02269) plummeted 5.66% during Tuesday's intraday trading session. The steep decline came after the company announced it would sell its vaccine facility in Ireland to U.S. drugmaker Merck & Co for about $500 million.
The divestment move appears to be a preemptive measure ahead of potential U.S. legislation that could restrict business for Chinese biotech companies. The U.S. House of Representatives passed the Biosecure Act in September, which would ban federal contracts with targeted firms and their business partners.
With growing concerns over potential U.S. sanctions, investors have become wary of WuXi Biologics' future prospects, leading to the sharp sell-off in the company's shares on Tuesday.
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