MSD expands vaccine manufacturing presence in Ireland

IRELAND – MSD, known as Merck & Co. in the United States and Canada, has strengthened its operations in Ireland by acquiring a vaccine manufacturing facility from the Chinese biotech firm WuXi Biologics.

The deal, valued at approximately €500 million (US $520 million), involves a three-story, 15,520 square-meter facility located in County Louth.

This site includes drug substance production, product manufacturing, and quality control laboratories, contributing to the global supply of vaccine products.

Currently employing around 200 people, the Dundalk facility will add to MSD’s Irish workforce, bringing its total headcount in the country to over 3,000.

This acquisition marks another significant investment by MSD, which has committed more than €3 billion (US $3.09 billion) in Ireland over the past three years.

It follows a €1 billion (US $1.03 billion) investment program at other Irish sites in Carlow and Dunboyne, announced last year.

As part of its ongoing expansion, MSD plans to create 1,000 additional jobs across its eight Irish locations, including 150 at the newly acquired facility.

The transfer of ownership between MSD and WuXi Biologics, who have collaborated at Dundalk since 2019, is expected to conclude by mid-2025.

The deal further enhances Ireland’s reputation as a hub for major pharmaceutical and biotechnology investments.

MSD emphasized that the acquisition diversifies its operations in Ireland, where each of its five manufacturing facilities focuses on distinct areas of the business.

While MSD already operates a vaccine manufacturing site in Carlow, the Dundalk plant is unique within its network as the only facility producing live virus vaccines.

Live virus vaccines use a weakened version of a virus to stimulate a robust, long-lasting immune response.

These vaccines are crucial for protecting against diseases such as smallpox, measles, mumps, rubella, chickenpox, yellow fever, and rotavirus.

MSD highlighted that the addition of the Dundalk facility will bolster its capacity to meet global health challenges through innovation and faster delivery of solutions for patients.

The timing of this acquisition coincides with broader geopolitical considerations, including potential U.S. policies under President-elect Donald Trump that may encourage American companies to prioritize domestic investments.

Reports suggest that new U.S. legislation, such as the proposed BIOSECURE Act, could restrict American companies from working with WuXi and its affiliates on national security grounds after 2032.

A spokesperson for MSD explained that the Dundalk facility aligns with the company’s evolving business needs and strategic objectives. For WuXi Biologics, this divestment is part of a broader review of its European operations.

Irish officials have welcomed MSD’s expansion as a testament to the country’s thriving pharmaceutical ecosystem.

Simon Harris, Ireland’s Taoiseach, described the acquisition as a “tremendous vote of confidence” in Dundalk and County Louth.

Samantha Humphreys, managing director of MSD Ireland Human Health, praised the dedication and talent of the company’s existing workforce, stating that MSD’s continued growth reflects Ireland’s unique environment for innovation and collaboration.

Michael Lohan, CEO of IDA Ireland, highlighted MSD’s nearly 50-year history in Ireland, noting how the company continues to deepen its presence nationwide.

Sanat Chattopadhyay, head of MSD’s manufacturing division, emphasized that the acquisition underscores the company’s commitment to advancing global health through innovative solutions.

This move is part of a broader trend of pharmaceutical investments in Ireland. Recent examples include Eli Lilly’s US $2 billion facility in Limerick for producing its Alzheimer’s drug donanemab and AstraZeneca’s US $360 million active pharmaceutical ingredient (API) plant in Dublin.

MSD’s operations in Ireland now include five major manufacturing and R&D sites across Ballydine, Brinny, Carlow, Dunboyne, and Dublin, along with a commercial hub for human health and an animal health unit in the capital.