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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 U.S. Commerce Department has a routine process to verify the proper use (i.e., self-use, no resale) of these on site. This process has not been 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.