The future of the BIOSECURE Act, aimed at preventing Chinese biotechs from accessing US funding and collaborating with US pharma companies, is uncertain after senators left it out of the latest defence budget bill. The omission makes it likely that the act will miss this year’s passage before Congress recesses.
Five Chinese companies, including WuXi AppTec and BGI Group, are currently mentioned in the bill. WuXi AppTec shares rose 10.5% after news of the bill’s exclusion from the defence budget bill. The company’s market cap is $185.4bn.
While the BIOSECURE Act was not included in the defence budget bill, a related plan to secure US biotechnology supply chains has been included as part of a broader intelligence strategy.
US President-elect Donald Trump’s rhetoric on China suggests that the bill will not be completely absent from future policy discussions. However, his administration did not prioritize the act before the election, focusing instead on changes at federal agencies and reproductive health control.
The BIOSECURE Act has undergone several iterations since its introduction, passing the US House of Representatives in September with bipartisan support. Concerns have been raised about the bill’s impact on medicine research and manufacturing, citing reliance on Chinese companies in supply chains.
Source: https://finance.yahoo.com/news/reprieve-chinese-biotechs-biosecure-act-123708162.html