RE:RE:RE:RE:USA Inflation Reduction Act (IRA) 2022 Re: Biotech and China
April 10, 2024 - The Biosecure Act would prohibit US companies receiving federal grant money from working with four Chinese biotech companies, including WuXi AppTec and its sister company WuXi Biologics, which produce active pharmaceutical ingredients (API) for hundreds of US and European drugmakers.
Biotechnology has become one of Washington’s national security priorities, as the Biden administration works to onshore manufacturing capacity as well as slow China’s access to sophisticated technology, including semiconductors. The bill labels Shanghai-based WuXi AppTec “a biotechnology company of concern”, which is described as any entity posing a risk to the US by engaging in joint research with a foreign adversary’s military, providing data obtained through equipment, and obtaining human data through equipment and services without informed consent.
While the bill was not expected to be passed until after the presidential election in November, the uncertainty caused by mounting US-China tensions was forcing companies to draft contingency plans, said experts.
In total, 23 US biotechs have flagged their reliance on WuXi production facilities in annual reports since the start of March, according to data from AlphaSense. Five of the companies, including ArriVent Biopharma and Dianthus Therapeutics, informed investors that they were exploring alternative manufacturing options to WuXi.
https://www.ft.com/content/bfe48705-5610-4b6d-bbe4-0844f50483b2