Oncolytics Biotech Inc T.ONC

RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals

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The BIOSECURE Act, if passed, could have implications for pharmaceutical and biotechnology companies in the late stages of developing novel and innovative biological cancer therapies. Let’s explore how this legislation might impact these companies:

1. Prohibition on Federal Funding and Contracts:

   • The BIOSECURE Act aims to prevent U.S. federal funding (including loans, grants, and contracts) from being used to support biotechnology equipment or services provided by certain entities.
   • Specifically, it targets Chinese biotechnology service providers (such as BGI Genomics, MGI, Complete Genomics, and WuXi AppTec) and other entities controlled by “foreign adversaries” (defined as China, North Korea, Iran, Cuba, and Russia) .
   • Late-stage U.S. biologic companies that rely on federal funding or have procurement contracts with the U.S. government may need to reevaluate their relationships with these covered biotechnology service providers.

2. Impact on Commercial Arrangements:

   • The BIOSECURE Act does not impose penalties on companies directly engaging with the covered entities. However, it prohibits federal agencies from directly procuring services or funding biotechnology equipment from these entities.
   • Companies that contract with any “biotechnology company of concern” (as defined by the Act) could become ineligible for federal contracts, loans, or grants .
   • Late-stage biologic companies may need to assess their existing commercial arrangements and consider restructuring or transitioning away from these entities to maintain eligibility for federal support.

3. Value Enhancement for Registration-Ready Companies:

   • Registration-ready U.S. biologic companies that comply with the BIOSECURE Act’s provisions may gain a competitive advantage.
   • By avoiding partnerships with covered entities, these companies demonstrate alignment with national security interests and regulatory compliance.
   • Investors and stakeholders may perceive such companies as responsible and well-positioned for growth, potentially increasing their overall value.

In summary, the BIOSECURE Act’s passage could prompt late-stage U.S. biologic companies to reassess their partnerships, enhance compliance, and potentially enhance their attractiveness to investors and collaborators.

The BIOSECURE Act and Its Potential Implications | Insights & Resources | Goodwin (goodwinlaw.com)