RE:RE:RE:RE:RE:USA Inflation Reduction Act (IRA) 2022 Re: Biotech and China August 19, 2024 - The U.S. BIOSECURE Act proposes to ban five P.R.C.-based biotech companies from operating in the United States – and potentially to ban other “biotechnology companies of concern” – amid a backdrop of concerns that the Chinese government might obtain U.S. IP and exploit Americans’ genomic data. The prospect of this legislation being passed into law is already leading to meaningful shifts in market behavior. We have seen major strategy reconsiderations by both U.S. and P.R.C.-based biotechs in reaction to the proposed legislation, and some life sciences companies are already including in their contracts with PRC-based biotechs contingency language which hedges against the prospect of the BIOSECURE Act.
Particularly in this U.S. Presidential election year, there has been a bipartisan consensus in the U.S. Congress about the need to be “tough on China,” and a concern about the increasing reliance by U.S. biotechs on P.R.C.-based biotechs for R&D and manufacturing. However, the BIOSECURE Act is still only a proposal. Supporters of the BIOSECURE Act have tried to pass it before and failed, and they are still modifying the text to find a way to overcome the bicameral hurdle (the House and Senate need to pass identical versions) this year. As a result, the BIOSECURE Act is likely to remain a live issue until Congress adjourns at the end of the year, regardless of the winner of November’s U.S. elections.
Current intelligence indicates the sponsors of the BIOSECURE Act will seek to advance the draft legislation as a stand-alone proposal. A stand-alone bill would be likely to achieve strong support in the U.S. House of Representatives, but would be expected to face greater challenges in the U.S. Senate. However, if the BIOSECURE Act is going to become law this year, the legislation is most likely to be attached to a broader legislative package, such as the U.S. National Defense Authorization Act (NDAA), an annual bill to fund the U.S. military.
https://goodlifesci.sidley.com/2024/08/19/how-when-and-if-the-u-s-biosecure-act-is-likely-to-become-law/