RE:USA Inflation Reduction Act (IRA) 2022 Re: Biotech and China September 10, 2024 - After much anticipation and concern, the BIOSECURE Act—which would prevent U.S. companies from working with certain Chinese biotech service providers—has passed a key threshold.
Late Monday, the U.S. House of Representatives voted 306-81 in favor of the bill, which was introduced in January and seeks to halt federal contracts with five named Chinese life-sci companies—WuXi AppTec, WuXi Biologics, BGI Group, MGI and Complete Genomics—over alleged national security concerns.
Still, the most likely route for the bill to become law would involve inserting BIOSECURE into a larger legislative vehicle, such as the annual defense bill or government funding legislation.
The bill had dramatically undermined U.S.-based life science companies’ confidence in working with Chinese firms. U.S. companies were most concerned about working with Chinese CDMOs, followed by contract research organizations and drug development partners.