July 15, 2024
he BIOSECURE Act prohibits US pharmaceutical companies from doing business with China-based biomanufacturers, especially WuXi AppTec, and WuXi Biologics. The legislation is designed to prevent the contract development and manufacturing organizations (CDMOs) from passing on information about drugs under development by US companies and also from forwarding genetic information about US citizens who participated in clinical trials.
Speaker Johnson said last week he would include the bill along with other laws aimed at protecting US multinational companies from China’s exploitation. Johnson also plans to stop US investment in China.
Last month, there was a chance the Biosecure Act would be included in the large US Defense bill, but it was left out of the bill.
At a speech at the Hudson Institute on July 8, Speaker Johnson said “we will vote” on the BIOSECURE Act, which intends to halt federal contracts with Chinese biotech companies “that are beholden to adversaries and endanger Americans’ healthcare data.” US intelligence agencies warned that China required the firms in question to disclose secrets from its clients, which it alleged were being shared with Chinese companies.
When the BIOSECURE Act was first announced earlier this year, members of the House of Representatives proposed ending the relationships quickly between WuXi AppTec and other service firms with US biopharma companies. US industry group BIO conducted a quick survey in May about how much damage the near-immediate breakup would cause. Industry representatives suggested it would take up to six years to replace the relationships they have with China CDMOs.
US Congressmen quickly rewrote the bill to take effect over the next six years after it realized an immediate bill was too disruptive and would end up hurting US companies. The legislation also bans companies from entering into new agreements or extending existing contracts.
As it stands currently, the BIOSECURE Bill names WuXi AppTec, WuXi Biologics, Complete Genomics, Beijing Genomics Institute and MGI, which were called “companies of concern.”
Although the BIOSECURE Bill will probably be approved by the House of Representatives, it will face a more skeptical group of legislators in the Senate and could also be vetoed by the current President.
A version of this article was first published on ChinaBioToday on July 9 2024.
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