Industry reports or major biotech news outlets

U.S. Increases Scrutiny on Chinese Biotech, Targets WuXi AppTec

Apr 16, 2024, 01:16 AM

Western drugmakers are urgently seeking alternative suppliers in response to the U.S. government's increased scrutiny of Chinese biotechnology firms, specifically targeting Shanghai-based WuXi AppTec as a 'biotechnology company of concern.' This action is part of the broader BIOSECURE Act, which has been described by a global lawyer as the 'elephant in the room' for companies considering deals with Chinese biotechs. The heightened scrutiny is influencing out-licensing deals, which are currently a significant opportunity for Chinese biotech firms. Additionally, U.S. lawmakers have expressed national security concerns, aiming to sever connections between major Chinese biotech firms and U.S. pharmaceutical interests, particularly those involved in developing treatments for diseases such as cancer, cystic fibrosis, and HIV.