A US bill titled BIOSECURE Act, specifically targeting major Chinese biotech and genomics companies has been advanced to the full Senate floor by the US Senate and Homeland Security and Governance Affairs Committee on Mar 7,2024. Impacted Chinese companies include WuXi Apptec, WuXi Bio, BGI Genomics, MGI and MGI Subsidiary – Complete Genomics. This bill is aimed at preventing pharma companies from accessing US Federal funding and keep US taxpayers dollars out of foreign adversary biotech companies of US national concern.
If this bill is passed by the Senate to become a law, it could impact the manufacture of medicines for the US Market. WuXi AppTec and WuXi Bio manufacture 19 biosimilar and innovator drugs approved in the US while BGI Genomics, Complete Genomics, and MGI provide products and technologies that serve the genetic sequencing, genotyping and gene expression, and proteomics markets.
The proposed legislation is a significant hurdle for the biotech manufacturing arena in China as it prohibit federal loans and grants to any entity that uses biotechnology equipment or services from one of these entities in performance of the government contract. As per the Convention on Pharmaceutical Ingredients’ (CPHI) annual industry report released late in Oct2023, India will witness the fastest rates of overall growth in biologicals over the next five years accompanied by the rapid emergence of a bio contract development in the CDMO space. With the lot of noise over the noise of China + 1 in Pharma & Chemicals, the time may be ripe for a leapfrogging of contracts and revenues for leading Indian CDMO players especially in the biologics space. Watch out the for likes for Syngene & other players scaling capacity and research in this space.
Source:
https://www.pharmaceutical-technology.com/analyst-comment/biosecure-act-wuxi-drugs-us-market/ Mar 20 2024
https://www.businesstoday.in/industry/pharma/story/india-to-witness-the-fastest-growth-rate-in-biologicals-in-next-5-years-chpi-403136-2023-10-25
