BIOSECURE Act Excluded from US Defense Bill, Offering Reprieve to Chinese Biotechs

Exclusion from Defense Bill:
The BIOSECURE Act, aimed at preventing Chinese biotechs and manufacturers from accessing US funding and collaborating with US pharma companies, was left out of the pivotal FY2025 National Defense Authorisation Act1.

Impact on Chinese Biotechs:
The exclusion provides a reprieve for Chinese biotechs, including WuXi AppTec and WuXi Biologics, which are currently mentioned in the act. WuXi AppTec's shares rose 10.5% following the news1.

Industry Concerns:
The biopharmaceutical industry has expressed concerns about the potential impacts of the BIOSECURE Act, including increased costs, delays in clinical trials, and regulatory submissions13.

Supply Chain Reliance:
The industry heavily relies on Chinese contract biomanufacturing organizations (CDMOs), with a survey showing that 79% of US biotech companies have contracts with or purchase products from China-owned or -based CDMOs3.

Future Uncertainty:
While the BIOSECURE Act did not make it into the current defense bill, its future remains uncertain, especially with the incoming administration's stance on China1.

Alternative Plans:
The National Defense Authorisation Act for Fiscal Year 2025 includes plans to secure biotechnology supply chains critical to US national security, indicating ongoing efforts to address these concerns1.

Sources:

1. https://www.pharmaceutical-technology.com/news/reprieve-for-chinese-biotechs-as-biosecure-act-left-out-of-key-bill/

3. https://www.biospace.com/policy/biosecure-act-could-signal-a-seismic-shift-for-biopharma-in-us-and-china