Going through Congress currently is Biosecure act, which is an act to ban US companies from doing business with Chinese biotech companies due to national security concerns.
However, the issue is that many US pharmaceutical companies depend on their supply from Chinese biotech companies such as Eli Lily's weight loss drug Zepbound and diabetes drug Mounjaro. Among 134 respondents to BIO’s survey, who represent 124 biopharma companies, 79% of individuals said they have at least one contract or product being supported by a Chinese CDMO.
On Friday, the house adjusted the BIOSECURE Act with the new draft laying out a 2032 deadline for the separation mandate. The House Oversight Committee is expected to mark up the bill on May 15. In an unusually swift action, House leadership is considering reserving a floor vote for the BIOSECURE Act this month, Axios reports.
Potentially this is great news, not just because it allows 8 years to divest but to put the vote to the floor so quickly in order to end the uncertainty. Off the top of my head Wuxi Apptec does business with Astrazeneca (AZN), Eli Lilly (LLY), Bristol Myers Squibb (BMY), Pfizer Inc. (PFE). Wuxi Apptec (WUXAY), and Wuxi Biologics (WXXWY) have lost half their share price since the announcement of Biosecure act rose 6% and 7% respectively on Friday.
Final thing to mention is that there is a chance this act may not pass even though it has bipartisan support. After Bidens 'win' on tariffs on EVs and solar panels, the Republican party may not want to give another win to Biden just before the election but to push it to after the election.
