US BIOSECURE Act passed by US House of Representatives

The controversial act, which has already impacted several foreign companies operating in the US, was passed by the House of Representatives on September 9, 2024. It is now headed for the US Senate before it can be signed into law by President Joe Biden. 

The US House of Representatives passed the bill with 306 votes to 81, far exceeding the two-thirds majority required. If signed into law, the act will prevent pharmaceutical companies from engaging in business with several Chinese biotechs and manufacturing firms. Supporters of the bill argue that it is a necessary measure to protect American health and genetic information, and safeguard the US pharmaceutical supply chain. 

In the act, several Chinese companies are named, including BGI Genomics, MGI Tech, WuXi AppTec, and WuXi Biologics. The bill also prevents the US government from contracting with or providing grants to the stated Chinese companies. In response to Monday’s decision, the Chinese foreign ministry called the bill ‘discriminatory’. Mao Ning, a ministry spokesperson, stated that “China will continue to firmly safeguard the legitimate rights and interests of its companies.” 

Some of the targeted companies released statements voicing their disappointment with the decision. WuXi AppTec described the vote as “pre-emptively and unjustifiably designat[ing] [the] company without due process.”  

Similarly, BGI Group released a statement saying “We are disappointed that the US legislative process is being used to pick winners and losers.” MGI commented, “As we have stressed repeatedly, MGI and Complete Genomics as equipment vendors, do not have access to, collect, or maintain the patient genetic data. Our customers retain full control over any data they generate.” The company accused the House of using “geopolitics instead of facts” for driving their decision.  

“We and many across the pharmaceutical and life sciences industry are deeply concerned about the legislation’s impact on US leadership in biotechnology innovation, drug development, and patient care,” stated a spokesperson for Complete Genomics.  

Though the BIOSECURE Act must still pass through the US Senate before it sees the Oval Office, Chinese companies are already feeling the impact. WuXi AppTec’s Hong Kong-listed shares dipped by 11% on Tuesday, September 10, while WuXi Biologics’ shares slumped by 9%. 

Source: 

US bill to restrict business with China’s WuXi AppTec, BGI passes House [Accessed September 10, 2024] https://www.reuters.com/markets/us/us-bill-restrict-business-with-chinas-wuxi-apptec-bgi-passes-house-2024-09-09/