The House of Representatives successfully advanced the BIOSECURE Act, marking a significant stride in restricting Chinese biotech companies within the U.S.
At a Glance
- The BIOSECURE Act prevents U.S. companies from collaborating with certain Chinese biotech firms.
- Targets five key Chinese life-science companies: WuXi AppTec, WuXi Biologics, BGI Group, MGI, and Complete Genomics.
- Passed with a resounding vote of 306-81 in the House.
- The bill will move to the Senate for further approval.
- Bill aims to mitigate national security risks and safeguard American health data.
House Advances BIOSECURE Act
The U.S. House of Representatives has advanced the BIOSECURE Act, aiming to impose restrictions on Chinese biotech firms operating within the United States. This legislation is designed to protect American national security and intellectual property, with a particular focus on the biotechnology sector.
The bill prevents U.S. companies from forming contracts with certain Chinese biotech service providers and targets five Chinese companies: WuXi AppTec, WuXi Biologics, BGI Group, MGI, and Complete Genomics. The bill, which passed with significant bipartisan support but faced overwhelming opposition from Democrats, plans to establish an inter-agency process for identifying additional firms to be restricted.
The legislative move aligns with broader efforts to reduce U.S. reliance on Chinese manufacturing and avoid risks to American health data.
Support and Opposition
Supporters argue the bill is essential for safeguarding the U.S. pharmaceutical supply chain and protecting sensitive health data. The bill received bipartisan backing, passing the House floor with a decisive 306-81 vote. One of the key proponents stated, “The BIOSECURE Act ensures that our national security is not compromised by foreign adversaries.”
“WuXi AppTec is disappointed in the House’s vote on the proposed BIOSECURE Act, which pre-emptively and unjustifiably designates our company without due process,” WuXi AppTec said in an emailed statement. “We and many across the pharmaceutical and life sciences industry are deeply concerned about the legislation’s impact on U.S. leadership in biotechnology innovation, drug development, and patient care, as well as the implications for the costs of care and life-saving and other vital medications,” the research giant added.
Those opposing the bill, particularly Democrats like Rep. Jim McGovern, voiced concerns about the bill’s rationale and potential repercussions. McGovern stated, “This weak bill could actually make the problem even worse by introducing inconsistencies in how companies are included in the restriction list.”
The U.S. Biosecure Act has been strongly opposed by Chinese drug companies. WuXi AppTec condemned the bill as "unreasonable," while BGI stated that it's based on "incorrect information and baseless allegations."
The bill, passed by the U.S. House of Representatives on Monday,… pic.twitter.com/wWWliBGu4n
— CGTN BIZ (@CGTNGlobalBiz) September 10, 2024
Senate Decision Pending
The BIOSECURE Act will now move to the Senate, where its fate will be decided. Should the Senate approve the bill, U.S. and European drugmakers will be required to sever ties with the named Chinese contractors by 2032 to maintain their positions on Medicare and Medicaid. Critics argue that the new rules could lead to drug shortages and increased costs for vital medications.
“Complete Genomics, for its part, said it was “deeply disappointed but not entirely surprised” that geopolitics, rather than facts, drove the House passage of the BIOSECURE Act. In turn, the Senate will have to spend the final months of the session working to fix “this broken and flawed bill,” the genomics company continued.”
The bill includes provisions that prohibit federal contracts with the targeted firms and those that do business with them, further perpetuating apprehension among industry stakeholders. As the Senate deliberates on the law, the biotech sector watches closely, evaluating the potential impacts on innovation and collaboration.
