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U.S. House passes BIOSECURE Act, targeting Chinese biotech
The U.S. House passed the BIOSECURE Act, which targets Chinese biotech firms to safeguard national security and impact the drug supply chain.
The United States House of Representatives has passed the bipartisan BIOSECURE Act, which targets Chinese biotech companies, such as WuXi AppTec and WuXi Biologics, as national security risks. The bill restricts American companies from collaborating with these firms, which could significantly impact the drug supply chain.
Bipartisan Support
The bill was passed by 306-81, receiving backing from 111 Democrats. Representative James Comer (R-Ky.) emphasized the legislation's importance, stating it aims to "protect U.S. taxpayer dollars from flowing to biotechnology companies that are owned, operated, or controlled by China or other foreign adversaries."
Comer stressed the need to safeguard sensitive healthcare data from the Chinese Communist Party before these companies become further embedded in the U.S. economy.
National security concerns
Rep. Comer highlighted that the legislation is crucial for protecting American interests. Representatives John Moolenaar (R-Mich.) and Raja Krishnamoorthi (D-Ill.) also supported the bill, underscoring its significance for national security and the integrity of U.S. healthcare systems.
Senate prospects
The BIOSECURE Act will now proceed to the Senate, where it is expected to receive strong bipartisan backing. A similar bill previously passed the Senate Committee on Homeland Security and Governmental Affairs with overwhelming support, indicating a favorable outcome.
Key provisions
Introduced in January 2024, the Act prohibits U.S. biopharma companies from engaging with specific Chinese contractors. Currently, five companies, including WuXi AppTec and WuXi Biologics, are blacklisted. An amendment allows existing contracts to continue until January 1, 2032, providing some leeway for ongoing operations.
Industry impact
Analysts warn that the Act could disrupt the U.S. drug supply and hinder clinical trials, adding pressure to an already strained supply chain. In a BioSpace opinion piece, Jaxon Tan and Ivy Yang argued that these restrictions could have significant consequences, potentially crippling industry progress and innovation.
Domestic manufacturing challenges
The Act also exposes weaknesses in U.S. manufacturing capabilities. Fernando Muzzio, a professor at Rutgers University, noted that the U.S. has overly relied on foreign manufacturing giants, particularly in China and India, neglecting the development of domestic capacity. This reliance has underscored the need to strengthen homegrown manufacturing infrastructures.
Preparing for change
As the BIOSECURE Act progresses, healthcare technology companies must prepare for potential operational shifts and supply chain adjustments. Firms might need to explore alternative partnerships and invest in domestic resources to mitigate potential disruptions.
While the BIOSECURE Act aims to protect national security, it presents challenges and opportunities for the healthcare industry. Companies must navigate these changes carefully to maintain stability and continue to advance medical innovation.
Alivia Kaylor is a scientist and the senior site editor of Pharma Life Sciences.
