Dive Brief: The Biotechnology Innovation Organization on Wednesday backed legislation aiming to limit the industry’s association with Chinese life sciences companies that have alleged ties to the Chinese government, including the widely-used contract research and manufacturing company WuXi-AppTec. BIO is also “taking steps to separate from WuXi-AppTec,” a member of the organization, said in a statement. The legislation, which has already cleared a Senate committee, is part of a strategy for “securing and advancing our preeminence in biomanufacturing,” said BIO CEO John Crowley. The group also supported measures to beef up U.S.-based manufacturing, which it called “a strategic imperative that is essential for long-term U.S. leadership and security.” BIO’s endorsement of the bill, known as the Biosecure Act, came after pressure from U.S. lawmakers. The organization recently received a request from Rep. Mike Gallagher, R-Wis., for the Justice Department to review the group’s support for WuXi “in the context of the Foreign Agent Registration Act.” Dive Insight: China’s biotechnology industry has become a major partner to U.S., U.K. and Europe-based drugmakers, providing help with research, managing clinical trials, contract manufacturing services and in-country salesforces. In recent years, a number of large companies have sought a greater presence in China, among them AstraZeneca, Amgen, Pfizer, and Eli Lilly. Yet the growing political momentum to limit ties to companies believed to be affiliated with the Chinese government may force drugmakers to review their strategies. The legislation specifically calls out WuXi, BGI Genomics and its U.S.-based subsidiary Complete Genomics, but more broadly targets any company with ties to the government of a “foreign adversary.” The legislation doesn’t directly prohibit drugmakers from cutting deals with Chinese companies. But it does bar the federal government from signing contracts with drugmakers that do. “If the bill is enacted, one would expect it would have a sizable impact on the industry, as it would require companies that have (or would seek to obtain) contracts with the U.S. government to make significant and often complex changes to their operations and would increase demand for substitute equipment and services,” according to an alert from the law firm Ropes & Gray. In a statement, BIO said it decided to support the bill for competitive and national security reasons. “Our adversaries abroad have stated that they intend to become the biotechnology center of excellence in the world,” Crowley’s statement said. “America and our allies cannot let this happen. Securing and advancing our preeminence in biomanufacturing will be one key component of a multi-prong approach to secure and advance this strategic imperative in biotechnology.”
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