Endpoints News has reported that WuXi AppTec Co., Ltd, (SHA: 603259) a China-based Contract Development and Manufacturing Organization (CDMO), spent at least USD 360,000 on lobbying efforts in the United States during the second quarter of 2024. This period coincided with lawmakers’ consideration of the Biosecure Act and other legislative matters. According to publicly available federal records on lobbying activity, the actual figure could be higher as the deadline for reporting closes today.
WuXi’s Q2’24 lobbying expenditure was three times the amount spent in the first quarter of 2024. This increase reflects the company’s efforts in June to advocate for the inclusion of the Biosecure Act in the US National Defense Authorization Act (NDAA), which outlines funding priorities for the next year. Although this attempt was not successful, the bipartisan support for the Biosecure Act suggests that it could still be voted on before the year’s end.
Federal records also reveal that other companies, including US rare disease firm Vertex Pharmaceuticals and UK pharmaceutical giant GSK, were engaged in lobbying activities related to the Biosecure Act during Q2’24. Vertex spent USD 980,000 on lobbying during this period, though specifics on their stance or the focus on the Biosecure Act were not disclosed. GSK, on the other hand, spent USD 80,000. In May 2023, an SEC filing from Vertex indicated that the company’s reliance on Chinese CDMOs could be disrupted by the proposed legislation, potentially leading to increased costs.
Currently, two versions of the Biosecure Act are under consideration, with both proposing that companies receiving US federal funding must cease collaboration with a list of Chinese companies, including BGI, MGI, Complete Genomics, WuXi AppTec, and WuXi Bio.- Flcube.com
