A US Congress bill aimed at prohibiting US-funded entities from engaging with various China-based contract development and manufacturing organizations (CDMOs) has reportedly been sidelined by the Senate this week. The bipartisan legislation, which previously triggered a significant decline in stock prices for companies like WuXi AppTec (HKG: 2359, SHA: 603259), would also restrict the US government from contracting with firms utilizing equipment or services from these CDMOs.
The Senate has opted not to advance the bill out of the House Select Committee that drafted it, with plans to revisit it at a later, unspecified date, according to a majority aide from the Senate Committee on Homeland Security and Governmental Affairs. A congressional aide indicated that the bill is expected to be delayed for “at least a few weeks.”
The proposed legislation seeks to restrict federally funded medical providers from collaborating with foreign “biotech companies of concern,” citing links to China’s military. Notably, the bill references the Beijing Genomics Institute (BGI) for allegedly collecting genetic data from Americans for research purposes associated with the Chinese military. Other companies mentioned include BGI subsidiaries MGI and Complete Genomics, as well as the CRDMO WuXi AppTec and its subsidiaries, including WuXi Bio (HKG: 2269).- Flcube.com
