US Bill Targets Chinese Biotechs: Wuxi AppTec and Wuxi Biologics Face Restrictions
Key Developments in the US Bill Against Chinese Biotechs
The recent passage of the bill in the US House of Representatives is poised to have significant implications for Chinese biotech companies like Wuxi AppTec and Wuxi Biologics. Following this legislative action, Wuxi AppTec experienced a 10% decline in Hong Kong, while its affiliate, Wuxi Biologics, fell by 3.9%.
Legislative Intent and Impact
This bill aims to restrict business operations with targeted Chinese biotech firms, reinforcing a growing sentiment in Washington to limit collaboration with Beijing. It specifically highlights five entities, including Wuxi, emphasizing the urgency to curb reliance on Chinese manufacturing and uphold American health data security.
- The House passed the bill with a 306 to 81 vote.
- Pending approval from the Senate and the President.
- Wuxi firms assert they do not pose a security risk.
Implications for Wuxi AppTec and Wuxi Biologics
As Wuxi AppTec reported a staggering 59% drop in shares this year and Wuxi Biologics fell 63%, the proposed legislation casts a shadow over their future. Both companies acknowledge their significant sales derived from the US, raising concerns about ongoing partnerships.
- Wuxi AppTec: 65% of their sales from the US last year.
- Wuxi Biologics: 58% in the first half of the current year.
Watch for updates as the Senate considers the Biosecure Act and stakeholders evaluate the broader economic ramifications.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.