The House Oversight Committee will mark up a far-reaching bill on May 15 that, if passed, could force many US biopharma companies to cut ties with WuXi and several other Chinese life sciences contractors, a congressional aide confirmed to Endpoints News.
The markup signals building, bipartisan momentum on the closely-watched bill that could have wide-ranging implications for dozens of companies. A similar bill passed out of the Homeland Security and Governmental Affairs Committee earlier this spring.
Specifically, the legislation could force US companies to cut ties with WuXi and its subsidiaries as well as other China-based companies like BGI, MGI and Complete Genomics. But some companies with existing ties with the Chinese companies may be allowed to keep those relationships under the bill if it passes. Even still, many companies are disclosing that they’re assessing their supply chain options and planning for a potential disruption.
The bill, known as the Biosecure Act, originated in the House Select Committee on the Chinese Communist Party and follows concerns that China-based companies could be sharing sensitive US genomics and other patient data with the Chinese government.
The legislation could affect many large and small pharma companies as well as academic institutions that work with the companies named in the bill, sometimes exclusively. In response, a host of pharma companies and biotechs have begun lobbying on the legislation, even as many have remained mum on their exact stance on the bill.
Contract manufacturers and research companies outside of China may gain new business if the bill passes. For instance, given WuXi’s biologics manufacturing expertise, GlobalData analyst Jithendra Kancharla said on Friday that Samsung Biologics, “with its vast experience and huge production facilities dedicated solely to the production of biologics, can seize this opportunity to fill the gap and propel forward as a major CDMO in the biopharmaceutical industry.”