Asia Tech Wire (Mar 14) -- The Biotechnology Innovation Organization (BIO), a U.S.-based biotechnology organization, supports the U.S. Biosecure Act and has dropped Chinese pharmaceutical company WuXi AppTec Co Ltd (2359.HK) from its membership.
BIO said in a press release Wednesday that it has sent a letter to U.S. Rep. Mike Gallagher, chairman of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, stating that it will support the Biosecure Act and will work with U.S. members of Congress to advance the legislation.
The U.S. Senate Homeland Security and Governmental Affairs Committee voted on March 6 to report a revised draft of the Biosecure Act to the Senate, which would restrict U.S. federal agencies from doing business with BGI Genomics Co., Ltd. (00676.SZ), WuXi AppTec and other Chinese biotech companies on national security grounds.
Notably, the latest revision of the draft still pre-defines WuXi AppTec as one of the biotechnology companies of concern.
However, the draft biosecure law has not yet been enacted, and the subsequent legislative process requires the U.S. House of Representatives and Senate to vote on their respective versions of the bill after review by the relevant committees to produce a final version.
BIO said it's taking steps to remove WuXi AppTec from its membership and will terminate its cooperation with the firm.
The biotech organization's position on the Biosecure Act, in fact, took a big shift when new president and CEO John Crowley took office in early March.
Crowley's predecessor, Rachel King, had urged the U.S. House Select Committee to reconsider the bill last month and challenged the bill's explicit naming of companies.
WuXi AppTec is currently the only Chinese company that the draft biosecure law has blacklisted from doing business.