- A bipartisan group of U.S. lawmakers urges sanctions against Chinese biotech firms WuXi AppTec and WuXi Biologics contract services due to their alleged links to China’s Communist Party and military – claims denied by the companies.
- Shares of both companies slump further with WuXi Biologics now “the most volatile stock in Asia” according to Bloomberg
A bipartisan group of U.S. lawmakers has called for sanctions against Chinese biotech firm WuXi AppTec and its contract services affiliate WuXi Biologics. In a letter dated February 12, the lawmakers urged top Biden administration officials to review the global pharmaceutical giant’s links to China’s Communist Party and military. Their concern centre around potential threats to U.S. national security.
The letter, signed by Representatives Mike Gallagher (Republican chair) and Raja Krishnamoorthi (Democratic ranking member) of the House select committee on China, along with Senators Gary Peters and Bill Hagerty, point to the firm’s clear military ties and its support for China’s policies in Xinjiang, a region where the U.S. has accused Beijing of committing genocide against muslims.
Congress has already introduced legislation aimed at restricting federally-funded medical providers from sharing genetic information about Americans with China’s BGI Group, WuXi AppTec, and other biotech firms.
WuXi AppTec, however, maintains that it is not a national security risk to any country. The company’s statement on its website home page expresses concern over what it calls a “misguided U.S. legislative initiative” targeting them without a fair and transparent review of the facts. It has previously issues statement that
Wuxi Biologics is one of the world’s biggest biologic contract research, development and manufacturing organizations (CRDMO). The company was spun off from WuXi AppTec several years ago and now offers a wide range of services to pharma clients in the United States, Europe and Asia.
In 2023 the company completed its manufacturing facility in Dundalk, Ireland (pictured) built with an estimated investment of €325m ($394m) and employing 7,000 personnel.
WuXi shares slump
Shares of both WuXi AppTec Co. and WuXi Biologics have plunged more than 50% each since the start of this year.
Latest share price, WuXi Biologics
In January the company denied its Chief Executive Officer has worked for any military-affiliated institution.
The wild swings have made WuXi Biologics “the most volatile stock in Asia” according to data compiled by Bloomberg.
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