Biotechnology Innovation Organization (BIO) has announced “unwavering support” for U.S. national security, and will be supporting the proposed legislation that restricts business with Wuxi AppTec and WuXi Biologics.
In a statement the Washington-based global trade association representing biotechnology companies has announced that it will support the BIOSECURE Act and remove the Chinese companies from its membership roster.
“Our adversaries abroad have stated that they intend to become the biotechnology center of excellence in the world,” said BIO’s new CEO, John Crowley.
“America and our allies cannot let this happen. Securing and advancing our preeminence in biomanufacturing will be one key component of a multi-prong approach to secure and advance this strategic imperative in biotechnology.”
This is a change in position from last month, when then BIO’s previous CEO Rachel King wrote a letter urging the committee to reconsider the proposed legislation.
Disruption to drug development
WuXi’s contract development and manufacturing services are currently used by pharmaceutical companies and and biotech startups across the United States. If these companies are forced to switch suppliers, the cost of transfer technologies to alternatives will be high.
Endpoints has published an insightful summary of companies thought likely to be impacted:
Source: Endpoints
Many biotechs now face difficult decisions about how they will move their drug development forward.
Harvey J. Berger, Chairman & CEO of Kojin Therapeutics tweeted that “targeting of WuXi by Congress is not in the best interests of biotech, investors or patients Wuxi AppTec and WuXi Biologics provide critical services to US companies – large and small. Kojin is one of them.”
WuXi AppTec has said the bill “relies on misleading allegations and inaccurate assertions.”
As a result of this disruption, WuXi Biologics is “the most volatile stock in Asia” according to data compiled by Bloomberg,
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