
Illustration: Sarah Grillo/Axios
An updated version of the Biosecure Act would grandfather existing U.S. research arrangements with Chinese biotech companies through the beginning of 2032 while adding a fifth firm to its list of "companies of concern."
Why it matters: The draft, which is due to be marked up by the House Oversight and Accountability Committee on Wednesday, could be seen as more conciliatory to drug manufacturers and biotechs that are heavily reliant on the contract research firms.
What's inside: The measure would effectively lock certain Chinese companies out of the U.S. by prohibiting life sciences companies from contracting with them.
- It wouldn't apply to biotechnology equipment or services produced or provided before Jan. 1, 2032.
- An executive agency could also waive prohibitions for up to a year, in consultation with the White House and Defense Department.
- The language adds WuXi Biologics to the list of targeted companies, joining BGI, MGI, Complete Genomics and WuXi AppTec.
What they're saying: Lead sponsors Reps. Brad Wenstrup and Raja Krishnamoorthi said the bill would ensure American patient data and taxpayer dollars do not fall into the hands of foreign adversaries.
- They noted WuXi AppTec makes over 60% of its revenue from the U.S. market while posing a national security risk.
- They also noted BGI operates over 100 genetic collection laboratories in over 20 countries — infrastructure that the U.S.-China Economic and Security Review Commission declared was providing "genetic data to serve PRC ambitions to dominate biotech."
What we're watching: The legislation could come up for a floor vote later this month and is expected to be folded into the annual defense authorization bill.
- A parallel area of congressional interest is possible Chinese espionage efforts at NIH, per a TD Cowen analyst note, which cited a recent House Oversight letter to NIH director Monica Bertagnolli.
