Illustration: Sarah Grillo/Axios
Prospects for legislation cracking down on Chinese biotech companies took a hit in recent days after the Biosecure Act was left out of the Senate's version of the annual defense policy bill.
Why it matters: The NDAA was seen as one of the likeliest vehicles for the legislation, which would cut off U.S. government funding for select Chinese biotech companies deemed national security concerns.
Between the lines: Lobbyists tracking the Senate manager's package to the NDAA pointed to a desire on the Hill to keep the legislation relatively clean, to make it easier to pass. With so much unfinished business and time running short, turning the defense bill into a grab bag can be a slippery slope.
- In addition, this month's House vote on the Biosecure Act revealed divisions among Democrats that could complicate talks between the chambers if Biosecure were rolled into the NDAA.
- Rep. Jim McGovern had led the opposition in the House, arguing that the measure lacked due process for the companies named.
- There is also the opposition from the companies — BGI, MGI, Complete Genomics, WuXi AppTec and WuXi Biologics — which do considerable business with U.S. life science and drug companies.
- Their presence and jobs in the United States have factored in.
- WuXi Biologics has announced plans for a facility in McGovern's Massachusetts district, though McGovern said that is not the only reason he's digging in.
What they're saying: "Foreign biotech companies controlled by our adversaries pose a serious threat to both American's personal health and safety, as well as U.S. national security," Gary Peters, one of the Senate sponsors of Biosecure, said in a statement to Axios, adding he will "continue working to get this signed into law."
- His office said that he could offer the bill as a floor amendment to the NDAA.
- "In our view, Biosecure may still get included in the final NDAA that becomes law, but the odds are a bit lower after this development," Raymond James analysts wrote after it was left out of the Senate package.
- Another possible vehicle would be a year-end funding package to keep the government running past Dec. 20.
The U.S. biotech industry also at one point opposed the measure, but its trade group, BIO, announced its support several months ago after a leadership change.
- PhRMA has not taken a position for or against the measure.
- "Biopharmaceutical manufacturers are committed to working constructively with Congress to help protect national and economic interests and make sure patients are not unintentionally impacted with potential drug shortages or disruptions to medicine R&D," the group said in a statement.
