Economic Watch: U.S. act threatens biotech innovation, cooperation: companies

BEIJING, Sept. 10 (Xinhua) — The U.S. Biosecure Act, approved by the House of Representatives on Tuesday, has drawn harsh criticism from concerned Chinese companies, global pharmaceutical firms and industry insiders.
Targeting the “China threat,” the act curbs business with Chinese firms like WuXi AppTec and BGI Genomics under national security pretexts. Its passage was followed by a sharp drop in the stocks value of these biotech companies and their prompt response through statements.
WuXi AppTec Co., Ltd., a global service provider that offers integrated solutions across the drug development lifecycle, clarified in its statement that it neither operates a human genomics business nor engages in the collection of human genomic data globally.
The company also said in the statement that it has not, does not, and will not pose a security risk to the U.S. or any other countries and strongly objected to any unsubstantiated and preemptive designation without due process.
Following the House’s passage of the Biosecure Act, the value of WuXi AppTec’s shares plummeted by over 10 percent in Hong Kong trading. The company has pledged to track the legislation’s progress and to engage in dialogue with all pertinent stakeholders.
MGI Tech Co., Ltd., a life science and biotech arm of BGI Group, also released a statement on Tuesday. It said the baseless legislation, drafted under the guise of national security, is likely to jeopardize global biosecurity by slowing the sector’s progress, stifling innovation and making it harder for global companies to benefit from and share important medical breakthroughs.
Moreover, reduced market competition could escalate costs within the sector, ultimately harming those whose lives depend on research advancements, according to the statement.
Its parent company also released a statement later saying, “We are disappointed that the U.S. legislative process is being used to pick winners and losers.” ■