According to a recent survey conducted by the Biotechnology Innovation Organization (BIO), which represents biotechnology companies in the US, 79% of the 124 respondents have some form of contract or business agreement with manufacturers based in China or owned by Chinese entities. This finding highlights the fact that more than two-thirds of these respondents are small, emerging biotechnology firms with less than 250 employees.
This survey comes at a critical time, as legislative proposals in both the US Senate and House of Representatives seek to limit cooperation between American businesses and Chinese biotech companies, such as BGI and WuXi AppTec, on national security grounds. Earlier this year, BIO expressed its opposition to these proposals, but subsequently softened its stance, stating that it wished to collaborate with lawmakers on the matter. WuXi AppTec, a major contract manufacturer with a significant proportion of its business originating from the US, withdrew from BIO in early 2021.
Of the survey respondents, 74% reported having agreements with Chinese businesses related to pre-clinical and clinical trials. Additionally, 30% stated that they had arrangements with Chinese-affiliated enterprises concerning the manufacture of approved medications. BIO revealed that these respondents estimated it would require anywhere from six to eight years to replace their manufacturing partners, with the most advanced projects requiring the longest transition period.
In light of these findings, BIO warned that US patients would suffer adverse consequences unless there was a systematic and well-thought-out separation from China-based or China-owned biomanufacturing facilities. The organization refused to offer any additional comment. (Deena Beasley and Karen Freifeld reporting for Reuters; edited by Chris Reese.)
Based on the information presented, it is clear that a significant number of smaller biotech firms in the US maintain relationships with Chinese manufacturers and research institutions. With proposed restrictions on collaboration between American and Chinese biotech companies being considered by Congress, it remains to be seen how these plans will affect the sector going forward. As new technologies, such as those related to artificial intelligence, become increasingly important in areas such as healthcare, it may prove challenging for regulatory bodies to stay abreast of the rapid pace of innovation while also implementing measures to safeguard national interests.
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