The U.S. biosafety draft has caused a stir. WuXi has successively issued clarifications
Recently, a U.S. Senate aide and three other sources said that a trigger A bill to sell off shares of some Chinese biotech companies was postponed in the Senate this week. According to reports, the bill aims to prohibit U.S. federal agencies from entering into contracts with China’s BGI, WuXi AppTec and their subsidiaries, and other biotechnology companies of concern. It also wants to ban the government from contracting with businesses that use the companies’ equipment or services.
In response to the news, WuXi’s subsidiaries, WuXi AppTec and WuXi Biologics, have issued further clarification announcements. WuXi AppTec announced that the company does not have a human genomics business, and its existing businesses do not collect human genome data. The company also stated that it has no affiliation with any government or its military organizations, firmly believing that it does not pose a national security risk to any country.
WuXi Biologics also took to the Hong Kong Stock Exchange to address the issue, stating that the relevant draft bill is still at an early stage and subject to further review and changes by the U.S. legislative body. The company emphasized that its business operations have always been sound and continue to advance in line with its annual and medium-term strategies.
According to a CITIC Securities research report, the content related to Chinese CXO companies in the draft bill is inaccurate and the accusations are unfounded. The report also stated that the possibility of legislation based on the currently disclosed content and status of the draft is low. Chinese CXO companies are deeply embedded in the global biopharmaceutical industry chain and are expected to continue to maintain steady development in the future.
The management team of WuXi AppTec and WuXi Biologics remains confident in the prospects of the companies and does not expect any material adverse changes in their business operations and financial condition. The report also emphasized that the fluctuations in short-term overseas policies do not affect the long-term fundamental logic of Chinese CXO companies, which are still optimistic about their leading position in the global CRDMOs.