The U.S. Senate version of the “Biosafety Act” has caused a delay in the review process, leading to significant market implications for pharmaceutical outsourcing companies, particularly WuXi. The bill, which aims to restrict U.S. federal agencies from entering contracts with Chinese biotech companies such as BGI, WuXi AppTec, and their subsidiaries, has now been postponed in the Senate.
This development has resulted in a positive shift in the trend of pharmaceutical outsourcing concept stocks, with WuXi AppTec (02359.HK), WuXi Biologics (02269.HK), Asymchem (06821.HK), and Pharmaron (03759.HK) experiencing increases in their stock values.
In response to this news, WuXi Biologics and WuXi AppTec, the companies directly affected by the bill, have issued clarification announcements. Both companies emphasized that the bill is still at an early stage and subject to further review and changes by the U.S. legislative body. They also reassured investors that their current business operations remain sound, and they do not engage in the collection of human genome data.
Industry insiders and analysts have expressed skepticism about the bill’s passing rate, citing the lengthy legislative process and the low historical passing rate for similar proposals. In light of this, there is considerable uncertainty surrounding the bill’s progression and its potential impact on Chinese biotech companies.
However, the financial community has issued a warning, reminding investors that the content, data, and tools in this article do not constitute investment advice and are for reference only. It is essential for investors to exercise caution when engaging in the stock market, given its inherent risks.