Biotech trade association to split with China’s WuXi AppTec
A WASHINGTON-BASED global trade association representing biotechnology companies is taking steps to “separate” from Chinese member Wuxi AppTec, according to a letter from its new CEO on Wednesday (Feb 13).
The Biotechnology Innovation Organization (BIO) also said it would support proposed legislation that restricts United States business with WuXi AppTec and other biotech companies of concern, changing its position from last month.
WuXi AppTec, in a letter to BIO dated Tuesday that it provided to Reuters, said it was ending its membership in the organisation.
Shares in Wuxi AppTec in Hong Kong dropped 7.7 per cent on Thursday, while its Shanghai shares fell 4.6 per cent.
A US Senate committee voted to approve a bill last week that could prohibit federal agencies from contracting with Wuxi AppTec and other Chinese biotech companies on national security grounds. A companion bill was introduced in the House in January.
The bill is designed to keep Americans’ personal health and genetic information away from foreign adversaries. It drove a sell-off in the shares of WuXi AppTec after news about it reached Chinese markets last month.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BIO has an “unwavering commitment to the national security of the United States and our allies”, John Crowley, who became BIO’s CEO and president last week, said in the letter to Representative Michael Gallagher, chair of the select committee on China in the US House of Representatives.
“BIO will support the Biosecure Act and work with you and other members of Congress as this legislation progresses,” Crowley wrote. “BIO is taking steps now to separate from Wuxi AppTec regarding membership in the organisation.”
Last month, then BIO CEO Rachel King wrote a letter urging the committee to reconsider the proposed legislation, and took issue with companies being named in it.
WuXi AppTec has said the bill “relies on misleading allegations and inaccurate assertions”. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
OUE Healthcare proposes sale of mixed commercial site for RM125 million
Fashion brand Esprit files for bankruptcy for its European business
Burberry's profit slumps 34% as luxury demand slows
Cordlife shareholders vote to remove 3 directors, including co-founder Ho Choon Hou, from board
Google executives hint that AR glasses are poised for a comeback
Converse to cut jobs as part of Nike’s cost-savings plan