2024 Review: Biosecure Act, One Year On
（the article has been updated to make the text concise and cohesive)
Nearly a year ago, on January 13, 2023, the U.S. Congress Select Committee on China officially released the Biosecure Act. This bill aimed to restrict entities designated as “Biotech of Concern” from securing federal contracts in the United States.
As of the end of 2024, the Biosecure Act had passed both the U.S. House of Representatives and the U.S. Senate but was notably excluded from the final version of the large Defense Authorization Act. Despite this, the bill's impact has been strongly felt across the industry.
One company directly affected by the Biosecure Act, WuXi AppTec, announced a significant move: it will sell its gene and cell therapy business unit in the U.S. The company signed an agreement with private equity firm Altaris to sell WuXi Advanced Therapy for an undisclosed amount. This suggests that the Biosecure Act’s potential consequences for WuXi could be severe.
In response to these pressures, WuXi has increasingly turned to domestic biotech startups for growth. Celebrating its 24th anniversary on December 2, the Shanghai-based company reaffirmed its commitment to supporting biotech ventures, many of which trace their roots to China. WuXi’s leadership emphasized its ongoing partnership with innovators, declaring:
"The birth of new drugs and quality drugs is a journey filled with passion and dreams. We will walk alongside every innovator, steadfast in our commitment to their success."
In the wake of the slim passage of the Defense Authorization Act on December 9, WuXi’s stock saw a positive uptick. The dual-listed company (HK Stock code: 2359) saw a rise of over 8%, closing at HKD 58.24, while WuXi Biologics (stock code: 2269) also surged by more than 8%, closing at HKD 18.74, despite broader market declines.
WuXi has been a key player in nurturing biotech innovation in China for many years. The company has been involved in several high-profile deals, particularly in the field of antibody-drug conjugates (ADCs). For example, on December 16, WuXi Biologics, along with Hangzhou ADC, signed an agreement to license three antibody assets to Aadi Therapeutics, which is listed on the Nasdaq. In turn, Aadi sold its cancer drug Fyarro to Japan's Kaken Pharma.