US bill poses risks for Wuxi AppTech and its Western drugmaker partners

by Andrew Silver

SHANGHAI (Reuters) – A draft U.S. bill that has triggered a selloff in shares of Chinese biotech firm Wuxi Aptech could deal not only a major blow to the company, but also hit many laboratories and Western drugmakers that conduct research. And rely on it for research. Manufacturing, public data revealed.

A congressional committee focused on China introduced a bill late last month that would ban federally funded medical providers from allowing China’s BGI Group, Wuxi Apptech and other biotech firms to obtain genetic information about Americans .

Similar legislation was introduced in the Senate to prevent federal agencies from contracting with those firms and to prevent the government from contracting with companies that use their equipment or services. This bill still has a long way to go before it potentially becomes law.

Shares of Wuxi AppTech, listed in Shanghai and Hong Kong, fell by nearly 50%. Its Hong Kong shares rose 4% on Monday, while Shanghai shares fell 4% after the company said it has no ties to any governments or their military institutions and is not involved in any of its businesses. Does not collect human genomic data.

Founded in 2000 by its chairman and CEO Ge Li, who earned a doctoral degree in organic chemistry from Columbia University, WuXi is a leader in offering early drug research and development services and contract manufacturing for Western companies, according to its website. The company has been formed.

The company or its affiliate Wuxi Biologics counts Pfizer, AstraZeneca and GlaxoSmithKline, as well as state-funded US laboratories, as its partners. His projects include a research on Alzheimer’s disease with Pfizer researchers, a vaccine component production deal with AstraZeneca and a licensing agreement with GSK on antibodies for cancer…

Read Complete News ➤

Benefits of eating guava for Americans