A survey conducted by the Biotechnology Innovation Organization (BIO) has revealed that the majority of US biotech companies are engaged in contractual relationships with Chinese companies. The survey, which covered 124 US biotech companies, found that 79% had at least one contract or product agreement with a manufacturer based or owned in China.
The vast majority of these companies, more than two-thirds, are classified as small, emerging biotechs with fewer than 250 employees. The news comes as legislative action is underway in both the U.S. Senate and House of Representatives that could potentially restrict transactions with Chinese biotech companies like BGI and WuXi AppTec over national security concerns.
BIO, which represents the biotechnology industry, initially expressed opposition to the proposed legislation. However, the organization has since changed its stance, indicating a willingness to work with lawmakers on the issue. Notably, WuXi AppTec, a contract manufacturer with significant operations in the United States, severed ties with BIO earlier this year.
According to the survey, 74% respondents have contracts with Chinese entities for preclinical and clinical services, while 30% have agreements to manufacture approved drugs. Companies estimate that transitioning to new manufacturing partners can take up to eight years, with the most advanced programs requiring the longest transition time.
BIO has warned that a rapid and unplanned separation from Chinese biologics manufacturing could negatively impact millions of patients in the United States. The trade group has called for a comprehensive and carefully considered approach to any potential separation from China-based or Chinese-owned biologics manufacturing operations.
Source: Investing
