WuXi splits from BIO as trade body backs BIOSECURE Act

The Biotechnology Innovation Organization (BIO) has said it is parting company with Wuxi AppTec, while voicing support for US legislation that would block Chinese biotechs from federal funding and contracts on national security grounds.

The bipartisan BIOSECURE Act was tabled earlier this year and, if enacted, would restrict US executive agencies from contracting with some overseas biotechnology providers on data security concerns. The bill mentioned contract development and manufacturing organisation WuXi AppTec and Chinese genomics specialist BGI Group by name.

Last week, a US Senate committee voted to approve the act, taking it one step closer to fruition and, while there is still a long way to go before it could become law, the BIO’s endorsement is a boost to the bill's backers.

BIO’s support, which represents a change from its earlier position, came on the same day that the House of Representatives passed a bill that could see Chinese social media platform TikTok banned in the US, also on the grounds of data security.

“Our adversaries abroad have stated that they intend to become the biotechnology centre of excellence in the world,” said BIO’s new chief executive, John Crowley, in a statement. “America and our allies cannot let this happen. Securing and advancing our pre-eminence in biomanufacturing will be one key component of a multi-prong approach to secure and advance this strategic imperative in biotechnology.”

WuXi AppTec said in a letter to Crowley that it would end its membership as the situation risks "distracting from the important and honorable work of BIO to represent the biotechnology
industry and its vital role in delivering safe and effective treatments to patients in need."

WuXi AppTec and BGI, which both make a significant proportion of their revenues from US contracts, have denied that they pose any security threat. And Crowley’s predecessor at BIO, Rachel King, had urged lawmakers to reconsider the legislation, calling it a “serious hazard for the biotechnology industry in its current form.”

In a letter to Rep Michael Gallagher, chair of the select committee on China in the House, Crowley wrote: “BIO will support the BIOSECURE Act and work with you and other members of Congress as this legislation progresses."

He also confirmed that BIO “is taking steps now to separate from WuXi AppTec regarding membership in the organisation.”

Last month, WuXi AppTec published an open letter in which it said the BIOSECURE Act is “a misguided US legislative initiative to target our company without a fair and transparent review of the facts. We strongly object to blanket allegations and pre-emptive actions against our company without due process.”