How the Biosecurity Law is already impacting U.S. and Chinese life sciences companies

SANDIEGO — A U.S. bill that seeks to restrict American biotechnology companies from working with certain Chinese companies and suppliers remains just a proposal, not law, for now, but the impact of the looming legislation was on full display at a conference this year of the industry’s largest trade group.

Several biotech companies at the Biotechnology Innovation Organization meeting told STAT they are actively considering signing contracts with US-based pharmaceutical companies rather than those named in the bill, even though doing so would increase their costs. “We’re seeing a surge in new business every month,” said an executive at a US-based contract development and manufacturing organization (CDMO), who spoke on condition of anonymity.

Meanwhile, some Chinese suppliers not named in the bill have paradoxically attracted more interest from biotech companies, raising concerns from some customers that they could be blacklisted in the future.