$药明生物(02269)$ The biotech industry’s major lobbying group in Washington will end its association with the Chinese services company WuXi AppTec, which has been targeted by members of Congress as a US national security risk.
In a press release Wednesday afternoon, the Biotechnology Innovation Organization said it will take steps to “separate from WuXi-AppTec regarding membership” and support the BIOSECURE Act. That legislation would potentially ban WuXi and several other Chinese healthcare firms from doing work in the US or with US companies.
“Securing and advancing our preeminence in biomanufacturing will be one key component of a multi-prong approach to secure and advance this strategic imperative in biotechnology,” BIO CEO John Crowley said in the group’s statement. He also sent a letter to Rep. Mike Gallagher (R-WI), chairman of a House select committee that’s focused on the Chinese Communist Party, aiming to stress the biotech industry’s “importance to national security.”
WuXi leaving BIO’s membership rolls could free up the trade group to lobby on behalf of the industry on the issue, without appearing to do so directly on behalf of WuXi.
In a letter responding to BIO, WuXi’s COO for the US and Europe Richard Connell said the company would end its membership in the trade group, effective immediately. Connell said WuXi has been the target of “misinformed efforts” that strip the company of due process.
“We believe that a voluntary separation from BIO at this time will allow BIO to continue focusing on educating policymakers, raising awareness among the public, and advocating for the industry – which, as this episode demonstrates, is of critical importance,” Connell said.
The company’s ties in biotech and pharma run deep, as Endpoints News reported earlier Wednesday, with many companies at risk of business impacts if work with the Chinese company is banned.
BIO has faced growing pressure from Congress after Gallagher wrote to Attorney General Merrick Garland earlier this month, alleging that the trade group was lobbying on behalf of China because of WuXi’s alleged ties to the government there. The trade group has denied that it is acting as an unregistered foreign agent.
A Senate committee advanced the BIOSECURE Act last week by a near unanimous vote as politicians from both parties aim to limit China’s influence in the US, both in biopharma and other industries.
Editor’s note: This story has been updated with additional details.