A new version of the controversial bill removes the specific company names that were included in a previous iteration but still requires the industry to ditch Chinese biotech contractors in order to receive federal dollars.
The BIOSECURE Act, which seeks to restrict biopharma companies from working with Chinese firms, has hitched a ride on a broader defense spending bill worth $925 billion that cleared the U.S. Senate Thursday.
Senators managed to come together to pass the bill despite a government shutdown that has otherwise paralyzed most federal activities. The annual bill funds the Pentagon and other defense activities and was passed in a 77-20 vote, Politico reported.
The BIOSECURE Act became a major concern for pharma companies in 2024, as lawmakers introduced the legislation to force U.S. drug manufacturers to cut ties with certain Chinese companies. It went through various iterations and at one point specifically named a handful of Chinese biotechs and services companies of concern, including WuXi AppTec and WuXi Biologics. If passed, drugmakers would not have been able to purchase equipment or contract services from the named company.
The legislation bill easily passed through the House in September 2024 but ultimately faded into the background, and the concern abated.
This summer, however, a new version was revived by Senators Bill Hagerty (R-TN) and Gary Peters (D-MI) as an add-on to the national defense spending package. The newly reintroduced legislation doesn’t name specific Chinese companies but prohibits companies receiving U.S. federal funds from contracting with any Chinese company.
The original BIOSECURE Act was widely seen as potentially damaging to the biopharma industry. Many major pharmas noted their work in China, including contracts with the companies specifically named. But the proposed legislation did spur companies to seek to diversify away from Chinese companies.
The defense bill will now go to the Senate and House Armed Services committees for consideration.
