Source: Finance Federation Author: Zhou Ziyi

A little later on Wednesday (March 13) EST, the Biotech Innovation Organization (BIO), a representative of the Global Biotechnology Industry Association headquartered in Washington, USA, announced that it will meet with Chinese members$WUXI APPTEC (02359.HK)$Undertake a “separation”, remove their membership, and end their partnership.

The organization also stated that they will support a proposed Senate legislation aimed at restricting the business of interested US and foreign biotech companies.

According to a press release on BIO's official website, the organization is taking steps to remove PharmacomingKangde's membership in the organization.

However, after browsing BIO's “member directory”, I found that the name of Yao Ming Kang De is still on the list.

Looking at the market, Yao Ming Kangde continued to decline after opening. By the end of early trading, its A share (603259.SH) fell 4.74%, and Hong Kong stock (02359.HK) fell 9.38%.

It concerns a bill

Today's developments seem related to a bill passed by a relevant US Senate committee hearing last week. Last week, at the US Senate Homeland Security Committee hearing, the Biosafety Act (BIO-CURE Act) was passed almost unanimously (11:1). The bill prohibits federal agencies from signing contracts with other foreign biotechnology companies, including Pharmacovigene and BGI, on the grounds of so-called national security.

In the next step, the committee is expected to first organize and revise the bill internally, and then send the Biosafety Bill (S.3558) to the Senate for review and voting by all members, but the time for the Senate review has not yet been announced.

In January of this year, the House of Representatives proposed a supporting bill. The bill aims to keep Americans' personal health and genetic information away from foreign competitors.

Subsequently, in February, the White House's official website published an executive order by US President Joe Biden aimed at protecting Americans' sensitive personal data from being used by the countries concerned. Although the executive order does not specify a specific company, it will focus on Americans' most personal and sensitive information, including genomic data, biometric data, personal health data, geographical location data, financial data, and certain types of personally identifiable information.

According to some analysts, the role played by this executive order is in line with the Biosafety Act.

In response to the Biosafety Act, John Crowley, who took office as CEO and President of BIO last week, said in a letter to Michael Gallagher, chairman of the US House Special Committee on China Affairs, that BIO “is unswervingly committed to the national security of the United States and its allies.”

“BIO will support the Biosafety Act and work with you and other members of Congress in the legislative process,” Crowley wrote in the letter.

It's worth mentioning that last month, then-BIO CEO Rachel King also wrote a letter to Congress, and the position was quite different from that of newly appointed Crowley, when King urged a reconsideration of the proposed legislation and questioned the company name mentioned in it.

Meanwhile, Yao Ming Kant's statement on the bill is that the bill “relies on misleading accusations and inaccurate assertions.”

edit/lambor