American drug manufacturers are beginning to move away from cooperation with Chinese partners, due to geopolitical issues and the passage of the biosecurity bill, reported The Wall Street Journal (WSJ).
According to him, manufacturers “from large pharmaceutical companies like AstraZeneca to small biotech firms like Amicus Therapeutics” seek to reduce their dependence on China. “The law forced us to review the sources of materials,” said Amicus Therapeutics CEO Bradley Campbell.
It said these changes could lead to higher prices and delays in the release of drugs, as finding new suppliers takes time and money. Companies are facing difficulties in maintaining uninterrupted supply chains as many organizations look for alternative production lines, the WSJ reports.
Although the changes do not mean a complete severance of ties, the impact on supply chains is noticeable and companies are forced to balance between the new norms and the need to maintain production.
The Biosecurity Act is a bill passed by the US House of Representatives in September 2024 aimed at limiting US business cooperation with Chinese and other foreign biotech companies identified as national security threats. The bill would prohibit federal agencies from buying equipment or services from or doing business with such companies. It must also be approved by the Senate to take effect. The WSJ notes that the prospects for the Senate Biosafety Act's passage in 2024 “remain uncertain, and the current version of the law gives companies until 2032 to sever ties with firms on the list.