It has been widely reported that in early February US intelligence officials told senators working on a biotech security bill, off the record, that WuXi AppTec had transferred the US intellectual property without consent according to two sources.
Reuters reported that a classified briefing to several senators was led by the FBI, the State Department, and the Office of the Director of National Intelligence. Those officials are believed to have said that Wuxi AppTec and other Chinse entities had engaged in activity in the US that goes against national security interests, the sources allegedly said on condition of anonymity.
OSP contacted WuXi AppTec this week to see if they stood by their stance which was to deny all allegations.
A spokesperson for the pharma firm said: “The proposed US legislation relies on misleading allegations and inaccurate assertions to propose pre-emptive and unjustified prohibitions against our company without due process.
“Like many across the industry, we have concerns about the significant impact it would have on the many U.S. biotechnology and pharmaceutical companies that rely on our services to bring lifesaving drugs and treatments to patients globally.
Not posing a national security risk
“We operate in a highly regulated industry and fully comply with the strict reporting, oversight, and/or inspection requirements of our customers and multiple US federal agencies – none of which has placed our company on any sanctions list or designated it as posing a national security risk.
“With multiple steps remaining in the legislative process, we will continue to ask lawmakers to consider the facts and the serious consequences for our customers and the patients who rely on the innovative and lifesaving work they perform. As we do this, our number one priority continues to be providing customers around the world with resources and capabilities to advance discoveries in the life sciences and deliver treatments to those in need.”
This all ties in with the BIOSECURE Act, a bill introduced in Congress on January 25 this year (2024) that prohibits federal contracting with certain biotech providers connected to foreign adversaries, with exceptions.
Specifically, the bill prohibits executive agencies from procuring or obtaining any biotechnology equipment or service produced or provided by a biotechnology company of concern, entering into a contract, or extending or renewing a contract that uses such equipment or service or that will require the direct use of such equipment or services. Those agencies may not obligate or expend loans or grant funds for such purposes.
A biotechnology company of concern includes BGI, MGI, Complete Genomics, WuXi AppTec, and any subsidiary, parent affiliate, or successor of such entities, and any entity that is subject to the jurisdiction, direction, control, or operates on behalf of the government of a foreign adversary; is involved in the manufacturing, distribution, provision, or procurement of biotechnology equipment or service; and poses a risk to US national security based on specified activities.
