U.S. Congress Fails to Pass Biosecurity Act, WuXi Biologics Resumes Plant Construction

The U.S. Congress has failed to pass the Biosecurity Act this year, a bill aimed at countering Chinese biotech firms. WuXi Biologics, China’s largest contract development and manufacturing organization, has resumed constructing its biopharmaceutical plant in the United States, which it had previously suspended.

On Thursday, the Korea Bio Association and international media reported that the biosecurity legislation Congress had been pushing was not included in the National Defense Authorization Act (NDAA) or the continuing resolution, making its passage this year impossible.

The Biosecurity Act prohibits the U.S. government and companies from receiving federal funding from doing business with Chinese biotech firms. The bill specifically named WuXi Biologics, WuXi AppTec, and genomic analysis service providers Beijing Genomics Institute and MGI Tech as targets for regulation.

Despite enjoying bipartisan support and a high likelihood of passing this year, the Biosecurity Act faced opposition from key lawmakers, including Democratic Representative Jim McGovern of Massachusetts and Republican Senator Rand Paul of Kentucky. Moreover, major Chinese companies targeted by the bill, such as WuXi AppTec, WuXi Biologics, and Complete Genomics, engaged in aggressive lobbying efforts to block its passage.

Most analysts expect Congress to continue debating the Biosecurity Act next year, but some predict that passing the legislation won’t be easy. Local media claim that even if the legislative process resumes next year, amendments to controversial provisions regarding the designation and removal of targeted companies will be necessary. Additionally, the appointment of Senator Rand Paul, who opposed the bill, as chairman of the Homeland Security Committee is expected to make the legislative process more challenging than before.

Meanwhile, WuXi Biologics has resumed construction of its biopharmaceutical manufacturing facility, which it had halted due to the potential impact of the Biosecurity Act. The company is building a $300 million plant in Worcester, Massachusetts. In early January last year, WuXi announced plans to expand the facility’s capacity from 24,000 liters to 36,000 liters to meet growing U.S. demand. However, as the likelihood of the Biosecurity Act’s passage increased in May, the company suspended construction in June.

The recent indication that the bill may not pass has led WuXi to resume construction. In 2020, the company acquired the site for its facility with $6 million in tax credits from the Massachusetts Life Sciences Center and $11.5 million in tax breaks from the city of Worcester.