BIOSECURE Act Puts Pharma-China Supply Chains at Risk
Proposed US legislation restricting biotechnology equipment and services from Chinese suppliers requires pharmaceutical companies to begin scrutinizing their supply chains now, before final rules are issued.
The proposed US BIOSECURE Act, which is advancing through Congress, would prohibit federal agencies from contracting with or extending loans and grants to companies that use biotechnology equipment or services from certain Chinese "companies of concern." This poses a significant risk for pharmaceutical and life sciences companies whose global supply chains rely heavily on major Chinese contract research, development, and manufacturing organizations for everything from discovery to clinical trials and commercial production.
For sophisticated clients and their counsel, the act requires an urgent and thorough review of all supply-chain and third-party vendor relationships to identify and mitigate potential dependencies. Untangling these complex contractual ties will be a major undertaking. The bill's broad scope and phased implementation timeline mean that companies must act now to avoid future disruption to research programs and manufacturing, and to ensure they remain eligible for US government funding and contracts. Counsel should be mapping supply-chain vulnerabilities and evaluating alternative partners before the final rules are issued.