WuXi shares plunge as biotech group aims to cut ties

WuXi AppTec (2359) and WuXi Biologics (2269) slumped about 13 percent after BIO - the world's largest trade group for the biotechnology industry - said it will support the US Biosecure Act that aims to sever ties with some of China's biggest health care companies.

BIO's leaders had discussed the serious consequences such a move may have on the US pharmaceutical industry and the supply of medicine globally, and is taking steps now to separate from WuXi AppTec regarding membership in the organization, according to a statement.

The bill bars federally funded institutions from contracting with "foreign adversary" biotech companies "of concern."

WuXi AppTec has said the bill "relies on misleading allegations and inaccurate assertions."