Drug firms slow to cut China ties

Few life sciences companies have taken steps to cut ties with firms named in the proposed US legislation aimed at cutting reliance on China's drug supply chain, a survey showed, underscoring lingering uncertainty around the bill.

Although 26 percent of companies are looking to disconnect from those named - including BGI, MGI Tech, WuXi AppTec (2359) and related entities - a June poll conducted by LEK Consulting found that only 2 percent of life sciences companies have severed ties and 11 percent reported no impact on their partnership decisions.

The Biosecure Act, if enacted, would restrict US federal-funded medical providers from contracting with the named companies and others connected to "foreign adversaries." The bill, which was introduced in January, was omitted from the National Defense Authorization Act, making it unlikely to be passed by Congress before the US presidential election in November.

Bloomberg