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US Pharma Eyes China Deals Amid Shifting Rules
18 Sep
Summary
- US Treasury developing framework for pharmaceutical deals in China.
- Regulations to target high-risk areas like bioweapons precursors.
- Potential for billions in deals to boost US drug pipelines.
The US Treasury Department is formulating a sector-specific regulatory framework that is expected to permit most US pharmaceutical companies to proceed with licensing agreements and investments in China. This approach represents a departure from broad restrictions, opting instead to target high-risk areas, including pathogens and biotechnology with potential weaponization uses.
This shift could unlock billions of dollars in deals, strengthening US companies' drug pipelines and providing capital to Chinese firms. GlobalData research indicates that licensing deals involving Chinese biotech companies totaled $115 billion last year. However, some US lawmakers and smaller pharmaceutical companies view such investments as a national security risk that could undermine US leadership in medicine development.
It is unlikely that the Treasury will announce any new regulations concerning pharmaceutical investments before an upcoming meeting between Chinese President Xi Jinping and former President Trump in the United States. The economic competition between the US and China continues to intensify across various strategic sectors.
