At the recent meeting of the Biotechnology Innovation Organization, many American biotech companies expressed concerns about potential U.S. legislation that could restrict their ability to work with Chinese firms and suppliers. Although the bill has not yet become law, its impact was evident as companies were actively seeking deals with U.S.-based manufacturers instead of those named in the legislation, despite the increased cost associated with this decision. Some biotech companies even reported a significant uptick in new business with U.S.-based contract development and manufacturing organizations.
Interestingly, some Chinese suppliers not mentioned in the bill are experiencing increased interest from biotech companies. However, these suppliers have also heard from customers who are concerned that they could be blacklisted in the future. The uncertainty surrounding the proposed legislation is causing companies to rethink their partnerships and supply chain strategies.
As the industry awaits the outcome of the proposed legislation, the potential implications are already driving shifts in business relationships and supply chain decisions. The future impact of this bill, if passed, remains to be seen, but biotech companies are taking proactive measures to mitigate the risks associated with the uncertainty surrounding working with Chinese firms and suppliers.