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Investing.com — Shares of Chinese biotech companies Wuxi Biologics and Wuxi AppTec plunge on Thursday following progress on a U.S. bill aimed at barring Chinese biotech companies from doing business with the federal government. did.
wuxi app tech Co Ltd (SS:) fell 10% in Shanghai trading, hitting the intraday circuit breaker. In Hong Kong, shares of a sister company (HK:) fell by nearly 18%. wuxi biologics (Hong Kong:) fell more than 20%. These two factors were the biggest drag on the index, which fell 0.6%.
The U.S. Senate Homeland Security Committee on Wednesday approved a bill aimed at blocking federal business with Chinese biotech companies amid concerns that Americans' personal health and genetic information could be misused. approved.
News of the bill was first reported in early 2024, causing a sharp decline in Wuxi stocks in late January. The company's stock price is currently struggling to recover from a nearly four-year low.
The bill, which must pass both the House and Senate before presidential approval, is a major headwind for Wuxi, which relies on the United States for much of its revenue.
In its current form, the bill would prevent federal agencies from entering into contracts with Chinese biotech companies deemed of concern, while also preventing the government from entering into contracts with companies that use their equipment. It is an object.
But the bill also poses potential headwinds for the U.S. biotech industry, given that Wuxi and its peers are major suppliers of equipment, research and development, and manufacturing services to U.S. companies.
