Leading Chinese biotech firm Wuxi AppTec says US hurdles will not dim acquisition appetite
- Wuxi AppTec’s executives say they will fully comply with stringent US requirements as they pursue deals in life sciences and biotech
Tighter US government scrutiny of Chinese investment in US biotechnology companies will not dent its interest in pursuing investment opportunities there, said executives of Wuxi AppTec, Asia’s largest provider of contract pharmaceutical research.
“It is not a problem, we will just make the necessary filings according to the legal requirements,” board secretary Yao Chi said at a press conference on Friday to announced the company’s Hong Kong listing plan.
The Shanghai-based firm aims to raise up to US$1 billion from the IPO. The company said about 30 per cent of the proceeds will be used to fund acquisitions and for investments in innovative health care start-ups.
The US Treasury Department recently announced sweeping changes to rules that give the Committee on Foreign Investment in the United States (CFIUS) the power to force foreign acquirers of US assets in high technology fields – including life sciences and biotech – to make mandatory filings.
Even small investments in US firms that develop “critical technologies” in 27 industries will be subjected to the review process, which could potentially lead to rejection of the deals if they are seen as a threat to US national security.
The US Commerce Department is also preparing regulations on export controls covering “emerging and foundational technologies” that is likely to include biomaterials, biopharmaceuticals, new vaccines and drugs that have been the subject of recent state economic espionage efforts from groups in Russia, China and Iran.
Chairman Li Ge said he is not too concerned about these developments on its clients’ Sino-US joint development and technology licensing deals.
