Exclusive-US weighs allowing most pharma licensing deals with China, sources say

U.S. regulators are crafting rules for drug companies investing in China, in a move that could maintain the companies' ability to engage in most licensing agreements for Chinese pharmaceuticals. This approach contrasts with the Trump administration's approach, which aimed to tighten business relations with China under new national security legislation.

The proposed rules, under consideration by the U.S. Treasury Department, would permit U.S. pharmaceutical firms to invest in promising new drugs developed by Chinese entities, provided the investments do not involve areas related to pathogens or biotechnology that could potentially be weaponized. According to an analysis by KFF Health News, based on FDA data, there are numerous post-market studies that have been delayed, with some delays lasting more than a decade.

This issue is concerning as it could expose patients to products that may cause more harm than good, given that relying on post-approval studies to address concerns could potentially result in significant financial waste and incentivize manufacturers to develop ineffective or risky products.