U.S. DoD Removes WuXi AppTec From Military List, Clouding Outlook for K-Bio
The U.S. Department of Defense has removed WuXi AppTec, a major China-based contract research, development and manufacturing (CRDMO) company, from its list of Chinese military companies. The move comes about five months after the company was added to the list in June. The decision follows a U.S. cou
The U.S. Department of Defense has removed WuXi AppTec, a Chinese contract research, development, and manufacturing company, from its list of military-linked Chinese firms. This decision, effective Nov. 5, came five months after the company was added in June, following a U.S. court ruling that suspended the Pentagon's designation in a lawsuit filed by WuXi AppTec.
The company has been linked to the People's Liberation Army, but the court's preliminary injunction has suspended the designation. WuXi AppTec, which provides a range of CRDMO services, could be relisted if new grounds emerge. This development complicates the outlook for South Korea's biotech industry, which had hoped to benefit from U.S. pressure on Chinese biotech firms.
However, removal from the list does not automatically exempt a company from designation under the Biosecure Act, another law that could impact Chinese biotech companies. The U.S. biotech industry is pushing for stronger national-level measures, including the establishment of a dedicated biotechnology office within the White House.
U.S. regulatory efforts extend to investment and clinical data oversight, with proposed regulations on biosecurity restrictions and enhanced FDA oversight of clinical trials.
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