Could new US investment curbs complicate China’s biotech licensing surge?
New draft rules from the US Treasury Department propose adding biotechnology to an outbound investment screening program, increasing scrutiny on transactions with "countries of concern" like China. While drug licensing agreements are currently unaffected, analysts like David Zhang of Trivium China suggest these rules will make it harder for Chinese biotech firms to attract direct US investment or enter joint ventures.
The US Treasury Department's newly released draft rules are set to intensify examination of US outbound investments in biotechnology, specifically targeting transactions involving "countries of concern" such as China. US Treasury Secretary Scott Bessent has added biotechnology to this screening program, placing a broad range of transactions under greater scrutiny.
David Zhang, an analyst at Trivium China, indicates that these proposed regulations are likely to make it considerably more difficult for Chinese biotech companies to secure direct US investment or establish joint ventures. This increased oversight could affect critical avenues for growth and collaboration.
Despite the broader impact on investment and partnerships, drug licensing deals themselves are reported to be untouched for now. This distinction suggests that while capital access and strategic alliances for Chinese biotech firms face new hurdles, the current flow of intellectual property through licensing may continue without immediate disruption.
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