Almost 20 biopharma and life sciences companies have registered to lobby on a bill that could ban US companies from working with Chinese life sciences contractors, according to federal records.
Since the Biosecure Act was introduced in January, most healthcare companies have steered away from publicly commenting on it. But as the proposal slowly advances in Congress — and as the consequences of a ban on WuXi Apptec, WuXi Biologics and genomics companies like BGI have come into focus — companies in recent months launched lobbying efforts on the bill.
The list of companies that have registered to lobby on the legislation includes many of the biggest names in biopharma, such as Vertex, Amgen, Takeda, AstraZeneca, BeiGene and GSK, services and testing companies including Illumina, Danaher and Thermo Fisher, and advocacy groups for the drug industry, academic centers and other groups.
The lobbying disclosures don’t say what positions the companies have taken, and many declined to comment when reached by Endpoints News. And the industry’s relationship with WuXi is complex: Many drugmakers rely on WuXi to manufacture drugs and help develop treatments, while WuXi also competes against US- and Europe-based contractors.
Vertex — best known for treatments targeting the rare disease cystic fibrosis — spent $1.4 million lobbying in the first quarter on issues before the federal government, including the Biosecure Act. In a Feb. 15 securities filing, the Boston-based biotech said it uses Chinese firms as part of its global manufacturing process. It has looked to diversify manufacturing away from WuXi, according to reporting by the Financial Times (Endpoints is a part of the FT Specialist group, though the publications do not share reporting).
Vertex declined to comment on questions about its lobbying activities related to the Biosecure Act.
Other major drugmakers that have partnered with WuXi entities — including Amgen and GSK, according to corporate records and news articles — also registered to lobby on Biosecure but declined to comment.
While WuXi Apptec faces an existential threat from the Biosecure Act, it spent $115,000 during the quarter, a relatively small amount on lobbying, according to federal records.
WuXi did not return Endpoints’ request for comment.
Industry groups
Much of the lobbying work has fallen to trade groups such as the Biotechnology Innovation Organization, or BIO, which represents biotech companies. BIO initially took a public stand against the bill, then last month switched positions and now says it supports the proposal. It spent a total of about $2.2 million lobbying during the quarter on Biosecure and a host of issues.
BIO declined Endpoints’ request for comment.
Pharmaceutical Research and Manufacturers of America, or PhRMA, lobbied on the legislation as well. The group represents large drugmakers, and has said little about the specific changes it might be seeking to the legislation.
“Biopharmaceutical manufacturers are committed to working constructively with Congress to help protect national and economic interests and make sure patients are not unintentionally impacted with potential drug shortages or disruptions to medicine R&D,” the trade group said in a statement to Endpoints.
The lobbying data also underscore how the target on Chinese firms has created an opportunity for rival manufacturers and DNA sequencing giant Illumina.
Illumina’s $658,750 lobbying spend during the quarter cited the Biosecure Act, among other federal legislation. It competes with DNA sequencing companies Complete Genomics and BGI, which are named in the bill and spent $350,000 and $100,000, respectively.
“Illumina’s mission is to improve human health by unlocking the power of the genome, and our advocacy work in the U.S. reflects all aspects of that mission,” the company said in a statement.
Danaher — a manufacturer that could absorb some of WuXi’s business — did not respond to a request for comment on its lobbying activities. But the company spoke about the impacts of the legislation during an earnings call on Tuesday.
“So if manufacturing and clinical trials, should they shift to other locations, of course, our solutions follow the molecule,” CEO Rainer Blair said.
For other companies, their complex relationship with WuXi muddies the picture of how they stand to gain or lose from the legislation.
Thermo Fisher CEO Marc Casper during an earnings call on Wednesday said the Biosecure Act is making its customers think about their supply chains, even if the bill doesn’t pass.
“We’re likely to be a long-term beneficiary, not per se of the act,” he said.
But Thermo Fisher has also previously partnered with WuXi Diagnostics as part of a $150 million Series B financing round in 2021. Thermo Fisher declined to comment on its lobbying efforts.
Others said not to take their lobbying as an endorsement for or against the bill. A spokesperson for BeiGene, a manufacturer of cancer treatments, said the company had “one meeting with Congressional staff to seek additional information about the Biosecure Act.”
EMD Serono, the healthcare and biopharma business of German drugmaker Merck KGaA, in a statement said it has no position and merely inquired to understand the scope of the bill. Pharmaceutical giant Takeda in a statement tried to strike a middle ground regarding its lobbying efforts.
“We encourage Congress to address this national security concern while at the same time ensuring that the legislation does not unintentionally negatively impact drug supply and ongoing R&D,” Takeda said in a statement.
The lobbying push is coming at an important time for the legislation’s supporters and detractors.
Marne Marotta, a managing director at the law firm Arnold & Porter, told Endpoints in an interview earlier this month that the bill will likely be amended in the coming months and potentially included in the National Defense Authorization Act this fall.
“There’s always the conference in the fall where some of the details can be finessed in,” Marotta said.
Editor’s note: An incorrect description of Merck KGaA’s EMD Serono has been updated. Zach Brennan contributed reporting.