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US passes the Biosecure Act

ICICIdirect Research 13 Sep 2024 DISCLAIMER

The US House of Representatives passed the Biosecure Act , which intends to restrict US Pharma companies from doing business with certain Chinese biotech firms with a grandfathering clause of eight years.

The act mentioned names of five Chinese companies- BGI Genomics, MGI Tech, Complete Genomics, WuXi AppTec and Wuxi Biologics for the regulation.

The bill will now head to the US Senate for voting and if it becomes law, then it provides an opportunity for Indian CDMO players. Global pharma companies have already started taking action despite the legislation not yet even a law.

As per F&S report, India CRAMs Industry is currently at USD 7 Billion and is poised to expand at a CAGR of 14% till FY2028 which will be highest amongst other regions. China CRAMs Industry size is USD 25 Billion.

Most of the players have undergone significant capex expansion in recent years with the combined capex figure for Divi’s, Syngene, Piramal Pharma, Hikal and GLS stood at Rs 9600 crore during FY21-24. Suffice to say that they are well prepared to cater to the incremental opportunities stemming from Biosecure Act.

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