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3 chinese companies respond to us biosafety bill: no genetic data collected

2024-09-10

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in response to the u.s. house of representatives voting to pass the proposed biosafety act, wuxi apptec, wuxi biologics, and mgi once again emphasized that "human genome data is not collected in any of their global businesses."

on september 10, wuxi apptec co., ltd. (wuxi apptec, 603259.sh) issued a public statement on the latest voting results of the u.s. house of representatives. "we are very disappointed that the u.s. house of representatives voted to pass the proposed biosafety act. the bill currently makes pre-emptive and unreasonable designations against the company without due process. as a member of the global pharmaceutical and life sciences industry, wuxi apptec always complies with the laws and regulations of each operation location and accepts supervision and inspections from customers and regulators in the united states and other countries."

"we and many in the industry have been closely following the development of the proposed bill and are concerned about its impact on the u.s. leadership in biotechnology innovation, drug development, and patient care, as well as on r&d costs. leading members of the house of representatives are aware of these concerns and share the reservations held by the senators. we note that the house vote is only one step in the legislative process, and we hope that the bill will not continue its legislative agenda without appropriate amendments," said wuxi apptec.

in addition, in an announcement released by wuxi apptec in the morning of september 10, wuxi apptec emphasized, "we firmly believe that wuxi apptec has not, is not, and will not pose a national security risk to the united states or any other country in the past, and the company has never been subject to any sanctions by u.s. government agencies. the company also reiterated that wuxi apptec has no human genomics business, and the company's existing businesses do not involve the collection of human genomic data in the united states, china, or any other region."

on the same morning, wuxi biologics inc. (wuxi biologics, 02269.hk) also issued an announcement stating that as a global biopharmaceutical crdmo platform, the company has neither human genomics business nor collects human genomic data in any of its global businesses. the company firmly believes that it has not, is not, and will not pose a national security risk to the united states or any other country in the past, and strongly opposes any unproven pre-emptive designation without due process. the company will continue to pay close attention to the legislative process and maintain communication with relevant parties. the company is firmly committed to serving global customers and operating in accordance with applicable laws and regulations in all regions where it conducts business.

in addition, shenzhen mgi technology co., ltd. (688114, hereinafter referred to as "bmgi") also issued a statement on september 10, emphasizing that mgi and complete genomics, as upstream equipment providers in the genetic sequencing industry, do not collect any genetic data, and the data generated by customers based on the company's sequencing platform are collected, stored, processed and controlled by the customers themselves.

mgi added that fti consulting, a leading third-party assessment company in the united states, audited mgi's gene sequencer (dnbseq-t7) in october 2023. the results showed that "there was no communication and data transmission with external ip related to sequencing information, and no directly related source code or network vulnerabilities were found."

"the bill is based on incorrect information and unfounded accusations, and instead helps an american company that occupies a high share of the global gene sequencer market to eliminate market competition in the u.s. market. we call for the monopolistic behavior of the u.s. gene sequencer industry not to be ignored, as it will stifle innovation, increase costs, and be detrimental to the benefit of genetic technology for all mankind," said bgi.

according to dazhihui vip, as of the close of september 9, wuxi apptec's a shares rose 1.57%, and its h shares rose 3.90%; wuxi biologics rose 2.53%; and bgi genomics rose 3.42%. in the morning of september 10, the share prices of wuxi apptec and its subsidiaries all fell. as of press time, wuxi biologics fell 7% and wuxi helian fell more than 5%; wuxi apptec and its a shares fell more than 5%, and bgi fell more than 2%.