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pre-market emergency announcement.

wuxi apptec announced on the hong kong stock exchange in the morning of september 10 that the company learned that the u.s. house of representatives passed a draft bill numbered hr8333 on the proposed biosafety act on september 9, 2024 (u.s. time). the draft bill passed this time is based on the version previously voted by the house oversight and accountability committee on may 15, 2024 (u.s. time), which includes the designation of wuxi apptec as a "biotechnology company of concern". the company strongly opposes this presumptive and unreasonable designation without due process. the bill intends to restrict the use of funds, loans or subsidies provided by the u.s. government to use certain biotechnology equipment or services provided by designated companies in the performance of government-funded contracts. despite this restrictive clause, the bill also includes a non-retroactive clause that allows designated companies to continue to perform u.s. government-funded contracts for their customers until 2032.

wuxi apptec said that it has not, does 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 sanctioned by any u.s. government agency. the company also reiterated that wuxi apptec has no human genomics business, and its existing businesses do not involve the collection of human genomic data in the united states, china, or any other region.

wuxi biologics also announced in the hong kong stock exchange 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 continue to communicate 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.

as of the close of september 9, wuxi apptec's a shares rose 1.57% and its h shares rose 3.9%, with a total market value of over 100 billion yuan.

event review

in late january 2024, the us biosafety act proposal fermented. the senate version of the proposal was formed on january 25, 2024. it proposed: from the perspective of national biosafety, it is recommended to prohibit the signing of contracts with biotechnology suppliers including wuxi apptec to ensure that foreign biotechnology companies cannot obtain funds from us taxpayers. on january 26, 2024, wuxi shares crashed and hit the daily limit for two consecutive trading days.

on march 6, at a hearing of the u.s. senate homeland security and governmental affairs committee, market concerns further intensified after the senate version of the biosafety act passed the clauses targeting wuxi apptec with a high vote.

at noon on march 7, wuxi apptec issued a clarification announcement stating that the company strongly opposes this pre-emptive and unfair definition without due process, and 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 or in the future. the company also reiterated that wuxi apptec has no human genomics business, and its existing businesses will not collect human genomic data.

on march 13, the u.s. biotechnology innovation organization (bio) issued a statement announcing that it would support the u.s. biosafety act and work with the u.s. congress as the legislation progresses. the organization terminated its cooperation with wuxi apptec.

on may 10, the united states issued a revised biosecurity act, which intends to give more time to sever the ties between chinese and american biotech companies. the bill will require american companies to end their cooperation with these companies by 2032.

the u.s. house of representatives passed the biosecurity act (hr8333) by 306 votes to 81 on the 9th local time. the bill restricts the u.s. federal government from doing business with some biotechnology providers on the grounds of "national security."