306:81! Narrow Vote in US House of Representatives, Wuxi AppTec Faces Business Restrictions, Biotech Giants Face Life-or-Death Test!

The U.S. House of Representatives on Monday passed a bill aimed at restricting business with China's Wuxi Apptec (603259.SS), BGI (BGI) and several other biotech companies on national security grounds. It was the first vote on the BioSecurity Act, which would prohibit the federal government from contracting with targeted companies and companies that do business with them. Supporters argue that the measure is necessary to protect Americans' personal health and genetic information, as well as the nation's drug supply chain.

The bill passed by 306 votes to 81, easily exceeding the two-thirds majority needed for the process. The bill must pass the U.S. Senate before it can be sent to President Biden to be signed into law. In the House debate earlier on Monday, the chairman of the House Select Committee on China, John Moolenaar, and ranking member Raja Krishnamoorthi were among those who supported the bill.

Wuxi Apptec Biologics Co LTD (2269.HK), open new label, which is the target, is building a facility in his district of Massachusetts. Wuxi AppTec did not immediately respond to a request for comment. Wuxi AppTec said in a statement it was "disappointed" by the House vote, which it said "preempts and unreasonably designates our company without due process."

Hong Kong-listed shares of Wuxi AppTec and Wuxi AppTec were down more than 10 percent and 7 percent, respectively, in early trading on Tuesday. The U.S. Senate Homeland Security Committee voted to approve a similar bill in March, but it is unclear if and when the full Senate will vote on the measure. The companies targeted have all maintained that the measure is based on false and misleading allegations and will restrict competition. They deny they pose any threat to U.S. national security and say they should not be included in the bill.

"We are disappointed that the US legislative process is being used to pick winners and losers," BGI said in a statement. The statement reiterated that it did not pose a national security risk. Other companies named include China's MGI and its California-based subsidiary Complete Genomics.

"As we have repeatedly emphasized, MGI and Complete Genomics, as device vendors, do not have access to, collect or maintain patient genetic data, and our customers maintain full control over any data they generate," MGI said in a statement.

A spokesman for Complete Genomics said "geopolitics, not facts" drove the bill through the House. "We, along with many in the pharmaceutical and life sciences industries, are deeply concerned about the impact of this legislation on America's leadership in biotechnology innovation, drug development and patient care," the spokesperson said.