China’s CRDMO firms gain temporary reprieve with Biosecure act delay

The act’s postponement opens opportunities to expand overseas investment.

China’s contract research, development, and manufacturing organisations (CRDMOs) are expected to see a temporary reprieve this year following the delay of the Biosecure Act in 2024, said UOB Kay Hian.

The report said that whilst the act could resurface in a modified form, its delay provides an opportunity for Chinese CRDMO firms to expand their overseas investments and engage with U.S. policymakers.

Meanwhile, companies such as WuXi Biologics and WuXi AppTec are expected to see faster revenue growth next year, supported by their ability to obtain new projects and customers amidst geopolitical risks.