Source: Bloomberg
China Biotechnology Company may get an eight -year buffer period due to a draft of the Amendment Act in the United States.This bill will inevitably disrupt the global pharmaceutical supply chain.
The US revised version of the Biological Safety Act will allow pharmaceutical companies to decide with the "attracted" biomedical company on January 1, 2032.The bill aims to weaken China's influence in the United States.Prior to that, the regulations will not apply to contracts signed with some companies at least 60 days before the release of the regulations.
The draft will provide a few years for companies such as Yaoming Kant and other bills, reorganizing business to reduce financial impact.The new version of the draft is also named Yaoming creatures that belong to the "Yaoming Department".The two jointly provide research and production support for most large pharmaceutical companies and dozens of innovative companies in the world.
"The latest draft is tentatively inspired by 2032 as the final period of decoupling. I believe that the eight -year period can make the Yao Ming department have time to achieve soft landing," Morgan Stanley analysts Sean Wu and Daisy Cheng are posting.Report to the customer.
The bill prohibits target biotechnology companies and any company that cooperates with it to obtain US Federal Contracts.Since the launch of the bill earlier this year, this revision has provided a rare breathing opportunity.At the beginning of the year, the introduction of the bill made Chinese biotechnology giants the focus of competition between the two superpowers in the world.This competition has swept all areas from chip technology to electric vehicles.
The U.S. House of Representatives Supervision and Accountability Commission is scheduled to review the draft on Wednesday, which may be finalized.
"Although this is indeed the most favorable progress in the pharmaceutical department, no one knows how the hearing results of the House of Representatives on May 15th," Bernstein Chinese Pharmaceutical and Biotechnology High -level Research Analyst RebeccaLIANG said, "Is it or immediately decoupled in 2032 and both."
Yaoming Kant soared 15%in the Hong Kong market, and then quickly vomited the increase.Yaoming biological stocks fell 8.3%.
Wilfred Yuen, an analyst at the Dawa Capital Market, said that many people in the industry expect that the bill will add the clauses of the grandfather, but it is the first time that the limited time limit is the first time.Yuen said that although it was postponed by American companies, it should help transition steadily, but it also shows that restrictions are advancing forward -generally not good for Chinese contract research and development and manufacturing companies.
LIANG said that it will be delayed that eight years will make the Department of Pharmaceutical's time developing non -American business overseas, establish local business, and create a firewall that can alleviate data that can alleviate national security concerns.
"Eight years is long," she said, "In this case, we think most downward risks can be resolved."
