US weighs allowing most pharma licensing deals with China: Report
The draft would keep most licensing deals open while barring investments tied to pathogens or weaponizable biotechnology, sources said.
- The Treasury Department is drafting rules likely to permit most US pharmaceutical licensing deals with Chinese companies, excluding only investments tied to pathogens or weaponizable biotechnology. The unfinalized plan could unlock billions in deals.
- Republican Representative John Moolenaar urged Treasury to use the COINS Act to restrict outbound pharmaceutical transactions, arguing US capital fuels China's ascent. Pfizer CEO Albert Bourla countered that restrictions could cut US firms off from vital medicines.
- Outside licensing deals in Chinese biotech were worth $115 billion last year. This year, Bristol Myers Squibb signed a partnership worth up to $15.2 billion, while Pfizer announced an up to $10.5 billion collaboration covering 12 oncology programs.
- Treasury officials are unlikely to unveil these rules before Chinese President Xi Jinping meets President Donald Trump next week, as the draft remains subject to presidential review. Rules could help fill US drug pipelines while providing capital to Chinese firms.
- Democratic Representative Jake Auchincloss criticized proposals to restrict outbound investment, noting, "These are people who think that you can drag and drop semiconductor policy to biotechnology policy." The debate reflects tension between national security and US biotech leadership.
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The United States is developing rules for pharmaceutical companies that invest in China that would probably preserve their ability to close most of the Chinese drug licensing agreements, according to three people who have been informed about the process. This would represent a departure from the Trump government's policy of hardening trade relations with China in other sectors under new national security legislation and would be less restrictive…
EXCLUSIVE: US weighs allowing most pharma licensing deals with China, sources say
The US is working on rules for pharmaceutical companies investing in China that would likely preserve their ability to strike most licensing deals for Chinese drugs, according to three people who have been briefed on the process.
Chinese President Xi Jinping is set to meet with Trump in the US next week.
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