WuXi AppTec Biotechnology Co., Ltd.

Lawmakers are considering a compromise to legislation targeting Chinese life science companies that would add an executive branch review instead of automatically barring biopharma companies from working with the Chinese firms, according to sources. The potential revisions deal with a key part of the legislation that specifically names the Chinese companies. A version of the bill passed by the House of Representatives would directly force biopharmas to eventually cut ties with companies including WuXi Biologics, sister company WuXi AppTec, and three genetic sequencing companies: MGI, BGI and Complete Genomics. A compromise version could add an executive branch review to the process, giving the White House or federal agencies final say on the enactment of restrictions, according to one person who had seen a version of changes circulating earlier this week, and according to several other people who were familiar with the potential changes. There was no indication that another core provision, grandfathering in existing contracts, had been changed. The situation appears to be highly fluid, and it’s not clear that any deal has yet been reached. The proposals may change further, and any potential deal could fall apart in Congress’ rush to finish its work before the session ends. A deal could move the Biosecure legislation forward before the end of the year. And it could offer a reprieve for the named contract manufacturing and genomics companies, and potentially also the biotech and pharma companies that rely on them to develop and test drugs. But the Chinese companies would still be at the front of the line for a review, and could still end up being barred. Reached for comment, Complete Genomics said that “any proposal that keeps the names in the bill still would have major constitutional problems as it lacks due process protections.” The company said it hadn’t been given a reason as to why it was being named in the bill, and said that it does not collect sensitive DNA data that could pose a security risk. In financial filings, dozens of companies have flagged that any limits on work with WuXi companies could lead to delays in drug development or procurement. WuXi AppTec declined to comment. The updated bill still includes a grandfathering provision that allows existing contracts with the Chinese companies to continue until 2032, according to sources. Sources and House Speaker Mike Johnson (R-LA) have said that Biosecure could be attached to the annual defense spending bill, which needs to get done before the inauguration. News of a possible compromise was reported earlier by Politico .

SHANGHAI, Dec. 15, 2022 /PRNewswire/ -- WuXi Biologics ("WuXi Bio", 2269.HK), a leading global Contract Research, Development and Manufacturing Organization (CRDMO), announced that its subsidiary WuXi Biologics (Shanghai) Co., Ltd. has been removed from the Unverified List (UVL) by the U.S. Department of Commerce, effective Dec. 16, 2022. Consequently, both subsidiaries WuXi Biologics Co., Ltd. and WuXi Biologics (Shanghai) Co., Ltd. have been successfully removed from the UVL. In February 2022, two subsidiaries of WuXi Biologics – WuXi Biologics Co., Ltd. and WuXi Biologics (Shanghai) Co., Ltd. – were placed on the UVL due to delayed verifications required for the receipt of certain products exported from the United States. Subsequently, both subsidiaries successfully completed the on-site end-use checks conducted by the U.S. Department of Commerce, in coordination with China's Ministry of Commerce (MOFCOM). WuXi Biologics Co., Ltd. was removed from the UVL on Oct. 7, 2022. WuXi Biologics is committed to operating with the highest standard of compliance and in accordance with relevant laws and regulations. About WuXi Biologics WuXi Biologics (stock code: 2269.HK) is a leading global Contract Research, Development and Manufacturing Organization (CRDMO) offering end-to-end solutions that enable partners to discover, develop and manufacture biologics – from concept to commercialization – for the benefit of patients worldwide. WuXi Biologics views Environmental, Social, and Governance (ESG) responsibilities as an integral component of our ethos and business strategy, and we aim to become an ESG leader in the biologics CRDMO sector. Our facilities use next-generation biomanufacturing technologies and clean-energy sources. We have also established an ESG committee led by our CEO to steer the comprehensive ESG strategy and its implementation, enhancing our commitment to sustainability. For more information about WuXi Biologics, please visit: . Contacts Media [email protected] Business [email protected] SOURCE WuXi Biologics

WuXi Biologics has cause to celebrate as it finds itself removed from the US Department of Commerce’s unverified list. The China-based contract research and manufacturing giant was initially placed on the list in February of this year after delays in verifications for certain products that were being exported to the US. At the time, the company had been importing items that were subject to US export control, but with the commerce department’s verification process not being able to take place due to Covid-19, it was enough for the company to find its way onto the unverified list. However, WuXi Biologics stressed that it was not blacklisted. Still, the move managed to knock the company’s market value down almost $10 billion, and drive its stock price down 26%. On the news of the removal, the price did see a slight increase before evening out. The price is still down 58% since last year. WuXi Biologics was on the correct path to getting off the list this summer as a US export control officer was able to inspect facilities in the city of Wuxi. According to the company, this onsite inspection was in coordination with China’s Ministry of Commerce. The company is also working to ensure that its other facilities and subsidiaries are up to standard as well. “The company is also working closely with relevant government authorities to schedule the on-site end-use check of its other subsidiary, WuXi Biologics (Shanghai) Co., Ltd., and will commence the UVL delisting process for the such entity as soon as the check is completed,” said a statement from WuXi Biologics. This comes as the company has been investing heavily in infrastructure expansion. In June, the company announced it would spend over $1.4 billion over 10 years expanding its facility in Singapore . The expansion will add around 120,000L of biomanufacturing capacity to its global network by 2026 and is expected to employ around 1,500 staff.