INDUSTRY BRIEF: Trump eyes curbs on Chinese drugs, drawing industry pushback

The administration of U.S. President Donald Trump is weighing restrictions on the import of drugs and experimental therapies from China, a move that could disrupt the U.S. pharmaceutical industry and limit patient access to treatments, according to a New York Times report.

The draft proposal for an executive order would require U.S. companies seeking to acquire Chinese drugs to undergo mandatory review by the Committee on Foreign Investment in the United States (CFIUS). It would also raise scrutiny and regulatory fees at the Food and Drug Administration (FDA) for clinical trial data originating in China. In addition, the plan calls for boosting domestic production of antibiotics and painkillers, with tax incentives and preferential government purchasing to reduce reliance on drugs manufactured in China.

The potential move has ignited opposition from global drug giants. Some investors such as Peter Thiel and venture capitalist Joe Lonsdale back the proposal, arguing that China’s fast-rising biotech sector poses an “existential threat” to the U.S. They hold large stakes in American biotech start-ups that have struggled to compete with China’s cost advantages. But pharmaceutical giants like Pfizer (PFE.US), AstraZeneca (AZN.US) and Merck（MRK.US）have snapped up low-cost experimental drugs from China in recent years, viewing them as vital to their pipelines, and are wary of the new restrictions.

Some 38% of major pharmaceutical acquisitions in the first half of this year involved Chinese drugs, compared with virtually none a decade ago. At the same time, China has already overtaken the U.S. in the number of new drug clinical trials launched this year, while America’s biotech IPO market remains in a slump. “Right now, the United States has the lead in biotechnology, but we’re losing that lead, and we need to act now,” one insider told the Times.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here