[News Terms] JP Morgan Healthcare Opening... Focus on the Enactment of the 'Biological Security Act'

The world's largest pharmaceutical and biotech industry investment event, the 'JP Morgan Healthcare Conference 2025 (JPMHC 2025),' opened on the 13th (local time) in San Francisco, USA. This year marks the 43rd edition of the event, with over 550 companies and more than 8,000 attendees expected. At JPMHC, attendees can observe the latest research trends and business directions of major global pharmaceutical and biotech companies, including big pharma. Numerous Korean companies such as Samsung Biologics and Celltrion are also participating to share their annual business roadmaps and research and development (R&D) status. This year's event is particularly notable as it takes place about a week before the inauguration of U.S. President Donald Trump, leading to active discussions on the new administration's healthcare policies. Attention is especially focused on whether the previously failed 'Biosecure Act' will be reintroduced.

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The U.S. Biosecure Act was proposed in January last year to restrict the activities of Chinese biotech companies within the United States and to strengthen the country's biotech industry and national security. It is a measure to prevent the leakage of U.S. genetic data and biotech technology to the Chinese government. The act designated five major Chinese biotech companies?including Wuxi Biologics, the world's third-largest Contract Development and Manufacturing Organization (CDMO), BGI, MGI, Complete Genomics, and Wuxi AppTec?as 'entities of concern,' imposing regulations that limit transactions and cooperation with these companies. The bill received 306 votes in favor and 81 against in the U.S. House of Representatives in September last year and was expected to pass by the end of the year, but it failed as it was not included in the Senate's 'budget continuing resolution.'

However, with the second Trump administration strengthening sanctions against China, the possibility of reintroducing the bill is considered high. In January this year, the U.S. Department of Defense designated 134 companies in China as Chinese military companies operating in the U.S., imposing restrictions on their activities within the country. Among these, six companies are related to pharmaceuticals and biotech.

If the Biosecure Act is enacted, global pharmaceutical companies that have relied on Chinese firms are likely to shift their business partners to companies outside China. Consequently, some Chinese biotech companies are strengthening lobbying activities in the U.S. and considering scaling down their global operations in response. There is an expectation that domestic companies engaged in CDMO business will benefit indirectly. Experts emphasize measures for the Korean government and industry to prepare for this, such as 'advancing manufacturing capabilities and securing supply chains for materials, parts, and equipment that can realize this.' Since the U.S. has intensified its China containment policy in the biotech industry, mergers and acquisitions of CDMO companies in India, Japan, and Europe have become active, and production facilities are expanding, indicating a trend that requires proactive strategic preparation.

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