Author: Northwest Choke.
On the morning of March 4th, the CXO sector was like a spring breeze, and the online and offline were full of happy air.
An English interpretation article circulated in various pharmaceutical groups earlier mentioned that Biden passed an order on February 28 to more strictly restrict BGI and related gene companies from doing business in the United States, and at the same time it means relaxing the legislative pressure on CDMO companies such as WuXi AppTec and WuXi Biologics.
Screenshot of the foreign interpretation article on the Internet).
According to this article, Biden seems to have helped WuXi solve the siege.
The U.S. Senate is scheduled to hold a hearing on March 6, two days later, to discuss the legislation of the so-called biosecurity bill. Recently, there has been a lot of camera movement on all sides, trying to exert influence at the last minute. According to the article, Biden is now pressing his hand on the side of gene-related companies, which is naturally good for WuXi Department.
This article, which called the United States "pressuring China and releasing Wumei", actually comes from a pharmaceutical industry called Biocentury**. This institution has a history of more than 30 years, and is quite influential in the industry, especially in China, and has held 10 medical and health summit forums in China, and many domestic biotech companies have received awards from this institution.
But in reality, Biden's executive order is not what Biocentury claims it is.
On February 28, the White House announced that Biden issued an executive order to strengthen the protection of sensitive personal data of Americans, and the content can be queried on the official website and will not be repeated. It mentions the protection of "biometric data and personal health data", but it is not actually combined with gene-related businesses, nor does it specifically refer to BGI.
From the official website of the White House).
If you understand the true intent of the so-called "Biosecurity Act" in the United States, you will know that "biodata protection" is the fundamental logic of American legislation. It is certainly possible for genetic testing-related companies such as BGI to have direct access to these data;Drug development institutions are equally likely to have access to this data.
Therefore, the bill heard on March 6 will mention that the procurement of biotechnology equipment or services by "companies of concern" will be stopped to prevent the leakage of personal data in the United States.
This so-called bill has the words "high-sounding" written on the face to prevent data leakage. The latest order issued by the White House further strengthens the expectation of legislation. The logic is consistentThere is no intention of putting medicine medicine at all.
In the past two days, many ** in the United States have interpreted the White House order, and they have not interpreted the meaning of relaxing the WuXi system. Only this article by BioCentury has been brought out to inspire some people.
In the domestic capital market, the purpose of creating an atmosphere of "abandoning BGI and supporting Wuxi" is obvious. In the past two months of the "Biosecurity Act" incident, BGI's presence has not been strong. Although it was also named by the U.S., the stock price of BGI was barely harmed. WuXi is a heavy stock of many institutions, which has fluctuated greatly recently, and is in urgent need of stable expectations.
In fact, the BGI department has been targeted by the United States since 2021, and it has been fighting wits and courage for several years. From the perspective of revenue structure, BGI's revenue in the Americas will be nearly halved in 2022, and it will continue to be the same in 2023, with the revenue of the U.S. market falling to only about 3% of total revenue.
Even if the United States closes its door to China from now on, the damage caused will not be very large. BGI's basic plate is domestic prenatal screening, and the birth rate of dragon babies may increase in 2024, and the risk of the disappearance of the new crown business has been released. For BGI, the bill is just a floating cloud.
But the difference is that WuXi AppTec can't let go of the U.S. market. If you have listened to the briefing on the day of the WuXi AppTec flash crash on January 26, you may remember that the company's executives only spoke for less than 10 minutes before rushing to participate in the "English communication and exchange".
Tens of billions of businesses are thrown on the other side of the ocean, and Wuxi Apptec must have its own lobbying channels there, and it cannot be the imaginary lamb to the slaughter.
These two days are the time of wrestling, and it is normal for WuXi to fluctuate in its stock price, but it is too early to say that it is "good". March 6 is an important time node, and there will be many more nodes to follow when this bill is finally formed or vetoed.
Judging by the statements of the White House, things are going in the direction we least want to see.