WuXi AppTec Says It Left Washington Lobbying Group Voluntarily

By Sherry Qin

WuXi AppTec says it voluntarily left a high-profile biotechnology lobbying group as U.S. legislative efforts were "maligning" its membership in the Washington-based association.

A letter sent by the company to the Biotechnology Innovation Organization's president and CEO, John Crowley, dated March 12, said that "effective immediately, WuXi AppTec, along with our subsidiary WuXi Clinical, will end our associate membership in BIO." The letter was seen Friday by The Wall Street Journal.

WuXi AppTec and its affiliates have been the target of two U.S. bills that seek to prohibit U.S. federal agencies from contracting with or granting funds to certain Chinese biotech companies on the grounds that the companies could threaten national security through actions such as collecting sensitive biometrics information or collaborating with the Chinese military.

WuXi AppTec reiterated in the letter that the U.S. legislative efforts were "preemptively and unfairly targeting the company without due process, a transparent review of the facts, or consideration of their impact on U.S. leadership in biotechnology innovation and patient care."

BIO, an influential trade association whose members include Eli Lilly, Merck, Johnson & Johnson and hundreds of other companies had said Wednesday that it is cutting ties with WuXi AppTec as part of measures to aid U.S. national-security efforts.

The trade group has since updated its statement on Thursday, saying that "WuXi AppTec proactively ended its membership in BIO."

WuXi AppTec's Shanghai-listed shares last closed 5.7% lower while its Hong Kong-listed shares were down 12%.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

March 14, 2024 21:58 ET (01:58 GMT)

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