Following its recent about-face on the BIOSECURE Act, designed to combat China’s influence in the biopharma industry, lobbying group Biotechnology Innovation Organization in a realignment is laying off 30 employees.
Industry lobbying group Biotechnology Innovation Organization has kicked off a restructuring initiative that will see the termination of 30 employees, according to exclusive reporting by STAT News.
Citing four sources, STAT noted that the layoffs will affect senior leaders at Biotechnology Innovation Organization (BIO) including CSO Cartier Esham, Chief Policy Officer John Murphy and Chief Public Affairs and Marketing Officer Rich Masters, who confirmed to the publication that he would be leaving the group.
The layoffs were announced by BIO CEO John Crowley through an internal email, noting that the changes were meant to “better align our operations with our mission and the strategic priorities.” Crowley was named as BIO’s new head in December 2023 and assumed the post in March 2024.
The newly minted CEO added in his email that BIO had been too absorbed trying to “do everything,” that the organization has been “missing the opportunity to do many of the big things—those that are the most urgent, most important and that will have the greatest impact for our members, patients and persons worldwide,” STAT reported.
BioSpace reached out to BIO for comment but the lobbying group was not immediately available.
BIO’s restructuring come as growing tensions between the U.S. and China are potentially impacting the biopharma industry as the BIOSECURE Act advances in Congress. First introduced by Reps. Mike Gallagher (R-Wis.) and Raja Krishnamoorthi (D-Ill.) in January 2024, the bill is designed to “prevent the flow of taxpayer dollars to biotech entities of concern.”
The proposed legislation targets Chinese biotechs that are under the control of “foreign adversaries” including WuXi Apptec, Beijing Genomics Institute, Complete Genomics and MGI. According to Krishnamoorthi, these companies “amass and analyze large amounts” of genomic data, which adversarial governments can then use against the U.S.
In March 2024, BIO came under fire from Gallagher who asked U.S. Attorney General Merrick Garland to look into the lobbying group after it had allegedly “undertaken a recent advocacy campaign against the BIOSECURE Act.”
“BIO’s advocacy on behalf of WuXi Apptec—intended to protect the company’s access and commercial ties in the United States despite the risk to U.S. national security—is aligned with the interests of the CCP and the People’s Republic of China government,” Gallagher wrote.
Shortly after, BIO announced that it had parted ways with WuXi Apptec and reiterated its commitment to national security while voicing its support for the BIOSECURE Act.
Earlier this month, House lawmakers introduced a new draft of the BIOSECURE Act giving pharma companies until 2032 to sever ties with the Chinese biotech companies of concern. Crowley in a statement said the new version of the BIOSECURE Act bill “highlights a key vulnerability in our global supply chain and importantly provides a reasonable timeframe for companies to decouple their reliance on China-based biomanufacturing.”
Tristan Manalac is an independent science writer based in Metro Manila, Philippines. Reach out to him on LinkedIn or email him at tristan@tristanmanalac.com or tristan.manalac@biospace.com.
