The PR departments of Chinese CDMOs affected by the BIOSECURE Act and their U.S. partners must step up to ensure proposed legislation doesn’t squash innovation.
As the House Oversight and Accountability last week marked up the BIOSECURE Act that targets China-based biotech companies such as WuXi AppTec and now WuXi Biologics, I couldn’t help but feel a sense of déjà vu from watching Game of Thrones. With a key player switching sides and providing an unexpected assist at a critical moment, the saga of U.S.-China relations in the biopharma world is beginning to look like an episode based on the tumultuous fictional continents of Westeros and Essos.
In March 2024, WuXi AppTec separated from BIO after the industry trade association changed its position to support the proposed BIOSECURE Act. Recently, BIO surveyed its members to propose eight years as a “reasonable timeframe for companies to decouple from China-based biomanufacturing.” This timeframe was adopted in last week’s markup, setting a deadline of 2032 for U.S. biopharma companies to sever ties with Chinese contract development and manufacturing organizations (CDMOs) named in the act. This provides a much-needed reprieve for the Chinese companies named in this act and their U.S. customers should this act be signed into law.
A floor vote is expected in the next 30 days, and countermoves are already afoot. For example, two WuXi Biologics executives—manufacturing senior vice president William Aitchison and director of public relations Elizabeth Steele—have registered to lobby in Congress. They are not alone, with almost 20 biopharma and life sciences companies registered to lobby on this proposed bill, according to federal records.
Professional habits die hard, and as the lead consultant of a boutique PR agency who previously led international communications for a leading Chinese biotech company, I understand that these companies are seeking to strike a balance. If they draw too much attention, they risk being portrayed in an emotional and unpatriotic manner, but if they don’t speak up at all, the bill in its current form will impact their businesses in undesirable ways. With the BIOSECURE Act likely to be passed into law later this year, how can China-based CDMOs and the U.S. biopharma industry speak up to ensure the legislation doesn’t cripple their businesses while avoiding potentially costly mistakes?
Walking That Fine Line
Nearly 80 percent of U.S. biopharma companies have at least one contract or product with a China-based CDMO/CMO, according to BIO’s survey, which included 124 firms. The survey also revealed that these firms estimate it will take up to eight years to switch manufacturing partners to avoid potentially affecting patients—hence the eight-year decoupling grace period that these companies advocated for and won (for now). But what more can PR professionals do to sharpen their key messages to policymakers and other target audiences?
If we take a step back, the U.S. biopharma industry has played its PR cards in a low-key and astute manner to influence this proposed bill through an industry association. Given the tight window to influence the House, I imagine the industry is actively engaging BIO and other associations in the next month to seek additional federal funding required for decoupling. It might be helpful to draw a comparison with the CHIPS Act, which requires that U.S. companies pivot to domestic semiconductor manufacturing and provides $200 billion in funding over the next 10 years to support those companies currently relying on foreign partners.
As for WuXi AppTec and Wuxi Biologics, while this grace period represents a reprieve, they are intensifying communications efforts to reiterate that they do not pose a security risk to the United States or any other country while delivering innovative medicines that meet the highest regulatory and quality standards. By registering two additional members of its U.S. team to lobby in Congress, WuXi is continuing a full-court press to get its message out. WuXi AppTec has also added a prominent “U.S. Policy Brief” banner on its website, with easy access to its voluntary statements, investor announcements and a Q1 earnings presentation that included its commitment to data privacy, quality and compliance standards in response to accusations in this bill.
Meanwhile, China-based CDMOs not named in this act are also at risk of losing business. A BioCentury survey published in March indicated that 66% of U.S. respondents are unlikely to sign a new contract with a China-based CDMO. Given the potential sensitivity of this bill, these CDMOs are likely to adopt a low-key approach like the U.S. biopharma industry—not making themselves visible by lobbying in Congress, while forming internal cross-functional teams to manage ongoing communications with existing clients. These materials can include third-party audits, certifications and data points related to the companies’ key business areas. This proactive outreach, backed by specific examples, should help to assuage their U.S. biopharma clients’ potential concerns.
In addition, China-based CDMOs must prioritize international communications, further reassuring existing clients while also broadcasting more widely that these companies are committed to the global market during the long and potentially unpredictable legislative process. I advise focusing on industry publications and LinkedIn, where audiences are more likely to be professional and less emotional than on X, but however they do it, now is the time to break the communications radio silence that less-established CDMOs tend to adopt by default.
As a floor vote is expected soon, PR professionals should focus on strategic, well-calculated moves that could potentially influence outcomes without drawing too much attention or taking undue risk. A series of small yet thoughtful actions could better position the U.S. biopharma industry and China-based CDMOs on separate paths to sustainable growth while enhancing health outcomes. As Lord Varys from the Game of Thrones noted: “A small man can cast a large shadow.”
JX (Jaxon) Tan founded Momentum AI Communications, a boutique PR consultancy based in Singapore, with a mission to simplify science and spark engagement with strategic communications. He was previously based in China, where he led international communications for a leading biotech company. Reach him on LinkedIn.
