Foreign Investment In US Biotech Gets Greater Gov't Scrutiny

Law360 (July 11, 2019, 1:17 PM EDT) -- In 2019, under the current administration, there is increasing scrutiny of foreign investment — particularly from China — in the U.S. biotech industry.[1] These efforts by the Trump administration began back in March 2018 with the publication of the Section 301 report by the United States Trade Representative.[2] Since then, the Committee on Foreign Investment in the United States has blocked or required mitigation in several transactions in the life sciences industry.

In early 2018, CFIUS required the divestiture of Biotest’s U.S. blood plasma products and biomedical testing operations (Bio Products Laboratory Ltd.) because of the potential access by the Chinese...

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