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<Research>JPM on Reports US May Tighten Grip on CN Innovative Drug Int'l Licensing: Near-Term Implementation Unlikely, Drugmakers Will Need to Do More Global Clinical Trials
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JPMorgan has released a report on China's pharma sector highlighting its concern over the rising geopolitical risks against the international licensing deals for Chinese innovative drugs. According to US media, Washington is drafting legislation aimed at boosting domestic production of critical medicines, while offering tax incentives to companies that bring manufacturing back to the US. The draft is said to require that any acquisition of rights to Chinese experimental drugs by American firms be reviewed by the Committee on Foreign Investment in the US (CFIUS). It will also impose stricter standards on clinical trial data from China, mandate tougher FDA reviews, and levy higher regulatory fees. That being said, it remains uncertain whether or when such an executive order will be issued, as the draft has already triggered intense lobbying from opposing camps. Considering reports that US President Donald Trump may meet with Chinese President Xi Jinping during his October visit to South Korea, JPMorgan sees a slim possibility of the order being rolled out in the near term. However, the broker stressed that Chinese biotech and pharma companies, regardless of size, will need to conduct more global clinical trials to meet US regulatory requirements. AAStocks Financial News |
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