Japan’s AGC Biologics and contract manufacturing specialist BioConnection are teaming up to offer drug development and production services to the biopharma industry and to provide an alternative to drugmakers that may be affected by the BIOSECURE Act in the U.S.
With facilities in Japan, Europe and the U.S., the two companies tout themselves as being a viable option for companies potentially affected by legislation working its way through Congress that would bar them from working with Chinese CDMO giants.
The BIOSECURE Act was introduced by a bipartisan group of lawmakers in the House in January with the aim of blocking certain “biotechnology companies of concern” from accessing federal funding through their biopharma customers. To secure positions on Medicare and Medicaid, drugmakers would need to cut ties with the targeted Chinese firms, including WuXi AppTec and WuXi Biologics.
The bill recently passed by an overwhelming vote at the House Oversight Committee, with reports indicating it may come to a floor vote by the end of May. The Senate Homeland Security Committee voted in March to advance a counterpart bill to the Senate floor.
“AGC Biologics is especially well-positioned to support the needs of developers that may be impacted by this legislation, as it is one of the largest CDMO networks in the world offering single-use bioreactor technology,” the company said in a May 22 press release.
Netherlands-based BioConnection specializes in aseptic filling of vials and syringes for both clinical and commercial production of either liquid or freeze-dried products.
Weathering a post-pandemic slowdown in the CDMO industry, AGC Biologics recently revealed plans to trim its workforce. Earlier this month, the company announced it would lay off just under 4% of its global workforce, with initial cuts coming from its Seattle and Colorado facilities.
The company employs more than 2,500 people worldwide, so the cuts are expected to affect about 100 workers.