Trade war, CFIUS interventions force a shift in strategy at Fosun — signaling some big potential problems for US biotechs
Chinese biotech investors are getting caught in a big squeeze as President Donald Trump raises the stakes in an ongoing trade war with the Asian powerhouse. And the fallout could have major implications for a biotech industry that has become increasingly attuned to China’s ambitious group of deep-pocketed investors.
Kevin Xie, who manages Fosun International’s US strategy, tells Bloomberg that they’re turning greater attention to emerging markets as trade relations with the US grow increasingly frayed. Blacklisting Huawei Technologies has played a direct role in that shift.
“Trade friction has impacted our investments in the U.S., but not to the extent of stopping all deals,” Xie told the business news service.
Their reassessment comes as the Committee on Foreign Investment in the United States (CFIUS), at Trump’s direction, has been scrutinizing the national security aspect of the takeover of US companies, extending beyond M&A and into the investment scene.
As Bloomberg notes, China’s investors have been pouring money into the US biotech industry, to the tune of $2.8 billion last year — up from $703 million the year before. And Fosun has been a big player for US biotechs to partner with. Kite, for example, joined hands with Fosun to create Fosun Pharma Kite Biotechnology to develop, manufacture and commercialize its CAR-T in China.
The new strains on the finance side have been matched with a new focus on the ties that exist between scientists in the US of Chinese origin and others in the industry in China. MD Anderson ousted 3 of its Asian faculty members, with Emory axing two more just days ago.