STAT+: Biopharma industry at odds over impact of Treasury’s new China rule

An exemption for licensing is at the heart of disagreements over whether restrictions matter BRENDAN SMIALOWSKI/AFP via Getty Images John writes about the politics of health care, and he is the author of the twice-weekly D.C. Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07.Damian covers the global drug industry and contributes to STAT’s industry-leading events. You can reach Damian on Signal at damiangarde.67. WASHINGTON — Ever since the Treasury Department proposed to limit U.S. investment in the Chinese biotech industry last week, players across the U.S. are arguing over the significance of the restrictions. The main debate to date had been over whether restrictions are needed. Is it better to play offense by boosting domestic research and development, or to play defense by trying to prevent Chinese biotechs from catching up? Is it even possible to slow China’s advance? Now, the debate has turned to the impact of the proposed rule. It’s more aggressive than some anticipated, but a Treasury official said licensing deals are exempt. That exemption is at the heart of disagreements over the effects of the proposal. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus daily coverage and analysis of the biotech sector — by subscribing to STAT+. Already have an account? Log in View All Plans To read the rest of this story subscribe to STAT+. Subscribe John writes about the politics of health care, and he is the author of the twice-weekly D.C. Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07. Reporter at Large, Live and Feature Journalism Damian covers the global drug industry and contributes to STAT’s industry-leading events. You can reach Damian on Signal at damiangarde.67.