Pamicell Anticipates Benefits from US Biosecurity Law for Gene Therapy Raw Materials

Pharmicell recently forecasted that it would benefit from the 'Biosecurity Act' recently approved by the U.S. Senate.

The 'Biosecurity Act' is a bill targeting major Chinese bio companies operating in the United States, restricting transactions with Chinese bio companies. The bill was proposed amid the U.S.-China bio hegemony conflict, and if enacted, foreign involvement by specific companies in critical sectors such as the bio industry within the U.S. will be strictly controlled.

Wuxi STA of the Wuxi Group, included in the restricted companies list, is advancing its oligonucleotide business, and global companies in the oligonucleotide therapeutic development stage have entrusted oligo production to Wuxi STA. Due to the passage of this bill, there is a high possibility that these volumes will be redirected domestically.

Pharmicell manufactures nucleosides, essential raw materials in the oligonucleotide synthesis process, and as a major supplier in this field, it is recognized as the biggest beneficiary.

Among companies with oligo production capabilities, four have received U.S. cGMP (FDA Current Good Manufacturing Practice) certification: Japan's Nitto Denko Avecia, U.S.'s Agilent, domestic company ST Pharm, and Wuxi STA. Except for Wuxi STA, these companies belong to Pharmicell's nucleoside supply chain.

An industry insider said, "Following the proposal of the U.S. bill, an increase in volume is expected among Pharmicell's supply chain companies," adding, "Pharmicell, which manufactures essential components for mRNA vaccines and oligonucleotide therapeutics, is also likely to gain indirect benefits."

Pharmicell counts global pharmaceutical companies such as Thermo Fisher Scientific in the U.S., Merck in Europe, and domestic ST Pharm among its major nucleoside customers.