SomaGen is showing strong performance. This is interpreted as a result of the passage of the Biosecurity Act in the U.S. House of Representatives, aimed at sanctioning the Chinese bioindustry.
As of 2:01 PM on the 10th, SomaGen is trading at 4,535 KRW, up 8.23% compared to the previous day.
The previous day, the U.S. House held a plenary session and passed the Biosecurity Act with 306 votes in favor and 81 against. After passing the Senate plenary session and being signed by President Joe Biden, it is expected to be finalized as law. The bill had already passed both the House and Senate committees, and was designated as a "suspension of rules bill" in the House, meaning it passed with overwhelming bipartisan support from both Democrats and Republicans, so it is highly likely that the law will be enacted within this year.
The Biosecurity Act is a law being promoted to suppress the activities of biotechnology companies hostile to the U.S. related to the U.S., with the purpose of preventing the leakage of genetic information of Americans. If the law is enacted, Chinese companies specified in the bill, such as Beijing Genomics Institute (BGI, Hwada), its subsidiary Hwada Zizhao (MGI), and Wuxi AppTec, will be prohibited from transactions with U.S. administrative agencies or companies supported by the U.S. government.
Meanwhile, SomaGen is a company that provides comprehensive genome analysis service solutions to universities and related institutions across the United States. Earlier this year, it secured a contract worth $21.6 million (28 billion KRW) over three years until 2026 with the Michael J. Fox Foundation for whole genome sequencing (WGS), and it is reported that the volume of genome analysis orders has rapidly increased since the proposal of the U.S. Biosecurity Act.
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