(Yicai) March 7 -- WuXi AppTec’s stock price fell further after the US Senate's homeland security committee approved a bill that targets Chinese biotech companies on the alleged grounds of national security.

WuXi AppTec [SHA: 603259] fell by its 10 percent daily trading limit in Shanghai today to end at CNY52.86 (USD7.34) a share, bringing the stock’s retreat to 27 percent so far this year. Its Hong Kong-listed shares [HKG: 2359] sank almost 21 percent to HKD45 (USD5.79), extending their year-to-date decline to 43 percent.

The Biosecure Act, which would help prevent foreign adversaries from stealing sensitive US genetic data and personal health information, was advanced by the Senate Homeland Security and Governmental Affairs Committee yesterday. The proposed legislation will now go to the Senate for consideration, the panel’s website said.

The bill would ban certain Chinese biotech firms from getting US government contracts. Senator Gary C. Peters introduced it on Dec. 20, and it gained bipartisan support from lawmakers on Jan. 25. The bill puts WuXi AppTec on a list of “biotechnology companies of concern.”

Following reports on Jan. 26 about the bill, WuXi AppTec's shares slumped 16.4 percent, while WuXi Biologics [HKG: 2269], which was spun off from Wuxi AppTec several years ago, dived 18.2 percent. 

The homeland security committee voted 11 to one for the bill, Reuters reported. Senators were "taking advantage of anger towards China to do sort of parochial protectionist things for their particular state," the report cited Republican Senator Rand Paul, the sole 'no' vote, as saying.

Wuxi AppTec has repeatedly stated that it does not pose a national security risk to any country and should not be listed as a "biotechnology company of concern" in the bill. The company does not collect genetic data and will continue to engage in dialogue with stakeholders in the legislative process over the coming months, it noted today, adding that there could still be changes to the bill.

According to the US legislative process, the bill still needs to be voted on and passed by both the Senate and the House of Representatives and signed by President Joe Biden before it can become law.

Editors: Dou Shicong, Martin Kadiev