SNAPSHOT

U.S.–China biotech deals faces national security reviews if new House bill passes

A bipartisan proposal would add biotechnology to the COINS Act, requiring government review of certain U.S. investments, licensing agreements, joint ventures, and equity stakes involving Chinese biotech companies.

Why it matters: The bill reflects growing concerns that China’s rapid rise in drug development could weaken U.S. competitiveness, transfer sensitive biotechnology expertise overseas, and create future national security risks. If enacted, it could reshape how U.S. pharmaceutical companies collaborate with Chinese partners.

Backstory: China has become an increasingly attractive source of new medicines due to lower development costs and greater regulatory flexibility. According to the bill’s sponsors, cross-border biotech licensing deals grew from less than $5 billion in 2020 to $136 billion in 2025. Policymakers have increasingly debated whether stronger outbound investment controls are needed.

Big picture: The proposal highlights a broader U.S.–China policy shift from economic integration toward strategic competition in advanced industries. Biotechnology is emerging as a new battleground alongside semiconductors, artificial intelligence, and other critical technologies.

Zoom in: The legislation was introduced shortly after major partnerships involving Pfizer and Bristol Myers Squibb. Bristol Myers signed a collaboration with Hengrui Pharma worth up to $15.2 billion. Pfizer announced a deal with Innovent Biologics potentially exceeding $10 billion. The bill excludes agricultural biotechnology, industrial fermentation, and basic academic research from its scope.

What’s next: Passage may be difficult. Congress has enacted relatively few bills recently, and lawmakers are increasingly focused on upcoming elections. Supporters may need to attach the measure to a larger spending package to improve its chances. Critics argue the legislation could backfire and contend that biotechnology thrives on global collaboration and shared scientific knowledge.

SNIPPETS

What’s happening in biotech today?

⚠️ Safety storm: ADC Therapeutics reported that its Phase III LOTIS-5 trial met its primary endpoint, showing that Zynlonta (loncastuximab tesirine) plus rituximab significantly improved progression-free survival and response rates compared with R-GemOx in 440 patients with relapsed or refractory diffuse large B-cell lymphoma. The combination reduced the risk of disease progression or death by 27%, with higher overall and complete response rates and longer-lasting remissions. However, the trial showed no overall survival benefit and raised major safety concerns, including a substantially higher rate of serious adverse events and nearly three times as many treatment-related deaths (13.2% versus 4.6%). While the results may support regulatory submissions and potential expansion into earlier treatment settings, investors reacted negatively, sending ADC Therapeutics’ shares down about 57%.

🤝 AI alliance: Alnylam Pharmaceuticals has entered a collaboration with AI-focused biotechnology company Inceptive Nucleics to accelerate the discovery of new RNA-based therapies, in a deal that could be worth up to $2 billion. The agreement includes $30 million in upfront cash and equity, with additional payments tied to development, regulatory, and commercial milestones. Alnylam plans to use Inceptive’s AI tools to identify the most promising RNA molecules, improve research efficiency, and support its long-term “Alnylam 2030” growth strategy.

💸 Series B: Ona Therapeutics has raised $86.6 million in a Series B financing round to advance its antibody-drug conjugate (ADC) pipeline, including lead candidate ONA-255, a first-in-class oncology ADC that is approaching clinical testing. Although the target of ONA-255 remains undisclosed, the company is positioning it alongside ONA-389 as part of a broader effort to develop next-generation cancer therapies using its target discovery platform. Founded in Barcelona in 2019 as a spin-off from IRB Barcelona and ICREA, Ona originally focused on metastasis biology and therapies targeting cancer spread, including its CD36-targeting antibody ONA-01.

🧬 CAR-T boost: Legend Biotech reported encouraging early clinical results for its experimental “in vivo” CAR-T therapy, LB2501, in patients with relapsed or refractory lymphoma, driving a 30% increase in its share price. Unlike traditional “ex vivo” cell therapies that require immune cells to be collected and engineered outside the body, LB2501 uses a modified virus to reprogram immune cells directly in patients. In a first-in-human trial in China, all six patients treated at the higher dose responded to therapy, with five achieving complete remission and no detectable lymphoma lesions. The treatment showed a manageable safety profile, with no severe neurological side effects observed. Analysts view the results as promising for the emerging in vivo cell therapy field, which could offer logistical and commercial advantages over existing personalized treatments such as Novartis’ Kymriah.

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