Pandemic Puts National Security Focus on Biotech, Health Sectors

Foreign investment in U.S. biotechnology and pharmaceutical companies is expected to get tougher scrutiny following the new coronavirus pandemic.

Recently enacted rules allow The Committee on Foreign Investment in the United States (CFIUS) to increase its already close reviews of certain cross-border biotechnology deals, giving it additional authority to assess minority investments in companies handling what’s considered to be critical technology, infrastructure, and sensitive personal data.

The impact of Covid-19 could mean investments and transactions with the potential to affect the U.S. response to future outbreaks, including extended supply chains for medicines and equipment, may receive more intense oversight, attorneys ...