The US Senate recently approved the "Biosecurity Act," which may prohibit business dealings with Chinese biotechnology companies. This bill has also prompted US pharmaceutical companies to urgently seek pharmaceutical manufacturers outside of China. Bora Pharmaceuticals's chairman, Bobby Sheng, revealed that many US pharmaceutical companies have an urgent need to switch orders and are in contact with several US companies. This bill also presents a significant opportunity for Taiwan's biotechnology industry. 

Earlier this year, the US House of Representatives introduced a related bill that proposed to prohibit US government agencies from purchasing equipment and services from restricted biotechnology companies or signing, renewing, or expanding contracts with these companies. In addition, medical suppliers funded by the US federal government are also not allowed to collaborate with restricted enterprises. Market observers believe that this bill is targeting Chinese biotech companies. 

Although the bill has not yet taken effect, its progress still poses significant challenges to the biotech industry. Besides, large Chinese pharmaceutical companies like WuXi AppTec and WuXi Biologics derive a significant portion of their revenue from the US market. US pharmaceutical companies are actively seeking suppliers outside of China. 

As the largest CDMO pharmaceutical factory in Taiwan, Bora, Bobby Sheng mentioned, this bill not only restricts pharmaceutical factories but also affects government and military medication use. The US market is the biggest patron of the biotech industry. With the progress of the bill and the tightening of funds due to US inflation, the optimism of the Taiwanese capital market continues to surge, providing Taiwan's biotech industry with excellent opportunities in the next year or two. 

Bora has been acquiring frequently in recent years. Earlier this year, it acquired the US pharmaceutical company Upsher-Smith, jointly held by the Japanese pharmaceutical group Sawai Group Holdings Co., Ltd. and the Japanese trading company Sumitomo Group, for no more than $210 million, approximately NT$6.6 billion. This acquisition became Bora Group's first foothold in the US market. If the review by the Fair Trade Commission goes smoothly in March and April, CDMO business revenue will significantly increase.