By P.R. Venkat


Chinese company WuXi AppTec said alleged findings by a U.S. draft bill against it were neither legitimate nor accurate and that its business wouldn't pose security risks for any country.

WuXi AppTech abides by laws and regulations in the countries in which it operates, including in both China and the U.S., the biotech company said late Friday.

The Chinese company's statement was in response to a proposed bill introduced by U.S. lawmakers barring federal contracts with Beijing Genomics Institute and some Chinese biotech entities due to alleged connections with the People's Liberation Army.

Shares of the WuXi family of companies tumbled on Friday on concerns the proposed bill would block the U.S. government from doing business with certain Chinese biotechnology companies.

The WuXi companies were among those named in the bill. Lawmakers said WuXi AppTec "presents a national security threat to the United States," naming examples of its connections with the military. It said WuXi Biologics' chief executive was once an adjunct professor at China's Academy of Military Medical Sciences.

In a separate filing Monday, WuXi Biologics said that the draft bill contained a misleading description of the background of its CEO, Zhisheng Chen.

"He has neither worked for the Academy of Military Medical Sciences or any military-affiliated institution nor has he received compensation from military-affiliated institutions," WuXi Biologics said.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

01-28-24 1916ET