Shares of Divi’s Laboratories declined by nearly 3% following the US Biosecure Act update, which would have blacklisted several Chinese-linked biotechnology firms from new federally funded research and contracts, was excluded from a key defense bill. This decision came as a significant victory for Chinese biotech firms, some of which had faced potential restrictions under the act.
The Biosecure Act, which had previously gained substantial support in both the US House and Senate, aimed to limit the involvement of specific Chinese biotechnology firms in US government-funded research. However, the exclusion of the legislation from the defense bill followed objections from senior House Democrats, who voiced concerns about naming specific companies in the bill.
The exclusion of the act comes as a surprise to many, particularly to firms in the biotech and pharmaceutical sectors, as it shifts the political landscape around US-China relations and the involvement of Chinese firms in biotech research.
Stock Performance:
- 5 Days: -2.06%
- 1 Month: +2.93%
- 6 Months: +35.16%
- Year to Date: +56.04%
- 1 Year: +63.72%
- 5 Years: +237.61%
- All Time: +75.05%
As of December 9, 2024, Divi’s Laboratories shares were down nearly 3%, reflecting the market’s reaction to the broader implications of this legislative development.
