US proposes limits on overseas biotech investments

The US Treasury proposed adding biotechnology to its controls on American investment abroad on Thursday. The proposal targets certain deals involving companies in countries of concern, including China. Depending on the technology and transaction, a covered deal could require notice to Treasury or be prohibited.

The government says the aim is to keep sensitive technology from aiding foreign militaries. Biotech companies and investors will need to study the exact boundaries. This is not a blanket ban on all drug research, and the proposal does not itself change access to medicines.

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Which biotech deals will the final rule actually cover? Treasury is asking for comments before it writes the final version, so the scope and start date may change.