Biotechsamy
Oct 22, 10:23 PM
$LEGN Breaking news: Draft regulations from the Treasury Department would put broad limits on what types of drug and biotech assets that US companies and venture capitalists could invest in and make deals for.
The proposal released Thursday evening would limit investment in a wide range of Chinese biopharma technologies, including “…, cell and gene therapies, ….”.
It’s a surprising reversal from a less restrictive approach that was expected. While the rules don’t limit China dealmaking per se, the proposed limits are so broad that they would be likely to sharply curtail the dealmaking.
“I know there has been speculation as to whether this rule is going to address pharmaceutical licensing deals, and the rule does not speak to that,” a Treasury official told reporters earlier Thursday.
The rules spark a 45-day public comment period before they are eventually finalized, which will attract more industry explanations for why investments in drug compounds should be preserved.
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