Key facts
- The proposed rule would add biotechnology to an outbound-investment screening program.
- The move could reshape deal structures used by Chinese drugmakers to commercialize experimental medicines abroad.
The U.S. Treasury Department has proposed expanding outbound investment controls to China's biotechnology sector, potentially subjecting some joint drug-development ventures, offshore spinoffs and equity investments to national-security review. The proposed rule, issued Oct. 22 under the Comprehensive Outbound Investment National Security Act, or COINS Act, would add biotechnology to an outbound-investment screening program established for sensitive Chinese sectors. The move could reshape deal structures used by Chinese drugmakers to commercialize experimental medicines abroad.