U.S. President Joe Biden on Monday signed a new executive order launching a national biotechnology and biomanufacturing program to ensure technologies that help end cancer are made in the U.S., a move that highlights U.S.-China tech The war has spread to the biotechnology industry.
Biden has a new target following his administration passed the chip bill last month, injecting more than $50 billion in government subsidies for U.S. semiconductor production.
Biden will speak at the John F. Kennedy Presidential Library and Museum on Monday, outlining the latest progress in the U.S. government’s push for the Cancer Moonshot and signing a new executive Order to promote a national biotechnology and biomanufacturing program.
“Former U.S. President Kennedy set a goal of winning the space race with Russia and advancing science and technology for all of humanity, establishing a national goal that would bring the American people together,” Biden said in Monday’s speech. He did it. In our current time, on the 60th anniversary of Kennedy blowing the horn, America is facing another inflection point where we can unite and move forward with hope and optimism. I believe we can usher in the same National goals, ending cancer, and even curing it once and for all.”
Biden signed an executive order on Monday to develop the U.S. biotech industry and reduce reliance on China, particularly in the pharmaceutical sector.
The White House did not provide any specific details on the funding available, where it will come from or how it will be distributed. Further details are expected at a White House summit on Wednesday.
The executive order would allow the federal government to provide direct funding for the use of microorganisms and other biologically derived resources following U.S. officials revealed that China is aggressively investing in the biotechnology industry, which poses risks to U.S. leadership and competitiveness. to make new foods, fertilizers and seeds, as well as to develop mRNA vaccines and improve the efficiency of mining operations.
Affected by the news, the iShares Biotech ETF (IBB) rose 0.18% on Monday, but perhaps specific details have not been released, the market reaction to some potential beneficiaries was muted, Corteva (CTVA-US) fell 0.66%, Renewable Energy Group Corporation (REGI-US) flat.
The U.S. remains the largest player in the global biotech industry, but is currently in a slump.
Venture capital in the U.S. biotech industry fell 46% in the first quarter of this year compared to the same period last year following record-breaking fundraising and new IPO deals for biotech startups in 2021, according to GlobalData, largely due to the current economic and geopolitical uncertainty sex, while biotech financing is largely stagnant in 2022.
At the same time, China’s biotechnology industry is booming. A recent report by Nova One Advisor shows that the Asia-Pacific region is expected to achieve the fastest growth in the biotechnology industry in the next decade, with India and China having the strongest growth momentum. It is estimated that China’s pharmaceutical industry will overtake the United States as the world’s largest pharmaceutical producer in less than 10 years.
“The United States does have the world’s best biotech innovation industry, but it is at risk of falling behind,” the White House official said.
