BioCentury
ARTICLE | Politics, Policy & Law

CFIUS waiting game

How CFIUS expansion could adversely affect U.S. biotechs raising foreign capital

October 19, 2018 10:46 PM UTC

Biotech and its investors must wait to find out how much of the industry will be caught up in the CFIUS dragnet of foreign investment in American companies, but the U.S. Treasury has given itself the latitude for a broad-brush approach.

It could take six months to learn the scope of the new rules, and longer to understand how they will be applied, but the early view is that they could choke the flow of funds from non-U.S. VCs to early stage U.S. biotechs and limit the ability of Chinese companies to in-license biomedical innovations...