BioCentury
ARTICLE | Regulation

Biotech may have side-stepped CFIUS’ worst case scenario  

The inability to define emerging and foundational technology means most foreign investments in U.S. biotechs will avoid scrutiny

August 28, 2020 7:58 PM UTC

So far, biotech has avoided the nightmare scenario in which almost any private company seeking foreign investment would come under government scrutiny. Recently proposed legislation could inject additional uncertainty, however, by changing who gets to decide which technologies are critical to national security.

The expansion of the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) in 2018 raised alarm across industries as it gave CFIUS power to investigate many more companies than it had in the past. In addition to majority ownership positions taken by foreign companies or investors, minority investments also came under the committee’s jurisdiction, particularly when such investments give the foreign entity access to information about technologies deemed critical. ...