As the United States prepares to announce the initial regulatory targets of the Biosecurity Act this week, market analysts suggest that the inclusion of major Chinese contract development and manufacturing organizations (CDMOs) could significantly clear the path for South Korean firms to secure new business. This geopolitical shift is being mirrored in Europe, where the European Union (EU) has recently moved to restrict Chinese involvement in key global research initiatives, prompting calls for Korean biotech firms to aggressively pursue these newly opened opportunities.
Potential Sanctions on Chinese CDMOs Offer Upside for Samsung Biologics
According to the Korea Bio Association, both the U.S. and EU have simultaneously intensified their regulatory pressure on China over the past week. A notable incident occurred on February 13, when the U.S. Department of Defense briefly posted—and then deleted—a list of Chinese military-linked companies. The list reportedly included e-commerce giant Alibaba, electric vehicle maker BYD, and Wuxi AppTec, a top-tier global CDMO.
Foreign media outlets, including the Financial Times, expect the official list to be finalized and released this week. Inclusion on this list is a strong precursor for being designated as a sanctioned entity under the Biosecurity Act passed last year. Wuxi AppTec, which currently ranks fifth globally in CDMO revenue, is considered a primary candidate for these sanctions. Should Wuxi be restricted, industry eyes are turning toward Samsung Biologics (currently ranked fourth) and other domestic players like Lotte Biologics to fill the vacuum.
"The Biosecurity Act has undoubtedly increased the probability of K-CDMOs securing contracts with U.S.-based global pharmaceutical firms," an industry official noted. "However, while the outlook is positive, we must remain cautious as competition from non-Chinese global rivals remains fierce."
'Horizon Europe' Exclusions Open Doors for K-Biotech
Simultaneously, the European Commission has moved to exclude Chinese entities from the bio-research sector of "Horizon Europe," the EU’s flagship collaborative research program. With a budget of €95.5 billion through 2027, the project covers critical fields such as semiconductors, AI, and biotechnology.
The exclusion stems from heightened concerns regarding intellectual property (IP) theft. While China may still participate in climate and agricultural research, its removal from the biotech subsidies creates a significant opening for South Korean institutions. South Korea became the first Asian country to join Horizon Europe as an associate member in 2024 and is already participating in several projects, including infectious disease diagnostics and measurement standards.
The European Commission has emphasized that forming multi-institutional consortia is the most effective way to secure these high-value projects. Experts suggest that for K-Biotech firms, particularly those in the fields of diagnostic platforms and future treatments, now is the ideal time to form strategic alliances to capture these international contracts.
