{
  "docId": "019dd923-5ca1-7489-b638-229be117d58e",
  "docSlug": "415e33cb189c4261",
  "documentTitle": "Impact of the US BIOSECURE Act on Biopharmas, Contract Services and Investors",
  "authorId": "LEK",
  "authorName": "L.E.K.",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.778,
  "pageNumber": 4,
  "pageCount": 13,
  "prevPage": 3,
  "nextPage": 5,
  "slideType": "key_takeaways",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": null,
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "icon_grid"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b638-229be117d58e/4",
  "deckHref": "/decks/019dd923-5ca1-7489-b638-229be117d58e",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b638-229be117d58e.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b638-229be117d58e#slide-4",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Seventy-nine percent of respondents to the BIO survey conducted in May 2024 reported that they have contracts or products being supported by a Chinese CDMO.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-c7ca-701b-9cc5-3c047f3bc45f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.32,
        "x": 0.038,
        "y": 0.21
      },
      "kind": "list",
      "text": "Decline in overseas upstream demand for Chinese suppliers",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "33aca505-cba9-4d15-a974-9352e4ac3622",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.32,
        "x": 0.038,
        "y": 0.47
      },
      "kind": "list",
      "text": "Increasing opportunities for ex-China suppliers",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3ff78aff-6c4d-4139-a257-8ceb5e4cb012",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.32,
        "x": 0.038,
        "y": 0.625
      },
      "kind": "list",
      "text": "Challenges to pharma supply chain resilience, biotechs impacted to a larger extent",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "919a0e17-4590-4302-bff8-e42b1c47b4e0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "revenue: 65%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-c7ca-701b-9cc5-4036baa4e77e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.58,
        "x": 0.38,
        "y": 0.47
      },
      "kind": "paragraph",
      "text": "Ex-China CRO/CDMOs could potentially benefit from the bill as pharmaceutical companies seek to diversify their production from the mentioned companies, or even from China. Contract organizations such as Evotec and Fujifilm Diosynth have reportedly been receiving increasing engagement and exploratory inquires.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "22ef7990-aa40-4b69-90ae-1fd77a689c1e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.58,
        "x": 0.38,
        "y": 0.21
      },
      "kind": "paragraph",
      "text": "The current bill only explicitly listed five companies (WuXi Apptec, MGI, BGI, Complete Genomics and WuXi Biologics) and their affiliates. International demand accounts for a large portion of revenue for these companies (e.g., WuXi Apptec derived 65% of its 2023 revenue from US). This Act could potentially result in a remarkable decrease in upstream demand for the services provided by the named companies. In addition, this may affect more Chinese CRO/CDMOs in the future, given the uncertainty of the final legislation (e.g., which companies would be designated as biotechnology company of concern) and a halo effect beyond the mentioned companies.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4a1f8de5-97ba-4221-932a-47a1cb971c1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.58,
        "x": 0.38,
        "y": 0.625
      },
      "kind": "paragraph",
      "text": "Seventy-nine percent of respondents to the BIO survey conducted in May 2024 reported that they have contracts or products being supported by a Chinese CDMO. Changing vendors could be challenging, time consuming and costly, especially considering the validation processes and regulatory approvals required. Both US and non-US biopharmaceutical companies have begun to explore mitigation plans and seek backup supplies. While established biopharmas often have more robust and resilient supply chain and manufacturing footprints, biotechs are expected to be impacted to a larger extent by a potential decoupling.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9df85743-7a10-43b4-90a1-caaf27007760",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.25,
        "x": 0.038,
        "y": 0.9
      },
      "kind": "source-note",
      "text": "Source: Press release, L.E.K. research and analysis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ac680203-deeb-453e-ba7a-72076070d264",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.92,
        "x": 0.038,
        "y": 0.06
      },
      "kind": "title",
      "text": "The US BIOSECURE Act may prompt pharma companies to diversify their supply chain away from China, creating more opportunities for ex-China suppliers",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "69f60f68-436b-481e-9f4f-7468bc8c052d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "revenue",
      "numberRaw": "65%",
      "numberKind": "percent",
      "actionTitle": "The US BIOSECURE Act may prompt pharma companies to diversify their supply chain away from China, creating more opportunities for ex-China suppliers",
      "calloutText": "Seventy-nine percent of respondents to the BIO survey conducted in May 2024 reported that they have contracts or products being supported by a Chinese CDMO.",
      "numberScale": null,
      "numberValue": 65,
      "metricFamily": "revenue",
      "numberCurrency": null
    }
  ],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 5,
      "from": 4,
      "beatId": "62cb5ef7-b2aa-470b-9a14-de03e71a4028",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The document highlights the potential impact of the Act on biopharmas and contract services",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 10,
      "from": 4,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "04a5278d-7e5b-4b55-a8c7-0de1c16bfa6b",
      "evidence": "The document presents data on the potential impact of the Act on partnerships with Chinese companies",
      "position": 0,
      "objective": "Highlighting the consequences of not adapting to the US BIOSECURE Act",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}