Overview
- The revised law defines “biotechnology companies of concern” by reference to the Department of Defense 1260H list rather than naming specific firms.
- Federal agencies and recipients of federal grants or loans will be barred from using equipment or services tied to companies on the 1260H list.
- Compliance windows vary, with some existing contracts receiving roughly five years to wind down and certain situations requiring changes in as little as 60 days.
- The text adds waivers, public‑health emergency carve‑outs, safe harbors for legacy products, and protections to avoid unintended effects on Medicaid and Veterans Affairs drug pricing.
- Drugmakers are preparing to diversify supply chains away from Chinese partners, and India’s Sai Life Sciences says it plans to expand capacity from about 700 KL to roughly 1,150 KL by the end of fiscal 2027.