If Congress starts reviewing licensing deals, diligence gets a documentation problem
The bill would require more disclosures on Chinese biotech transactions and expand review of deals that could affect U.S. national security.
- Congress is weighing legislation to amend the COINS Act by adding biotechnology as a covered sector, which would expand federal review of cross-border licensing deals with Chinese companies.
- Cross-Border licensing deals between U.S. and Chinese biopharma companies grew by $131 billion from 2020 to 2025, prompting lawmakers to propose stricter oversight of transactions previously outside national security review frameworks.
- Kivo identified redacted licensing diligence files revealing deal structures, while reporting cites missing records and stressed processes that have raised regulatory concerns about transaction documentation completeness.
- Industry trade groups and corporate counsel plan to challenge broad congressional subpoenas, as firms prepare legal pushback that could increase compliance costs for licensing counterparties immediately.
- Existing security review frameworks allow committees to leverage established protocols rather than drafting new discovery rules, positioning Treasury to scrutinize sensitive commercial biotechnology deals under a one-year implementation timeline.
60 Articles
60 Articles
If Congress starts reviewing licensing deals, diligence gets a documentation problem - The Mexico Ledger
Historically, national security reviews were not a topic of conversation in biotech licensing deals. Things are changing.The bipartisan Biotech Investment National Security Act of 2026 would amend the COINS Act by adding biotechnology as a covered sector, expand reviewable transactions to include licensing deals, and give the U.S. Treasury a year to write rules for implementation. This change follows two recent multi-billion-dollar licensing dea…
If Congress starts reviewing licensing deals, diligence gets a documentation problem
Kivo reports that the Biotech Investment National Security Act of 2026 will expand U.S. licensing deal reviews to include biotechnology, creating new documentation requirements.
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