CFIUS Increasingly Focusing on Biotech Sector, Law Firm Warns
Companies operating in the biotechnology industry should be increasingly “mindful” of investment filing requirements, especially as the U.S. has “repeatedly emphasized the linkages” between the biotech space and national security, Hogan Lovells said in a December client alert. The law firm specifically pointed to the Biden administration's September executive order on U.S. investment review priorities (see 2209150053), which sent “yet another signal to the biotech sector and its prospective foreign investors that the U.S. Government considers biotech to be an area of critical importance for U.S. national security.”
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The firm said the Committee on Foreign Investment in the U.S. may examine “every” foreign investment in the U.S. biotech sector to determine if it triggers a mandatory filing. It also said biotech companies should consider conducting a “critical technologies and sensitive personal data assessment” to “increase the efficiency of responding to investor diligence questions and revising transaction documents.”