Editors note: This article has been updated on 28 January 2026 to reflect the provisions as enacted in the National Defense Authorization Act for Fiscal Year 2026, which differ in certain respects from the original BIOSECURE Act (H.R. 8333) as passed by the House of Representatives.
The Act prohibits US federal agencies from contracting with companies that use biotechnology equipment or services from designated "biotechnology companies of concern."
This extends beyond direct government contracts, it captures the entire supply chain, including grant and loan recipients.
Rather than naming specific companies (in comparison to the proposed BIOSECURE ACT H.R.8333), the legislation references the Department of Defense's "1260H list" of Chinese military companies operating in the United States. Additional companies may be designated through a formal review process if they meet specified criteria relating to foreign adversary control and national security risk. Biopharma companies should verify whether key suppliers appear on the current 1260H list or are designated through subsequent regulatory action.
This legislation reflects a broader trend towards dissecting biotechnology supply chains through a national security lens. Whether or not your organisation currently engages with US government contracts, the direction of travel is clear. Commercial partners and investors will increasingly expect visibility into supply chain provenance and data handling practices.
For companies with exposure to the companies on the 1260H list, the transition period offers an opportunity to diversify partnerships and de-risk operations. For those without direct exposure, the lesson is equally valuable: supply chain resilience and robust data governance are no longer merely operational considerations.
PwC’s Legal-Regulatory Business Enablement & Strategy team is available to assist you in de-risking and optimising your supply chain. We are committed to help you build reliable and sustainable partnerships to ensure uninterrupted access to high-quality, safe medicines for your patients.
Dr Sandra Ragaz-Fumia
Partner, Leader Pharma & Life Science – International Indirect Tax & ReguIatory, PwC Switzerland
+41 79 792 72 98
Contact
Director, Pharma & Life Sciences – International Indirect Tax & Regulatory, PwC Switzerland
+41 58 792 93 08
Contact
Dominik Hofstetter
Manager, Pharma Legal-Regulatory Business Enablement & Strategy, PwC Switzerland
+41 79 199 45 14
Contact