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2026-10-197 min read2

BIOSECURE Act's First 'Biotechnology Companies of Concern' List Due December 18 — What Korean Bio SMEs Relying on Chinese CDMOs and Sequencing Equipment Should Check Now

The first BIOSECURE Act list of "Biotechnology Companies of Concern" is due by December 18, 2026. Here is what Korean bio SMEs relying on Chinese CDMOs, CROs, and sequencing equipment should check now across outsourcing, equipment, and data supply chains.

KITIM Consulting Team

One Year After Signing, the BIOSECURE List Is Coming

The U.S. BIOSECURE Act was signed into law on December 18, 2025, as part of the FY2026 National Defense Authorization Act (NDAA). Its core mechanics come down to two points:

  • Federal agencies may not procure biotechnology equipment or services from "Biotechnology Companies of Concern" (BCOCs), contract with companies that use them, or award grants and loans to such companies
  • Federally funded R&D may not use BCOC equipment or services either
  • The Office of Management and Budget (OMB) must publish the first BCOC list by December 18, 2026, one year after enactment. As of mid-October, that is roughly two months away.

    Publication of the list does not trigger an overnight ban, though. The process runs in stages: list publication → OMB implementation guidance (180 days) → amendment of the Federal Acquisition Regulation (FAR) → enforcement of the amended rules. It is more accurate to see December as the start of a preparation window than as a hard cutoff.

    Who Ends Up on the List: Two Pathways

    The 1260H pathway

    Companies on the Department of Defense's "Chinese military companies" list (Section 1260H) that are involved in biotechnology equipment or services.

    Separate designation

    OMB can also designate companies under the statutory criteria, whether or not they appear on the 1260H list.

    The WuXi AppTec case

    WuXi AppTec was added to the 1260H list in June 2026, but a U.S. federal district court enjoined the designation on August 7. That does not remove the risk: law firm analyses note that the separate designation pathway remains open. Companies that have been named before, such as BGI and MGI, should be treated as candidates, not as confirmed listings.

    Three Ways This Reaches Korean Bio SMEs

  • U.S. federal procurement and grants: For companies pursuing projects linked to NIH, BARDA, or other federal funding, the track record of their contract manufacturers and equipment suppliers becomes a contract requirement
  • Partner due diligence: U.S. partners and licensees have started asking in due diligence questionnaires whether you use Chinese CDMOs, CROs, or sequencing services. This can become a deal condition even where the law does not apply to you directly
  • The opportunity side: Demand to shift outsourcing to Korean CDMOs and CROs is growing. The gains are likely to go mainly to large players, so SMEs should first prepare as *customers* of those services
  • A Supply Chain Checklist for Now

  • Map everything: CDMOs, preclinical and clinical CROs, genomic analysis and sequencing equipment and reagents, and data-processing vendors
  • Check ownership: Trace each supplier's parent, subsidiaries, and affiliates. A designation can extend to affiliated entities
  • Review contract terms: Confirm the remaining term of existing contracts and whether any grandfathering or transition period applies against the statute and OMB guidance. Don't assume either way until the guidance is final
  • Plan alternatives: Identify backup suppliers and estimate the time needed for tech transfer and validation. Some manufacturing processes can take years to move
  • Switching Costs and Government Support

    The heaviest burden in moving to a Korean CDMO is usually process transfer and comparability data. Depending on your regulatory stage, extra studies may be needed, so budget the time and cost early.

    It is also worth checking whether existing programs can help, such as bio materials, parts, and equipment localization support and the CDMO Regulatory Support Special Act (effective December 31, 2026). Confirm program names and eligibility against each year's official announcements. A ready-to-use supply chain attestation template for U.S. partner due diligence will also speed up your response considerably.

    How KITIM Can Help

  • Diagnosing your outsourcing, equipment, and data supply chain and grading the risks
  • Building a supplier transition roadmap and matching it to relevant government programs
  • Preparing documentation for U.S. partner due diligence
  • If you map your supply chain before the December list comes out, you can respond calmly to the guidance and FAR amendments that follow. If you're weighing how to respond to the BIOSECURE Act or how to fund a supplier transition, please contact the KITIM consulting team. We'll work with you on a review plan tailored to your outsourcing and equipment setup.

    BIOSECURE ActBiotechnology Companies of ConcernCDMOSupply Chain Due DiligenceUS ExportBio SMEOMB List
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