WuXi Bio denies U.S. lawmakers' allegations that its CEO served in military-affiliated institution

Asia Tech Wire (Jan 29) -- Chinese pharmaceutical company WuXi Biologics (Cayman) Inc (2269.HK) earlier Monday denied allegations by U.S. lawmakers that its CEO Zhisheng Chen previously served in a military-affiliated institution.

WuXi Bio said in a filing with the Hong Kong stock exchange that On January 26, 2024, it noted a draft bill introduced in the U.S. House of Representatives, which proposed to restrict U.S. executive agencies from contracting with certain biotechnology providers.

According to WuXi Bio, the draft bill, which is subject to further review and modification by U.S. legislators, contains a misleading description of the background of Dr. Zhisheng Chen, or Chris Chen, the Chief Executive Officer and Executive Director of the company.

U.S. Rep. Mike Gallagher, chairman of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, alleged in the draft bill that Chen "was previously an adjunct professor at the PLA's Academy of Military Medical Sciences."

The company stated that the academic title referred to in the draft bill was granted as a courtesy in 2013 after Chen did a one-time guest lecture, a common practice in Chinese universities.

"The company's understanding is that Dr. Chen had no other engagement with the institution prior to or since then. He has neither worked for the Academy of Military Medical Sciences or any military-affiliated
institution, nor has he received compensation from military-affiliated institutions," WuXi Bio said.

In addition, WuXi Bio said the company works to serve its customers worldwide and operates in accordance with the strictest standards of compliance and applicable laws and regulations in the regions in which it operates, and its global business operations remain as usual.

The pharmaceutical company continued to fall in Hong Kong on Monday and is now trading at HK$24.10 per share, down 1.83%.

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