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The Trump administration on Wednesday issued new rules that will put some foreign investment in U.S. biotech under heightened scrutiny, a sweeping measure that comes as Asian investors pour billions into stateside drug developers.

Biotech is among 27 industries subject to Treasury Department rules, which mandate that foreign investments in “critical technologies” undergo review by the Committee on Foreign Investment in the U.S., or CFIUS. That committee has the power to block deals if it deems them a threat to national security or U.S. “technological superiority.” Those who don’t submit to the review could face fines as high as their proposed investments.


The rules, which take effect Nov. 10, come amid a groundswell of Asian interest in U.S. biotech. In the first nine months of 2018, 43 percent of private biotech deals included at least one Asian investor, up from just 11 percent in 2016, according to data from Pitchbook.

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