Biotech start-ups hit by coronavirus work stoppages

Abstract

As the outbreak of the new coronavirus, now officially named severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), continues to mushroom, the related work stoppages in China have put a spotlight on Western biotech companies’ dependence on Chinese contract research organizations (CROs). The situation has prompted some start-ups to rethink their contingency plans—particularly when it comes to chemistry services. Biotech firms had anticipated delays related to the Lunar New Year holidays, and so far outbreak-related travel restrictions have extended that work gap by only a week. But as the virus spreads—according to Chinese authorities, as of Feb. 13, more than 60,100 people had been infected and nearly 1,400 had died, most of them in China—some biotech firms that rely on China are becoming nervous about how long their projects could be on hold. Much attention is on WuXi AppTec, the largest Chinese CRO. Although many of its operations are in Shanghai,