US Biosecure Act: Sai Life Sciences Plans Capacity Expansion By FY27 Amid China-Plus-One Shift
The act which mainly aims to safeguard American biotech and health data from foreign threats, particularly those posed by Chinese companies will likely benefit Indian companies.
The passage of the US Biosecure Act, embedded within the National Defense Authorisation Act, is set to reshape global pharmaceutical supply chains.
The act which mainly aims to safeguard American biotech and health data from foreign threats, particularly those posed by Chinese companies will likely benefit Indian companies. The legislation aims to reduce US dependence on foreign labs and suppliers.
One of the key beneficiaries of this shift is Sai Life Sciences. Speaking on the development with NDTV Profit, Siva Chittor, Whole-Time Director and Chief Financial Officer of Sai Life Sciences, said, “This is primarily a pharma initiative, so to speak pharma companies will or has already started moving things in our opinion...Those who were waiting to see how things will unfold will likely act soon. People who already have relationship with pharma will start seeing benefits on strategic conversations in next 18-24 months”
As US drug makers reduce dependence on Chinese players, Indian CDMOs (Contract Development and Manufacturing Organisations) are poised to capture new opportunities.
On whether Sai Life Sciences is ready to meet the rising demand, Chittor added, "We currently have around 700 KL of capacity and expect to increase this to approximately 1,150 KL by the end of fiscal 2027. When pharma companies show intent and we match it with capex investments, ramping up capacity is achievable. With a 15–18 month window, companies can easily set up additional capacity."
The Biosecure Act was first introduced in the US Senate in December 2023 and in the House in January 2024. It gained momentum and was passed by the House with bipartisan support in September 2024. However, the Senate blocked its inclusion in the National Defense Authorisation Act (NDAA) for 2025 later that year. After revisions, the Act resurfaced in August 2025.
