Treasury's Draft COINS Rules Put Biotech in Scope but Largely Spare Licensing Deals
- Treasury's proposed rule would add pharmaceutical compounds to the COINS Act outbound-investment regime, covering small molecules, biologics, cell and gene therapies and delivery systems.
- Trade reporting says ordinary in-licensing and fee-for-service R&D collaborations with Chinese companies are largely untouched, while equity stakes, joint ventures and some fund investments are in scope.
- Lawyers flag the NewCo model, where US investors build a company around a licensed Chinese asset, as the most exposed structure; the draft is open for public comment.
💡 Points Based on public reports
The carve-out for licensing is what matters for the Big Pharma deal flow of the past year, and the draft leaves the in-licensing playbook intact. The real pressure falls on the capital side: NewCos and US venture money into Chinese biotechs. Expect more structuring around licensing, and lobbying before the comment window closes.