Inside the COINS Act: How Treasury’s China Rule Could Reshape Drug Development

The U.S. Treasury’s proposed COINS Act regulations introduce significant uncertainty for the pharmaceutical industry by designating various biotech products, including cell and gene therapies, as covered items. While the rules do not explicitly prohibit licensing, the lack of precise definitions creates a chilling effect on cross-border deal-making and potential joint ventures. These regulations risk isolating U.S. innovation from global scientific advancements, potentially forcing companies to develop separate pipelines for U.S. and international markets. Policymakers face a complex trade-off between restricting capital flow to China for national security and maintaining the speed of drug development. Treasury’s explicit acknowledgment that these rules could harm U.S. public health highlights the tension between geopolitical defensive postures and the necessity of maintaining a competitive, globalized biotech ecosystem.