In an Endpoints News article, litigation & enforcement partner Emerson Siegle and life sciences licensing partner Hannah England discussed the U.S. Department of the Treasury’s Comprehensive Outbound Investment National Security Act (COINS) rule expansion and implications on China biotechnology dealmaking.
While licensing deals were specifically not mentioned in the regulations, other more complex transactions involving multiple assets, knowledge-sharing and collaboration could be included in Treasury’s broad definition of joint ventures, which are prohibited if the Chinese partner engages in specified, biotech-related activities.
Emerson said that specific facts and circumstances of each China deal will need to be analyzed to assess how close to what the expanded COINS rule is a de facto joint venture agreement.
Hannah expects to get more questions about what is a “joint venture” and the kinds of China transactions that might involve not just the sharing of technology information but potentially profits and losses.
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