New Delhi, Oct. 13 -- A piece of US legislation from 2024 that aimed to curb American companies' ties to certain Chinese biotechs has made a comeback - and Indian contract drug manufacturers are primed to benefit from it.

The Biosecure Act, a bill that was blocked from becoming law in 2024, was reintroduced as an amendment in a key defence spending bill that the US Senate approved on Friday, 10 October. Shares of companies such as Divi's Laboratories, Syngene, Laurus Labs, Piramal Pharma, and Blue Jet Healthcare surged up to 5% on Friday on the news, anticipating that supply chains would shift away from China.

If the bill becomes law, these contract development and manufacturing organisations (CDMOs), as well as contract research organi...