Swiss life sciences investment market and its rules

Effective 1 January 2020, China’s new Foreign Investment Law (FIL) replaces the three main laws governing foreign-invested enterprises (FIEs) in China. A five-year transition period applies.

The intention of the FIL is to ensure equal treatment of foreign investors in the Chinese market compared to domestic investors and also to offer equal protection. The Committee on Foreign Investment in the United States (CFIUS) has also recently published draft regulations that are intended to implement the Foreign Investment Risk Review Modernization Act (FIRRMA). With the changes, CFIUS is to gain greater powers in reviewing transactions in the biotechnology and life sciences sectors, focusing in particular on export controls of certain biotechnology products, sensitive data on US citizens and real estate transactions.

There are no similar specific regulations for the biotechnology and life sciences sector in Switzerland. However, the Swiss parliament is currently discussing the introduction of investment controls. The outcome remains to be seen.