Merck Faces US Security Probe Over China Clinical Trials

US lawmakers have opened a national security investigation into Merck's (NYSE: MRK) clinical trial activities in China, according to media reports. The probe focuses on trials conducted in politically sensitive regions, including Xinjiang, and at hospitals linked to the Chinese military.

Details of the Action

The investigation, led by members of the House Foreign Affairs Committee, examines concerns over intellectual property protection, ethical oversight, and the handling of sensitive biotechnology data. No formal charges have been filed, but investigators are requesting documents and information from the company.

Company's Position

Merck has stated its commitment to complying with all laws and regulations in the countries where it operates and expressed willingness to cooperate fully with the investigation. The company declined to comment on specific details.

Precedents and Context

This move comes amid rising tensions between Washington and Beijing over biotechnology. The Biden administration has previously imposed restrictions on US investments in certain sectors in China.

Potential Financial Impact

No direct financial impact has been identified yet, but the investigation could affect Merck's reputation and lead to fines or restrictions on its operations in China. Merck's stock fell 1.2% in after-hours trading.