Chinese firm that shares roots with Mayo Clinic firm faces heightened security measures – Reuters

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ROCHESTER — A Chinese biotech company that shares its roots with a company that runs a joint venture with Mayo Clinic was placed on an “unverified list” by the US government this week.

Wuxi Organic Productswhich started in 2010 as a business unit of Wuxi AppTec and later spun off into a separate company in 2015, was placed on the list along with 32 other Chinese organizations.

The Commerce Department explained that being on the list means the US government cannot verify the legitimacy of the company. Organizations on the list are required to complete more paperwork and follow additional regulations when dealing with US companies.

Wuxi AppTec and Mayo Clinic own a joint venture called WuXi Diagnostics. WuXi Diagnostics opened a 3,008 square foot “research and diagnostic test development facility” in 2019 on the third floor of the A discovery square complex in downtown Rochester.

In 2019, WuXi Diagnostics announced that it hoped to grow its Rochester staff from 12 employees. WuXi Diagnostics went on to describe the goal of the Rochester facility as “to accelerate the development of esoteric diagnostic products and bring more personalized and accurate clinical diagnostic services to patients around the world.”

While shares of WuXi Diagnostics and Wuxi AppTec fell after the announcement, Wuxi AppTec told US media that it was not on the unverified list and did not hold any shares of Wuxi Biologics.

It’s unclear what effect, if any, a sister company’s listing will have on the Rochester operation.

WuXi AppTec Group and Mayo Clinic formed WuXi Diagnostics in early 2018, three years after WuXi Diagnostics was established as a separate company.

“It focuses on the development of advanced diagnostic technologies to create a leading special clinical diagnostic platform and an integrated research and development platform of clinical diagnostic reagents and products, establish a data center of large-scale clinical trials and empowering Chinese medical institutions,” according to a description by WuXi.

Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in “Heard on the Street.” Send advice to

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