Genscript Biotech says Chinese customs raided offices, shares at 20-month low

Genscript Biotech

22/09/2020 05:18

HONG KONG, Sept 22 (Reuters) - Genscript Biotech Corp
 1548.HK  said customs raided its offices in China in connection
with an investigation into suspected violations of import and
export regulations, sending the firms' shares plummeting to a
20-month low.
    The Jiangsu-based biotech firm said China's Customs
Anti-Smuggling Department raided its offices in Nanjing and
Zhenjiang, and its Chairman Fangliang Zhang is under
"residential surveillance", while four other employees have been
detained for questioning.
    "The group's business operations remain normal. The company
has taken legal advice as appropriate," Genscript said, adding
it will assist authorities with the investigation, if required.
    No charges has been filed against any entity or individual,
the company said, adding that Zhang will continue to take part
in decision making via appropriate means but is not
participating in Genscript's daily operations.
    Zhang is also chairman and chief executive officer of
Genscript's unit Legend Biotech Corp  LEGN.O . Legend Biotech
has appointed its Chief Financial Officer Ying Huang as interim
CEO, the Hong Kong-listed firm added.
    Shares of Genscript plunged as much as 27.1% to HK$10.12,
their lowest since January 2019, and on track for its worst day
since September 2018. The benchmark Hang Seng index  .HSI  slid
0.3%.
        
     
    
    
     
    
    

 (Reporting by Donny Kwok; Editing by Kim Coghill)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))