US lawmakers ask FBI for briefing on GenScript Biotech's links to China (updated)

Genscript Biotech

01/06/2024 17:56

(Adds GenScript comment in paragraph 5)
    By Karen Freifeld
       May 31 (Reuters) - The U.S. House of Representatives
committee on China has asked the FBI and the intelligence
community for a briefing on GenScript Biotechnology Co  1548.HK 
and three subsidiaries to determine if the Chinese Communist
Party has influence over their operations.
    In a letter dated May 30 to the FBI and the U.S. office of
the director of national intelligence, committee chair John
Moolenaar and ranking member Raja Krishnamoorthi said
GenScript's work with U.S. companies and the government raises
concerns about the intellectual property of U.S. firms and could
help improve China's biotech capabilities.
    The three subsidiaries cited in the letter are Bestzyme,
Legend Biotech  LEGN.O  and ProBio.
    Drugmaker Legend partnered with Johnson & Johnson  JNJ.N  in
2017 to develop cancer cell therapy Carvykti. They sold $500
million of the drug last year and expect sales to eventually top
$5 billion a year. 
    A spokesperson for GenScript said they were founded in New
Jersey and "do not take direction from any government." They
added that they looked forward to speaking with the House
committee.
    Legend and J&J did not immediately respond to requests for
comment. Nor did the other subsidiaries. GenScript is a
pharmaceutical research and manufacturing service provider with
over 200,000 customers in over 100 countries and sales,
manufacturing, and research and development presence in China,
the U.S., Europe and the Asia Pacific, according to its website.
    The lawmakers' interest in GenScript comes two weeks after
another committee in the House approved a bill that would
restrict business with China's WuXi AppTec  603259.SS , WuXi
Biologics  2269.HK  BGI, MGI and Complete Genomics, and other
possible biotech companies of concern.
    The bill must still get through the full House and Senate
before President Joe Biden could sign it into law. But, if
passed, it would push U.S. pharmaceutical and healthcare
companies to lessen their reliance on Chinese research and
manufacturing.
    "GenScript's role as a Contract Development and
Manufacturing Organization, including services such as the
production of custom gene synthesis for companies and U.S.
government entities, raises concerns about potential risks to
the intellectual property of U.S. firms and GenScript's broader
role in advancing the PRC's (China) biotech capabilities," the
letter said.    

 (Reporting by Karen Freifeld; additional reporting by Mike
Erman in New York; editing by Chris Sanders and Josie Kao)
 ((karen.freifeld@thomsonreuters.com; +1(646) 223-6921;))