By Karen Freifeld
(Reuters) -The U.S. House of Representatives committee on China on Tuesday sent a letter to the directors of the FBI and national intelligence, renewing its concerns about GenScript Biotechnology’s work with U.S. companies, given its ties to China.
In the letter, which was seen by Reuters, committee chair John Moolenaar and ranking member Raja Krishnamoorthi asked for updated intelligence and law enforcement information involving the global biotechnology company and affiliates Bestzyme, Legend and ProBio.
Last year, the lawmakers asked for a similar briefing on whether the Chinese Communist Party had influence over GenScript’s operations and its role in advancing China’s biotech capabilities.
News of the letter sent during the administration of former President Joe Biden last June caused GenScript shares to fall as much as 25% in Hong Kong.
In recent years, U.S. lawmakers have highlighted the threat from companies called Contract Development and Manufacturing Organizations with operations in China. Lawmakers fear the firms, which offer drug development and manufacturing services to pharmaceutical and biotech companies, could steal intellectual property and help advance China’s capabilities, and have sought to push U.S. pharmaceutical and healthcare companies to lessen their reliance on them.
“Since our initial letter, GenScript has undertaken significant new investments,” the lawmakers said in Tuesday’s letter to FBI director Kash Patel and Director of National Intelligence Tulsi Gabbard. “Given this and other recent developments, we would benefit from renewing our conversation regarding relevant national security concerns.”
GenScript, founded in New Jersey in 2002 where it has facilities, also operates in Nanjing, China. It provides custom gene synthesis and other services for companies and U.S. government entities. The letter noted that GenScript presented “potential risks to the intellectual property of U.S. firms,” suggesting it could steal from U.S. firms.
In a statement on Wednesday, GenScript said it operates “transparently and professionally across all markets,” and that it maintains the “highest international standards” in data security and IP protection.
“We are aware of ongoing discussions involving the biotechnology industry and congressional correspondence,” the company said. “While our name was included in the context of these broader conversations, there have been no actions, allegations or findings directly related to our company.”
Over the past two years, the company added, GenScript has invested more than $100 million in U.S. operations.
Representatives of Patel and Gabbard did not immediately reply to requests for comment.
GenScript has more than 5,500 employees and 200,000-plus customers across over 100 countries and regions.
(Reporting by Karen Freifeld in New York; Editing by Chris Sanders and Matthew Lewis)
