Karen Freifeld
(Reuters) – The U.S. House of Representatives Committee on China has asked the FBI and intelligence community to brief them on GenScript Biotechnology Co and three of its subsidiaries to determine whether the Chinese Communist Party has influence over their activities.
In a May 30 letter to the FBI and the U.S. Office of the Director of National Intelligence, committee chairman John Moolenaar and ranking member Raja Krishnamoorthy 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 letter mentions three subsidiaries: Bestzyme, Legend Biotech and ProBio.
Drugmaker Legend partnered with Johnson & Johnson (NYSE:) in 2017 to develop the Carvykti cancer cell therapy. They sold $500 million of the drug last year and expect sales to eventually top $5 billion a year.
GenScript, Legend and J&J did not immediately respond to requests for comment. As are other subsidiaries. GenScript is a pharmaceutical research and manufacturing services provider with more than 200,000 customers in more than 100 countries and a sales, manufacturing, and research and development presence in China, the United States, Europe and Asia Pacific, according to its website.
Lawmakers’ interest in GenScript comes two weeks after another House committee approved a bill that would restrict business with China’s WuXi AppTec. Wuxi Biological drugs (GC:) BGI, MGI and Complete Genomics, as well as other possible biotech companies of concern.
The bill still must clear full House and Senate approval before President Joe Biden can sign it into law. But if passed, it would encourage American pharmaceutical and health care companies to reduce their dependence 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 U.S. companies and government agencies, raises concerns about potential risks to the intellectual property of U.S. firms and GenScript’s broader role in promoting the PRC (China).” biotechnological opportunities,” the letter says.