By Karen Freifeld
(Reuters) -The U.S. Home of Representatives committee on China has requested the FBI and the intelligence neighborhood for a briefing on GenScript Biotechnology Co and three subsidiaries to find out if the Chinese language Communist Occasion has affect over their operations.
In a letter dated Might 30 to the FBI and the U.S. workplace of the director of nationwide intelligence, committee chair John Moolenaar and rating member Raja Krishnamoorthi stated GenScript’s work with U.S. firms and the federal government raises considerations in regards to the mental property of U.S. companies and will assist enhance China’s biotech capabilities.
The three subsidiaries cited within the letter are Bestzyme, Legend Biotech and ProBio.
Drugmaker Legend partnered with Johnson & Johnson (NYSE:) in 2017 to develop most cancers cell remedy Carvykti. They offered $500 million of the drug final yr and count on gross sales to finally high $5 billion a yr.
A spokesperson for GenScript stated they had been based in New Jersey and “don’t take course from any authorities.” They added that they regarded ahead to talking with the Home committee.
Legend and J&J didn’t instantly reply to requests for remark. Nor did the opposite subsidiaries. GenScript is a pharmaceutical analysis and manufacturing service supplier with over 200,000 prospects in over 100 international locations and gross sales, manufacturing, and analysis and growth presence in China, the U.S., Europe and the Asia Pacific, in line with its web site.
The lawmakers’ curiosity in GenScript comes two weeks after one other committee within the Home accepted a invoice that might prohibit enterprise with China’s WuXi AppTec, WuXi Biologics (HK:) BGI, MGI and Full Genomics, and different attainable biotech firms of concern.
The invoice should nonetheless get by way of the total Home and Senate earlier than President Joe Biden might signal it into regulation. However, if handed, it could push U.S. pharmaceutical and healthcare firms to minimize their reliance on Chinese language analysis and manufacturing.
“GenScript’s position as a Contract Growth and Manufacturing Group, together with companies such because the manufacturing of customized gene synthesis for firms and U.S. authorities entities, raises considerations about potential dangers to the mental property of U.S. companies and GenScript’s broader position in advancing the PRC’s (China) biotech capabilities,” the letter stated.