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
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 ) and ProBio.
Drugmaker Legend partnered with Johnson & Johnson ( JNJ ) 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.
GenScript, 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, WuXi
Biologics 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.