Exclusive-US lawmakers renew concerns about GenScript's ties to China

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.

The company did not immediately respond to a request for comment on the renewed scrutiny. A spokesperson for GenScript told Reuters last year that it does "not take direction from any government."

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)