The United States House of Representatives’ China Commission has requested the Biden administration to provide a briefing on the Chinese biotech company GenScript to determine the company’s relationship with the Chinese Communist Party and whether it poses any risks to the United States.
In a report by Axios on Friday, they revealed that they have seen a copy of this letter. This represents the latest development in Congress’s efforts to address biotech companies with ties to China.
Members of Congress have expressed concerns that these companies may pose risks to U.S. national security. However, some figures in the life sciences industry worry about potential impacts on the pharmaceutical supply chain.
Chairman of the China Commission, John Moolenaar, and the top-ranking Democratic House member, Raja Krishnamoorthi, jointly wrote to FBI Director Christopher Wray and National Intelligence Director Avril Haines. The letter stated that there is a “close connection” between GenScript and the Chinese Communist Party.
GenScript was founded in New Jersey in 2002 but its “primary operations” are based in Nanjing, China.
The letter pointed out that the CCP plays an active role in GenScript’s operations, seeking to “aggressively build a CCP-controlled chokehold in key areas of biotechnology,” where the United States currently holds a leading position.
“Public statements from GenScript and the active role of its internal CCP committee in guiding the company’s strategic direction demonstrate that the company is working in coordination with Beijing to reduce reliance on foreign biotechnology and dominate the global industry,” the letter said.
“While these aspirations do not necessarily equate to illegal behavior, they do underscore the need to remain vigilant in order to maintain America’s competitive edge and prevent sensitive technology and capabilities from transferring to entities influenced by the Chinese government,” the letter added.
GenScript’s statement says, “Our leadership has always operated independently – we do not accept any government directives.”
“We look forward to collaborating with the special committee to help them better understand our business and our decades-long commitment to being a force for good in the life sciences field,” it added.
GenScript is a Contract Development and Manufacturing Organization (CDMO) that provides process development, preparation, process optimization, registration, verification of bulk production, and commercialized custom R&D production services for pharmaceutical production enterprises and biotech companies, particularly for innovative products.
Due to the high costs associated with the R&D and production of biopharmaceuticals, many companies choose to outsource certain processes, leading to a significant demand for CDMOs.
The China Commission stated that U.S. pharmaceutical companies’ reliance on Chinese companies poses a “potential risk to U.S. intellectual property.”
This letter was issued two weeks after the House Oversight Committee introduced a draft of the Biotech Security Act, which proposes cutting off U.S. government funding to certain Chinese biotech companies.
GenScript is not among the five companies mentioned in that bill, but as the bill progresses through legislation, more companies may be added. The bill received broad bipartisan support and could be voted on in the House of Representatives as early as June.