Asia Tech Wire (June 3) -- Chinese biopharmaceutical company Genscript Biotech Corp (1548.HK) plunged nearly 18% after facing a possible U.S. investigation.

GenScript said in a statement Sunday that it had noticed that two members of a select committee of the U.S. House of Representatives sent a letter dated May 30, 2024, to officials of the U.S. Federal Bureau of Investigation (FBI) and the Office of the Director of National Intelligence (ODNI) seeking information about the company.

The company said the letter does not claim that GenScript has committed any illegal acts and that it is not under the control of any government.

"The company will actively engage with the commission and help each other improve their understanding of the company's business and its decades-long commitment to being a positive force in the life sciences and in society," GenScript said.

According to the official website of the U.S. House Select Committee on the Chinese Communist Party, Raja Krishnamoorthi, a senior member of the committee, and John Moolenaar, its chairman, sent a letter to FBI Director Christopher Wray and Director of National Intelligence (DNI) Avril Haines.

The letter reads, "GenScript's role as a Contract Development and Manufacturing Organization (CDMO), 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 biotech capabilities."

The letter also mentions GenScript's three subsidiaries, Bestzyme, Nasdaq-listed Legend Biotech and GenScript ProBio.

Last month, a U.S. House of Representatives committee voted to pass a revised version of a biosafety bill that restricts U.S. entities from doing business with BGI Genomics, WuXi AppTec Co Ltd (2359.HK) and other Chinese biotech companies on national security grounds.