GenScript Biotech Holdings surged in Hong Kong after its associate company disclosed promising early clinical data on a potential first-in-class cell therapy for treating cancer.
Shares rose as much as 29 per cent on Wednesday before trimming gains to trade 10.54 per cent higher at HK$13.42 at the close. The benchmark Hang Seng Index fell 1.56 per cent.
In the phase one trial – where the primary goal is typically to evaluate a therapy’s safety and gather early signals of efficacy in humans – its associate company, Legend Biotech, a Nasdaq Global Select Market-listed firm, found that 12 patients had no toxicities, no serious adverse events and no deaths, according to the company’s statement published on June 2.
The company enrolled patients with relapsed or refractory B-cell non-Hodgkin lymphoma. Their cancer had either returned after prior treatment or stopped responding to it altogether.
Its phase one data set will be presented as a late-breaking oral presentation at the European Hematology Association 2026 Congress, taking place from June 11 to 14 in Stockholm, Sweden.
China accounted for about one-third of the global early-stage drug pipeline, according to a January report from consultancy McKinsey & Company. A growing number of Chinese biotech firms have out-licensed early-stage drug candidates to US counterparts over the past two years.
The country’s ascent in the global pharmaceutical value chain has raised concerns among US lawmakers.
In a letter issued by the chairman of the House Select Committee on China, John Moolenaar, to the US Treasury Department on May 21, he urged the government to ban American investments in the Chinese biotech sector under the Comprehensive Outbound Investment National Security Act of 2025, which is being reviewed as part of broader efforts to restrict US outbound capital flows to countries of concern.
However, “the cross-border collaboration in life sciences, a cornerstone for human advancement, and a sector worth trillions of dollars, would remain largely intact,” said Zhang Jialin, head of China healthcare research at Nomura, in a note on May 25.
“Nevertheless, the sentiment towards the sector may be weighed down in the short term, even though investors have largely shrugged off recent out-licensing news,” he added.
This is not the first time US lawmakers have raised concerns about cross-Pacific biotechnology collaboration.
The Nanjing-based GenScript faced scrutiny in 2025 after two US lawmakers, including Moolenaar, wrote to the directors of the Federal Bureau of Investigation and the Office of the Director of National Intelligence seeking updated information about GenScript and its affiliates.
GenScript responded that it operated transparently and professionally across all markets and adhered to the highest standards of data security and intellectual property protection.
The same lawmakers requested a similar briefing in 2024, raising concerns over whether the company could be influenced by Beijing or used to advance China’s biotechnology ambitions.
Despite such concerns, broader market sentiment towards Chinese stocks has improved in recent months amid signs of easing tensions between Washington and Beijing.
During US President Donald Trump’s state visit to China last month, the two countries announced a series of agreements, including purchases of Boeing aircraft and US agricultural products. -- SOUTH CHINA MORNING POST
