(Yicai Global) Sept. 22 -- Genscript Biotech's shares plunged to their lowest level in six months after the Chinese life sciences company said it is under investigation for allegedly violating China's import and export regulations.

The Nanjing-based firm [HKG:1548] ended 17 percent lower at HKD11.48 (USD1.48) today, the stock's lowest closing price since March 30, after earlier slumping as much as 27 percent to HKD10.12.

Chairman Zhang Fangliang is under house arrest and four other employees have been detained for questioning, the company said in a statement yesterday. Officials from the China Customs anti-smuggling department inspected Genscript's sites in the cities of Nanjing and Zhenjiang on Sept. 17, it added.

Genscript Biotech, which provides contract research and development as well as production services to biomedical companies and academic institutions, may have fallen foul of the country's regulations on the export of human genetic resources, Caixin Media reported, citing industry sources.

Organs, tissues, cells, blood, DNA and other genetic materials collected in domestic clinical trials are not allowed to be shipped to other countries for testing.

The investigation may be related to the Covid-19 pandemic, news website Jiemian reported. Genscript developed a novel coronavirus detection kit in the first half of the year and partnered with American scientific research institutions to study Covid-19 antibodies.

Editor: Kim Taylor