Oxford Nanopore is drawing up plans for a lawsuit against Chinese biotech firm BGI over an alleged breach of contract.

The London-listed biotech firm today told shareholders it had filed a US court application in the Northern District of California for leave to serve subpoenas in support of a lawsuit it intends to file in the courts of England and Wales against Beijing-based genomics business BGI and MGI, its former subsidiary that was later spun out as a separate entity.

Oxford Nanopore said it intends to file “claims for breach of contractual obligations, claims for breach of common law obligations of confidence, breach of duties under the Trade Secrets (enforcement etc.) Regulations 2018, and an entitlement claim to a license of certain patents.”

BGI is understood to have been a customer of Oxford Nanopore that conducted research using its technology. But Oxford Nanopore is concerned BGI may have since used its knowledge of Oxford Nanopore’s technology for commercial purposes to develop its own nanopore-based platform in breach of the initial contract.

“While not commenting on future litigation, the group does not believe BGI’s nanopore-based sequencing technology is able to be used in commercial products around the world without infringing or misappropriating the group’s substantial portfolio of proprietary rights,” Oxford Nanopore said.

Oxford Nanopore shares fell 2.8% to 140p.

An Oxford Nanopore spokesperson declined to offer additional comment on the record. BGI and MGI have been contacted for comment.