In a post on their official website, they explained an employee was diagnosed with the virus at their studio in Tokyo, Japan, who is now under “close supervision by medical staff” at a hospital.
The employee hasn’t worked at their office since 2nd April, with all staff at Game Freak working from home since Wednesday 1st April, so the studio believes it isn't a threat to other employees.
Game Freak also states “it is not necessary at this time to cease our work” - so it likely won’t affect future projects.
You can check out a translation of the full statement (via translator Robert Sephazon) below.
As well as Pokémon, Game Freak have developed numerous titles over the years, including HarmoKnight, Pocket Card Jockey and more recently Little Town Hero.
The studio will likely be working on the upcoming Pokémon Sword and Shield expansions, with first part Isle Of Armor set to be released in June.
Many game studios are now working from home due to the virus outbreak, including Electronic Arts and Grand Theft Auto creators Rockstar.