First and foremost, Genpets are not really living creatures. Genpets are made by an artist named Adam Brandejs along with makeup by Crystal Pallister. They are made as a statement about bioengineering for pets and are mainly meant to show the world that humanity is not yet ready for genetically altered pets. The artist states on his site that he is not against bioengineering, just corporate ethics and what how far they will go to make money. So, while they are real in the sense that you can physically touch them, they are not actually a living entity.
from wikipedia