Novartis asks court for access to rival’s documents over trade secrets claims
Swiss multinational says competitor has been “uncooperative” in investigation into whether former Novartis employee took trade secrets |Novartis files complaint for discovery, asking for permission to issue subpoena.
Novartis has asked for court intervention citing Takeda Pharmaceuticals’ “uncooperative” response to the Swiss pharma giant’s efforts to uncover alleged trade secrets misappropriation, saying its rival was stonewalling an investigation concerning a former Novartis employee.
On Tuesday, October 24, Novartis filed a complaint for discovery at the Superior Court in Massachusetts, asking for permission to issue a subpoena to Takeda to find out the extent to which its trade secrets had been used at the firm.
Novartis claims that a former employee took sensitive documents and information with them shortly before resigning from the firm in May this year, and then joined Takeda in July in a similar role to the one they held at Novartis.
The drugmaker says that Takeda subsequently “stonewalled” its efforts to determine the extent to which those trade secrets had been used at the firm.
“An atypical response”
Novartis says the employee accused of taking the confidential information started working at an Egyptian affiliate of Novartis in 2009 and resigned from the firm in May this year, with their last role relating to cell and gene therapy operations.
Around a month before their last day of work, the former employee transferred around 10,000 Novartis files to their personal possession, the firm claims, which included sensitive technical information, and sales and financial data, among other things.
Novartis says its personnel met with the ex-employee through an online platform to identify and recover information they allegedly misappropriated. The former employee “cooperated to a certain extent, but refused to provide access to at least one ZIP file that is believed to contain additional Novartis information”, the firm said.
From the former employee’s LinkedIn profile, Novartis discovered they had joined Takeda in Egypt in July 2023 and were working in a similar role to that held at Novartis.
Novartis believes the confidential and trade secret information contained in the files allegedly taken by the ex-employee is directly relevant to their work for Takeda.
The global healthcare firm said it had been attempting to resolve the matter through contact with Takeda since October 3, and had requested that Takeda immediately suspend work with the employee while the investigation continued, suspend their access to Takeda’s information systems, and start an internal investigation, among other things.
However, Takeda had taken “an atypical, uncooperative response” to Novartis’ requests, according to the complaint, and refused to provide any substantial response other than that it was “looking into” the matter.
Novartis is asking the court for relief so it may determine the extent of the alleged trade secrets misappropriation.
This includes an order authorising it to conduct limited discovery of Takeda by subpoenaing business records and documents, and obtaining information through interrogatories. Novartis is also asking for an order that Takeda not destroy, alter, change or modify any documents or evidence relating to the allegations stated in the complaint.
The case is Novartis Pharmaceuticals v Takeda Pharmaceuticals. Novartis is represented by Beck Reed Riden in the matter, counsel for the defendant is not yet known.
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