Former Genentech employees charged with trade secrets theft
Alex Tse, US attorney for the Northern District of California, has charged three former Genentech employees with trade secrets theft.
Tse released a statement about the matter on Monday, October 29, following the filing of a 28-page indictment on Thursday, October 25.
Biotech company Genentech, a subsidiary of Swiss healthcare firm Roche, develops and manufactures treatments for serious or life-threatening medical conditions.
Xanthe Lam, Allen Lam, and James Quach allegedly took “confidential Genentech information” to assist Taiwan-based JHL Biotech in creating and selling drugs similar to those produced by Genentech.
The indictment said Xanthe worked as a principal scientist for Genentech, while her husband, Allen, worked in quality control at the company. However, Allen then worked as a consultant for JHL Biotech during 2013, 2014, and 2017.
Xanthe’s allegedly offending actions included spending four weeks at JHL Biotech’s facilities in Taiwan with her Genentech-issued laptop, without authorisation.
A fourth defendant, John Chan, has also been indicted, but he is not a former employee of Genentech. The indictment alleged that Xanthe helped family friend Chan to obtain employment at JHL Biotech.
Between 2012 and 2017, the four individuals allegedly stole Genentech’s trade secrets related to biopharmaceuticals Pulmozyme (dornase alfa), Rituxan (rituximab), Herceptin (trastuzumab), and Avastin (bevacizumab).
JHL Biotech was developing biosimilar versions of these four Genentech medications, which treat cystic fibrosis, leukaemia, metastatic breast cancers, and other cancers respectively.
The indictment alleged that JHL Biotech’s founders “solicited” Xanthe and Allen to help it develop biosimilars that would directly compete with Genentech’s products.
Conspiracy to commit theft of trade secrets carries the maximum penalty of ten years in prison and a $250,000 fine.
Two of the individuals have also been charged with conspiracy to commit computer fraud and abuse.
The accused appeared in court on Monday. They were released on bond, although they are due back in court tomorrow, November 2.
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