Taiwanese biotech abandons drug R&D under Genentech MoU
Taiwanese company JHL Biotech will stop developing biosimilar versions of Genentech’s drugs as part of a memorandum of understanding signed by the parties to end trade secrets litigation.
The memorandum comes nearly a year after trade secrets theft charges were filed against three former Genentech employees by Alex Tse, US attorney for the Northern District of California.
Keker, Van Nest & Peters represents Genentech in the suit.
Laurie Mims, partner at Keker, said that JHL Biotech has agreed to end the development of all four of its biosimilar drugs implicated in the suit. According to Mims, JHL Biotech has also agreed to destroy all related cell lines, stipulate to a permanent injunction, fully cooperate with Genentech’s investigation, and reimburse Genentech for its legal fees.
Keker partner Cody Harris added: “Unlike the usual settlement, which brings work to a close, this one kicks off an extremely active phase in the case, in which we will thoroughly investigate JHL’s misconduct, ensure compliance with the settlement, and continue pursuing Genentech’s claims against the remaining individual defendants.”
According to the charges, the employees allegedly took “confidential Genentech information” to assist JHL Biotech in creating and selling drugs similar to those produced by Genentech.
A fourth defendant (who is not a former Genentech employee) was also indicted, with the US attorney alleging that he helped an ex-Genetech worker and family friend 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).
Within days, Genentech filed a lawsuit against JHL Biotech at the US District Court for the Northern District of California, accusing the Taiwanese biotech of misappropriating trade secrets and seeking injunctive relief and damages.
“JHL’s theft was extensive and the stolen trade secrets concern some of the most critical facets of Genentech’s business ... Each stolen trade secret, standing alone, represents Genentech’s hard work and investment, and would aid a competitor looking for a shortcut to developing and marketing its own rival medicine,” said the claim.
Genentech, a subsidiary of Swiss healthcare firm Roche, also alleged that, taken together, the stolen information “provides a roadmap” for JHL to produce biosimilar versions of Genentech’s medicines.
In March 2019, District Judge William Alsup granted a preliminary injunction in Genentech’s favour, while denying JHL Biotech’s attempt to dismiss the case.
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