Ex-Genen­tech sci­en­tist sen­tenced to six months in prison for steal­ing trade se­crets

Al­most four years af­ter Genen­tech first pub­licly ac­cused a for­mer top sci­en­tist of steal­ing trade se­crets, she’s been sen­tenced to six months in prison.

Xan­the Lam and her hus­band, Allen Lam, were both hand­ed the same sen­tence of six months’ im­pris­on­ment and $10,000 in fines. Their dead­line for vol­un­tary sur­ren­der will be next April, as they aren’t cur­rent­ly in cus­tody.

A 30-year vet­er­an at the biotech, Xan­the Lam was work­ing full-time as a prin­ci­pal sci­en­tist when Racho Jor­danov and Rose Lin, the CEO and COO of Tai­wan’s JHL Biotech, ap­proached her for in­sid­er in­for­ma­tion about the Roche sub­sidiary’s block­buster can­cer drugs. JHL was look­ing to de­vel­op biosim­i­lars to those drugs, and Lam’s se­nior role gave her ac­cess to a trove of con­fi­den­tial doc­u­ments and files that she then turned over to JHL.

Those in­clude de­tailed doc­u­ments like stan­dard op­er­at­ing pro­ce­dures used in reg­u­la­to­ry fil­ings. At one point, pros­e­cu­tors al­lege that JHL em­ploy­ees draft­ed around 90 dif­fer­ent SOPs us­ing Genen­tech’s ma­te­r­i­al, some­times sim­ply copy­ing and past­ing or re­mov­ing the Genen­tech lo­go.

In or­der to keep the il­lic­it scheme from Genen­tech, she com­mu­ni­cat­ed with JHL em­ploy­ees and re­ceived pay­ment through Allen Lam.

The trade se­crets of­fered a short­cut, Genen­tech ar­gued, for JHL to de­vel­op biosim­i­lars at an “as­ton­ish­ing” pace for a start­up, rack­ing up mil­lions of dol­lars of in­vest­ment and scor­ing a part­ner­ship with Sanofi — while en­rich­ing the founders.

Jor­danov and Lin have pre­vi­ous­ly plead­ed guilty to both steal­ing trade se­crets and ly­ing to in­vestors. They were sen­tenced to one year and a day.

As for the Lams, who al­so plead­ed guilty, they will be sub­ject to three years of su­per­vised re­lease up­on the end of their prison term.

The sen­tenc­ing or­der was filed last week at the Unit­ed States Dis­trict Court for the North­ern Dis­trict of Cal­i­for­nia and en­tered over the week­end.

Has the mo­ment fi­nal­ly ar­rived for val­ue-based health­care?

RBC Capital Markets’ Healthcare Technology Analyst, Sean Dodge, spotlights a new breed of tech-enabled providers who are rapidly transforming the way clinicians deliver healthcare, and explores the key question: can this accelerating revolution overturn the US healthcare system?

Key points

Tech-enabled healthcare providers are poised to help the US transition to value, not volume, as the basis for reward.
The move to value-based care has policy momentum, but is risky and complex for clinicians.
Outsourced tech specialists are emerging to provide the required expertise, while healthcare and tech are also converging through M&A.
Value-based care remains in its early stages, but the transition is accelerating and represents a huge addressable market.

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Clay Siegall will be back in the CEO seat, taking the helm of a private startup working on targeted cancer therapies.

It’s been almost a year since Siegall resigned from Seagen, the biotech he co-founded and led for more than 20 years, in the wake of domestic violence allegations by his then-wife. His eventual successor, David Epstein, sold the company to Pfizer in a $43 billion deal unveiled last week.

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The ruxolitinib XR tablets are designed to be taken once a day, whereas Jakafi is indicated for twice daily dosage (although some patients can take it once daily).

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Eu­ro­pean Com­mis­sion de­lays pro­pos­al for ma­jor changes to phar­ma leg­is­la­tion

The European Commission has once again delayed the release of its proposal for an overhaul of the continent’s pharmaceutical legislation.

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While the agency hasn’t provided an updated timeline, the spokesperson said the agenda is “always indicative and adoption dates of Commission proposals may change any time, especially when these proposals concern reforms of complex legislations of major importance.”

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NK cell ther­a­py-fo­cused biotech eyes SPAC deal

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Graf Acquisition Corp. IV and NKGen Biotech announced Thursday, with few other details, that the two companies signed a non-binding letter of intent to “pursue a business combination.” Graf Acquisition II and III withdrew their IPOs last year.

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