Top executives of JHL Biotech are alleged to have conspired to steal secrets for development of rituximab, bevacizumab, and trastuzumab biosimilars. Two co-conspirators have pleaded guilty in the case.
Two former officials of JHL Biotech, formerly of Zhubei, Taiwan, are alleged to have stolen trade secrets relating to biosimilar manufacture from Genentech, and a former Genentech principal scientist and her husband have pleaded guilty to conspiring to assist them, according to an unsealed indictment and statement from the US Attorney’s Office for the Northern District of California.
Raco Ivanov Jordanov, 73, of Rancho Santa Fe, California, co-founder and former CEO of JHL and Rose Lin, 72, of South San Francisco, California, another company co-founder and former company chief operating officer, are alleged to have also committed wire fraud exceeding $101 million.
The unsealed indictment alleges that the two worked with insiders at Genentech in San Francisco, California, to steal thousands of confidential and proprietary documents from Genentech that enabled JHL to accelerate its development and production of biosimilars of Genentech agents. JHL is alleged to have used the advantage it gained to obtain a lucrative biosimilar development deal with Sanofi.
At the time, JHL was working on biosimilars for rituximab (Rituxan), trastuzumab (Herceptin), and bevacizumab (Avastin).
Alleged Scheme
The indictment states that the scheme began in 2009 when Lin recruited a scientist at Genentech and her husband to steal confidential information. Those secrets helped JHL to “cut corners, reduce costs, solve problems, save time, and otherwise accelerate product development timelines,” the indictment states.
The alleged perpetrators were said to have taken documents covering Genentech’s standard operating procedures and pasted JHL logos over them and passed them off as JHL standard procedures. The partnership with Sanofi, a Paris, France-based company, was for the manufacture and distribution of biosimilars in China. That deal was signed in 2016.
“Sanofi allegedly paid $101 million to JHL Biotech, using foreign and interstate wires to carry out the corporate transaction. This cash payment allegedly was part of a strategic relationship worth potentially $337 million to JHL Biotech,” the indictment states.
Upon disclosure of some of the aspects for the above-described allegations, in 2019, JHL’s stock valuation, once as high as $916 million, crashed. The company later renamed itself and divided into 2 companies: Eden Biologics and Chime Biologics, both of Wuhan, China.
Co-conspirators
In tandem with the indictment, the US Attorney’s Office also indicated that Xanthe Lam and her husband Allen Lam, who worked in the Quality Control Department at Genentech, have pleaded guilty to conspiracy and other charges related to the theft of trade secrets from Genentech.
Panelists Call for Consistent Education, Support to Improve Patient Comfort With Biosimilars
May 15th 2024At the Festival of Biologics USA, panelists stressed the need for patient-centered communication and education to boost comfort with biosimilars, emphasizing consistent support from health care providers despite restrictive payer policies.
Exploring the Biosimilar Horizon: Julie Reed's Predictions for 2024
February 18th 2024On this episode of Not So Different, Julie Reed, executive director of the Biosimilars Forum, returns to discuss her predictions for the biosimilar industry for 2024 and beyond as well as the impact that the Forum's 4 new members will have on the organization's mission.
Cencora Analysis Shows Differences in Payer Coverage Between G-CSF Biosimilars
May 2nd 2024Data from a Cencora study showed some misalignment in payer coverage of granulocyte colony-stimulating factor (G-CSF) biosimilars, highlighting that while filgrastim biosimilars are often favored over the originator, reference pegfilgrastim still dominates over its biosimilars.
A New Chapter: How 2023 Will Shape the US Biosimilar Space for 2024 and Beyond
December 31st 2023On this episode of Not So Different, Cencora's Brian Biehn and Corey Ford take a look back at major policy and regulatory advancements in 2023 and how these changes will alter the space going forward.
AON Saves Over $243 Million With High Biosimilar Adoption
April 22nd 2024Thanks to high biosimilar adoption rates within the community oncology setting, American Oncology Network (AON) saved upwards of $243 million between 2020 and 2023, according to a presentation at the Festival of Biologics USA conference in San Diego, California.