According to the United States Attorney's Office, Xanthe Lam, a principal scientist at the Roche Holding AG unit from 1986 until 2017, conspired with her husband and fellow former employee Allen Lam, and John Chan, another former Genentech employee, to steal trade secrets over the course of 5 years related to the biopharmaceutical dornase alfa (Pulmozyme) and some of Roche’s top-selling cancer drugs: rituximab (Rituxan), trastuzumab (Herceptin), and bevacizumab (Avastin).
According to a statement issued October 29 by the United States Attorney’s Office in San Francisco, former Genentech employees were charged with conspiring to steal trade secrets to assist biosimilar developer JHL Biotech.
According to the statement, Xanthe Lam, a principal scientist at the Roche Holding AG unit from 1986 until 2017, conspired with her husband and fellow former employee Allen Lam, and John Chan, another former Genentech employee, to steal trade secrets over the course of 5 years related to the biopharmaceutical dornase alfa (Pulmozyme) and some of Roche’s top-selling cancer drugs: rituximab (Rituxan), trastuzumab (Herceptin), and bevacizumab (Avastin).
JHL is currently in the process of developing biosimilars for all 3 of the branded products. In fact, both of its potential biosimilars for trastuzumab and rituximab are about to enter phase 3 trials, while its potential bevacizumab biosimilar was cleared for a phase 1 trial in February 2018. JHL also indicated in March 2018 that it would commence a phase 1 clinical trial of its dornase alfa biosimilar.
The indictment alleges that Xanthe Lam downloaded, collected, and transferred to Allen Lam and others at JHL “certain confidential Genentech documents relating to the processes by which the company formulated drugs and managed raw materials. Xanthe Lam also allegedly secretly consulted for JHL while still employed at Genentech.”
According to prosecutors, Xanthe Lam also allowed a fourth conspirator, James Quach, employed by JHL, to gain access to Genentech documents in efforts to steal the company’s proprietary manufacturing protocols. Specifically, the indictment alleges that she allowed Quach to gain access to Genentech’s secure document repository from which he subsequently stole the company’s proprietary manufacturing protocols.
“We don’t think the government will be able to sustain the charges,” said Xanthe Lam’s lawyer, William Osterhoudt, Bloomberg reported. “She is a brilliant scientist and has patents in her own name. She has been working hard to develop medicines to help people,” he said.
Separately, Genentech filed a civil suit, making similar allegations, in a San Francisco federal court.
“Dishonest and illegal actions such as these threaten scientific innovation, obstruct fair competition, and undermine the work of our employees and people throughout the industry who act with integrity and in the best interests of patients every day,” a Roche representative told Yahoo Finance on Tuesday.
All 4 defendants were arraigned earlier this week before a federal magistrate judge and pleaded not guilty. If found guilty of trade secret theft, Xanthe Lam, Allen Lam, and Chan face as long as 10 years in prison. Quach could face as many as 5 years. All 4 defendants were released on bond and are due back in court on November 2.
Escaping the Void: All Things Biosimilars With Craig & G
May 4th 2025To close out the Festival of Biologics, Craig Burton and Giuseppe Randazzo from the Association for Accessible Medicines and the Biosimilars Council tackle the current biosimilar landscape and how the industry can emerge from the "biosimilar void."
Biosimilar Market Development Requires Strategic Flexibility and Global Partnerships
April 29th 2025Thriving in the evolving biosimilar market demands bold collaboration, early global partnerships, and a fresh approach to development strategies to overcome uncertainty and drive future success.
How AI Can Help Address Cost-Related Nonadherence to Biologic, Biosimilar Treatment
March 9th 2025Despite saving billions, biosimilars still account for only a small share of the biologics market—what's standing in the way of broader adoption and how can artificial intelligence (AI) help change that?
BioRationality: EMA Accepts Waiver of Clinical Efficacy Testing of Biosimilars
April 21st 2025Sarfaraz K. Niazi, PhD, shares his latest citizen's petition to the FDA, calling on the agency to waive clinical efficacy testing in response to the European Medicines Agency's (EMA) efforts towards the same goal.
President Trump Signs Executive Order to Bring Down Drug Prices
April 16th 2025To help bring down sky-high drug prices, President Donald Trump signed an executive order pushing for faster biosimilar development, more transparency, and tougher rules on pharmacy benefit managers—aiming to save billions and make meds more affordable for everyone.