Blog Big Molecule Watch September 24, 2020

Genentech, Inc. and JHL Biotech, Inc. File a Stipulation for Entry of a Proposed Consent Judgment and Permanent Injunction; Court Order in Response Asks Parties to Answer Questions

On September 9, 2020, Genentech, Inc. and JHL Biotech, Inc. filed a stipulation for entry of a proposed consent judgment and permanent injunction as to JHL Biotech, Inc.  That proposed consent judgment and permanent injunction is the result of the parties’ June 18, 2020 settlement agreement, in which JHL represented that it had ceased and abandoned development and/or clinical trials of JHL 1101 (rituximab), JHL 1921 and JHL 1922 (dornase alfa), JHL 1149 (bevacizumab), and JHL 1188 (trastuzumab).  Furthermore, JHL represented in the settlement agreement that it had ceased the use and disclosure of any Genentech confidential information, that it would provide employee training regarding the acquisition and use of confidential information, and that any employee or consultant hired from Genentech, Roche Holdings Ltd, or affiliates would review the Proprietary Information Agreement with Genentech/Roche.

The September 9 proposed consent judgment and permanent injunction as to JHL would permanently enjoin JHL and its affiliates from using or disclosing any Genentech confidential information and developing or participating in clinical trials of  JHL 1101 (rituximab), JHL 1921 and JHL 1922 (dornase alfa), JHL 1149 (bevacizumab), and JHL 1188 (trastuzumab).  JHL also agreed, through August 7, 2024, to provide employee training regarding the acquisition and use of confidential information, and that any employee or consultant hired from Genentech, Roche Holdings Ltd, or affiliates would review the Proprietary Information Agreement with Genentech/Roche.

In response to the proposed consent judgment and permanent injunction as to JHL, the court issued on September 16, 2020 an order to answer the following questions: (1) whether the submitted documents comprise the entirety of the agreement between the parties, or whether side agreements remain, either written or unwritten; and (2) why the parties, if they remain free to privately settle and agree to terms, want the Court to grant an injunction that may contain anticompetitive aspects.  Genentech and JHL are required to jointly respond to the court by noon on September 30, 2020.

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