Former Genentech employees are chargedwith stealing trade secrets

SAN FRANCISCO >> A federal grand jury has indicted a cadre of former Genentech employees for allegedly stealing trade secrets from the South San Francisco-based biotechnology company.

Unsealed Monday, the indictment alleges that Xanthe Lam, a principal scientist at Genentech from 1986 until 2017, downloaded, collected and transferred confidential documents to her husband Allen Lam and other consultants for JHL Biotech Inc. in Taiwan.

JHL Biotech develops “biosimilars,” or nearly identical copies of drugs made by other manufacturers. The drugs in this case included Pulmozyme, Herceptin and Avastin.

According to the indictment, Xanthe Lam also secretly consulted for JHL Biotech while employed by Genentech as well as allowed former Genentech employee James Quach to use her computer credentials to access and steal proprietary manufacturing protocols.

Xanthe Lam, 66, of South San Francisco, is charged with conspiracy to commit theft of trade secrets, theft of trade secrets and conspiracy to commit computer fraud and abuse. She could get up to 10 years in prison if convicted of the trade secrets-related charges.

Quach, 58, of Daly City, is also charged with conspiracy to commit computer fraud and abuse as well as computer fraud and abuse.

In addition, Allen Lam, 68, of South San Francisco, and John Chan, 29, of San Francisco, are charged with conspiracy to commit theft of trade secrets and theft of trade secrets. Like Quach, both men worked for Genentech before joining JHL Biotech.

The Lams, Quach and Chan pleaded not guilty to the charges Monday and were released on bond. Magistrate Judge Joseph C. Spero has scheduled their next court appearance for Nov. 13.