Swiss pharmaceutical giant Novartis (NYSE: NVS) filed a complaint with a US court last week, seeking discovery to gain access to certain business records of Japan-based Takeda (TYO: 4502). Novartis aims to determine whether Takeda has potentially benefited from confidential documents that may have been inappropriately transferred by a former employee.
Background of the Complaint
According to Novartis, an operations lead for cell and gene therapy based in Egypt withdrew thousands of files in May before moving to a similar position at Takeda in July. This action prompted Novartis to reach out to Takeda regarding the issue, but the company claims it received an “atypical, uncooperative approach” in response.
Nature of the Data in Question
The data in question includes a range of sensitive information such as technical, sales, financial, and transaction details, as well as site plans. Novartis is concerned that this information could provide Takeda with an unfair competitive advantage.
Takeda’s Response
In response to the complaint, Takeda has stated that it “has no interest in Novartis’ confidential information.” The company denies any wrongdoing and asserts its commitment to maintaining the confidentiality and integrity of business practices.
Conclusion
The legal dispute between Novartis and Takeda highlights the importance of protecting confidential information in the highly competitive pharmaceutical industry. As the case unfolds, it will be closely watched by other companies in the sector, as the outcome could set a precedent for how such matters are handled in the future.-Fineline Info & Tech
