US – based Viking Therapeutics (NASDAQ: VKTX) is set to take China’s Ascletis Pharma Inc. (HKG: 1672) to court in the United States over alleged theft of trade secrets and breach of contract. Viking has filed separate complaints with the US District Court of Southern California and the US International Trade Commission in Washington D.C. The court case names Ascletis, its subsidiaries Gannex Pharma Co., Ltd, and CEO Jinzi Jason Wu. Ascletis has issued a statement indicating it plans to “vigorously defend” itself from all charges.
Background of the Case
According to the case filing at the district court in California, Viking alleges that Ascletis met with the firm on two separate occasions to discuss the potential licensing of Viking’s lead pipeline candidate, VK2809. This drug, currently in Phase II, is a selective thyroid hormone receptor – beta (THRβ) agonist designed for the treatment of metabolic disorders, including non – alcoholic fatty liver disease (NAFLD) and non – alcoholic steatohepatitis (NASH).
Allegations and Timeline
Viking’s case states that key data related to VK2809 were revealed at two meetings held in 2016 and 2019, both of which involved Ascletis signing Confidential Disclosure Agreements (CDAs). In 2019, Ascletis employees had access to data regarding VK2809 for over one month before backing out of the deal. Approximately six months later, Ascletis set up Gannex Pharma, its NASH – focused subsidiary. Gannex began development of its own oral THRβ agonist for NASH, ASC41, in Q1 2020. The document also cites ASC43F, a fixed – dose combination (FDC) oral tablet that incorporates ASC41.
Legal Claims and Ascletis’ Response
In summary, Viking alleges that Ascletis “could not have so quickly advanced their development, testing, and commercialization efforts without breaching the CDAs and improperly and intentionally misusing Viking trade secrets.” Viking is asking the court to declare it as the owner of intellectual property (IP) related to products emerging from the breach of confidentiality and to award undisclosed damages or royalties, as well as an injunction on further development of allegedly infringing drug candidates. Ascletis states that its operations remain unaffected by the case, while the firm will be closely monitoring the progress of the legal proceedings.-Fineline Info & Tech
