Corante

About this Author
DBL%20Hendrix%20small.png College chemistry, 1983

Derek Lowe The 2002 Model

Dbl%20new%20portrait%20B%26W.png After 10 years of blogging. . .

Derek Lowe, an Arkansan by birth, got his BA from Hendrix College and his PhD in organic chemistry from Duke before spending time in Germany on a Humboldt Fellowship on his post-doc. He's worked for several major pharmaceutical companies since 1989 on drug discovery projects against schizophrenia, Alzheimer's, diabetes, osteoporosis and other diseases. To contact Derek email him directly: derekb.lowe@gmail.com Twitter: Dereklowe

Chemistry and Drug Data: Drugbank
Emolecules
ChemSpider
Chempedia Lab
Synthetic Pages
Organic Chemistry Portal
PubChem
Not Voodoo
DailyMed
Druglib
Clinicaltrials.gov

Chemistry and Pharma Blogs:
Org Prep Daily
The Haystack
Kilomentor
A New Merck, Reviewed
Liberal Arts Chemistry
Electron Pusher
All Things Metathesis
C&E News Blogs
Chemiotics II
Chemical Space
Noel O'Blog
In Vivo Blog
Terra Sigilatta
BBSRC/Douglas Kell
ChemBark
Realizations in Biostatistics
Chemjobber
Pharmalot
ChemSpider Blog
Pharmagossip
Med-Chemist
Organic Chem - Education & Industry
Pharma Strategy Blog
No Name No Slogan
Practical Fragments
SimBioSys
The Curious Wavefunction
Natural Product Man
Fragment Literature
Chemistry World Blog
Synthetic Nature
Chemistry Blog
Synthesizing Ideas
Business|Bytes|Genes|Molecules
Eye on FDA
Chemical Forums
Depth-First
Symyx Blog
Sceptical Chymist
Lamentations on Chemistry
Computational Organic Chemistry
Mining Drugs
Henry Rzepa


Science Blogs and News:
Bad Science
The Loom
Uncertain Principles
Fierce Biotech
Blogs for Industry
Omics! Omics!
Young Female Scientist
Notional Slurry
Nobel Intent
SciTech Daily
Science Blog
FuturePundit
Aetiology
Gene Expression (I)
Gene Expression (II)
Sciencebase
Pharyngula
Adventures in Ethics and Science
Transterrestrial Musings
Slashdot Science
Cosmic Variance
Biology News Net


Medical Blogs
DB's Medical Rants
Science-Based Medicine
GruntDoc
Respectful Insolence
Diabetes Mine


Economics and Business
Marginal Revolution
The Volokh Conspiracy
Knowledge Problem


Politics / Current Events
Virginia Postrel
Instapundit
Belmont Club
Mickey Kaus


Belles Lettres
Uncouth Reflections
Arts and Letters Daily
In the Pipeline: Don't miss Derek Lowe's excellent commentary on drug discovery and the pharma industry in general at In the Pipeline

In the Pipeline

« Ariad's Ponatinib Runs Into Big Trouble | Main | Cambridge Meetup Final Plans: Noon by Broad Canal Way »

October 10, 2013

A Leak at Lilly

Email This Entry

Posted by Derek

The Indianapolis Business Journal has reported that two ex-Lilly employees have been indicted on charges of stealing trade secrets:

The indictment charges two Carmel residents, Guoqing Cao and Shuyu Li, with seven counts of theft and conspiracy to commit theft. It also describes the actions of a third man, referred to only as Individual #1, who also played a part in the alleged crime.

According to the indictment, Cao and Li, both of whom are scientists with doctoral degrees, e-mailed sensitive information about nine experimental drug research programs at Lilly to Individual #1, who is employed by Jiangsu Hengrui Medicine Co. Ltd., based in China.

The story is puzzling in its details. These were apparently all "early stage" results across several therapeutic areas, which is hard to figure. If the information was from too early a stage, one wonders what the Jiangsu Hengrui Medicine Company would be able to make out of them, without spending a big pile of its own money, which I presume was not the plan. The article attaches a figure of $55 million to what was stolen, but I have absolutely no idea of how that was calculated. That must be a rough estimate of how much Lilly has spent on whatever it was; future value of these things is, naturally, a complete coin toss. We may also be looking at someone else's understanding of drug development, where everything short of picking the package color is considered early and/or brief. At any rate, Lilly's general counsel has said that the theft "does not significantly jeopardize our overall research and development pipeline", which makes you wonder why it was worth stealing in the first place. More on this as details come out. . .


Comments (11) + TrackBacks (0) | Category: The Dark Side


COMMENTS

1. Anonymous on October 10, 2013 7:08 AM writes...

Perhaps Lilly have worked out that it's better to leak and then sue for theft of IP that *might* have value, rather than spending billions to show that it doesn't have any value?

Permalink to Comment

2. Angry Anon on October 10, 2013 7:20 AM writes...

Or maybe its just several Chinese nationals cheating to get ahead. I guess that a possibility as well, right?

Not to say that this is a cultural phenom.

Permalink to Comment

3. Twelve on October 10, 2013 7:32 AM writes...

If it's a coin toss, it's one where winning is tied to how often the coin ends up on its edge.

Permalink to Comment

4. Anonymous on October 10, 2013 8:09 AM writes...

How many scientists did Lilly lay-off and then walk off the site with the same valuable information between their ears?

Permalink to Comment

5. a. nonymaus on October 10, 2013 8:59 AM writes...

Should have kept them on staff and started using them as disinformation conduits.

Permalink to Comment

6. The Aqueous Layer on October 10, 2013 10:01 AM writes...

How many scientists did Lilly lay-off and then walk off the site with the same valuable information between their ears?

Lots. Same with every other pharma company. That little thing called your Employee Agreement, which forbids you from discussing proprietary information for x number of years after you leave is what is supposed to prevent you from disclosing what you know.

Realistically, if a company hires you and lets you blab about what you know, then uses that information, they've put themselves into some serious IP trouble as well.

Permalink to Comment

7. pgwu on October 10, 2013 10:05 AM writes...

This looks like the reverse of turd drugs going to pharma like the BioTurdCEO twitted. These two guys seemed to get some turd info probably collected from the internet (all those validation terms in the lawsuit), passed off as bargain for some vip positions.

Permalink to Comment

8. NoDrugsNoJobs on October 10, 2013 12:28 PM writes...

#7 - I like your take, interesting possibility?

Permalink to Comment

9. Ted on October 10, 2013 1:39 PM writes...

Lilly is managed by idiots. I found one of their program presentations on the hotel business center computer on my last business trip. It's hard not to notice a document that was saved to the desktop.

From the Lilly website:

"This drive for progress and innovation is what we are looking for in our people. We have created an open environment designed to stimulate the flow of information."

Maybe they should focus on some stimulatory inhibitors.

-t

Permalink to Comment

10. Anonymous on October 10, 2013 4:57 PM writes...

#4. Read #1. Nothing has value in this business until it starts making money. Lilly's dire position in the world is proof of this

Permalink to Comment

11. 1 on October 13, 2013 12:42 PM writes...

I even suspect all of NSF and NIH research proposals also being sent to the people in CHINA! We have so many PIs (reviewers) and POs in all top places and where there is no check. We are playing in to their hands!

Permalink to Comment

POST A COMMENT




Remember Me?



EMAIL THIS ENTRY TO A FRIEND

Email this entry to:

Your email address:

Message (optional):




RELATED ENTRIES
Messed-Up Clinical Studies: A First-Hand Report
Pharma and Ebola
Lilly Steps In for AstraZeneca's Secretase Inhibitor
Update on Alnylam (And the Direction of Things to Come)
There Must Have Been Multiple Chances to Catch This
Weirdly, Tramadol Is Not a Natural Product After All
Thiola, Retrophin, Martin Shkrell, Reddit, and More
The Most Unconscionable Drug Price Hike I Have Yet Seen