|Audit Intelligence

Theft of FIVE PRIME’s trade secret by former employees of Glaxosmithkline

Five Prime Therapeutics Inc (NASDAQ:FPRX)

Background

In 2012, the company entered into research collaboration and license agreement, or the respiratory diseases collaboration, with GlaxoSmithKline LLC to identify new therapeutic approaches to treat refractory asthma and chronic obstructive pulmonary disease.

Theft of company’s trade secret by former employees of Glaxosmithkline

On January 19, 2016, GlaxoSmithKline (“GSK”) informed Five Prime Therapeutics, Inc. (“FivePrime”) that the U.S. Attorney’s Office had arrested and charged certain individuals, including two former GSK employees, with theft of trade secrets from GSK, which theft included information related to FP-1039, FivePrime’s FGF ligand trap product candidate, which is partnered with GSK. On January 20, 2016, the U.S. Attorney’s Office issued a press release announcing indictments of these individuals. GSK informed FivePrime that the former GSK employees that were arrested and charged no longer have any access to GSK’s systems and their employment with GSK has terminated. FivePrime is investigating this matter to obtain additional information regarding this matter and its impact on FP-1039 and FivePrime.