AstraZeneca PLC (LSE:AZN) has succeeded in stopping a former senior executive from joining rival GSK PLC (LSE:GSK, NYSE:GSK) via an injunction granted by a High Court judge.
Having recently left AstraZeneca after holding several senior positions, Chris Sheldon was due to join GSK on September 1, in charge of developing the group's therapy businesses.
"Whilst we are disappointed by this interim decision, we continue to believe that Dr Sheldon’s position is strong and are confident that he will be able to begin his new role at GSK following the main hearing in October," a GSK spokesperson told media.
"Regardless of the next hearing’s outcome, however, we look forward to Dr Sheldon joining in the coming months and welcome the expertise he will bring to GSK."
AstraZeneca (AZ) sued Sheldon in July, alleging that his decision to join GSK before February violated a six-month non-compete agreement, reports FT.
AZ said Sheldon received over £644,000 in company shares in 2021 to sign the non-compete clause.
AZ informed Bloomberg earlier this month that the non-compete agreement specifically prohibits Sheldon from competing in respiratory, oncology, and Covid-19-related therapy work for a period of six months after leaving the company.
In April, Sheldon informed AZ he would be moving out in August. The executive has denied all allegations.
Trial is scheduled for October, but AZ sought an urgent High Court injunction on Wednesday to prevent Sheldon from starting on Thursday, September 1.
AstraZeneca's attorney, Daniel Oudkerk QC, told the High Court that if Sheldon started working at GSK before October's full trial, the company would suffer "irreparable damage."
AZ has a legitimate business interest in securing and protecting its confidential information, Oudkerk told FT, adding Sheldon was well versed in the group's existing medicines, its pipeline of medicines, as well as its business development and commercial strategies.
Sheldon's lawyer, James Laddie QC, said there was no reason he should be prevented from taking up a job unrelated to either of his two roles as an AZ executive in the last 12 months.