In November 2025, the Supreme People's Court of China issued a final ruling on the "Genscript Biotech vs. Fan Xiaohu Trade Secret Infringement Dispute," overturning the first-instance judgment by the Nanjing Intermediate Court and dismissing all claims by Genscript. Fan Xiaohu emerged victorious, marking the end of a high-profile legal battle that had escalated from the headquarters of China's leading CAR-T company to the nation's highest court. The case concluded with no compensation or liability for the founder.
The dispute traces back several years. In 2014, Fan Xiaohu returned to China and joined Genscript Group to lead its antibody protein engineering division. In 2015, he co-founded Legend Biotech (LEGN) to develop CAR-T cell therapies, which later spun off from Genscript. Fan played a pivotal role in Legend Biotech's growth and was one of the inventors of its CAR-T therapy, Cilta-cel (also known as Cilta-cel).
In June 2020, Legend Biotech went public on Nasdaq, earning the title of "China's first listed CAR-T company." On February 28, 2022, Cilta-cel received FDA approval, becoming the first China-developed CAR-T therapy approved in the U.S. By May, it also secured conditional marketing authorization in the EU. However, just one month after Cilta-cel's approval, Fan Xiaohu resigned from Legend Biotech, with Fang Guowei succeeding him. His departure shocked the industry.
Months later, news broke that Genscript had sued Fan Xiaohu. In 2022, Genscript accused its former executive and co-founder of Legend Biotech, Fan Xiaohu, of trade secret infringement. The case, heard by the Nanjing Intermediate People's Court, alleged that Fan had sent six confidential documents, including project proposals, to his personal email and disclosed inaccurate financial data during a press conference.
Fan’s legal team, led by Hui Zhong Law Firm, countered that his actions were work-related during Legend Biotech's early stages, when no internal policies prohibited such conduct. They also argued that the financial data cited in the press conference came from company promotional materials.
The Supreme Court ruled that Fan’s emailing of documents was part of his job duties, lacking malicious intent. There was no evidence of subsequent misuse, and the emails had been automatically deleted. Some disputed information had already been patented or shared with clients, causing no commercial harm to Genscript. The court overturned the initial verdict and dismissed all claims.
Following the ruling, Fan Xiaohu expressed relief, calling it "a triumph for justice."
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