AstraZeneca succeeds in last-ditch bid to stop former executive starting at GSK this week

AstraZeneca has succeeded in an eleventh-hour effort to stop a former senior executive from joining rival GSK this week after a High Court judge granted the drugmaker an injunction in an unusual legal battle featuring Britain’s two biggest pharmaceutical companies.

Chris Sheldon, who left AstraZeneca in August after holding several senior roles, was due to start at GSK on September 1 with responsibility for development across the group’s therapy businesses.

AstraZeneca sued Sheldon in July, alleging that starting at GSK before February would put him in breach of a non-compete agreement that was due to run for six months.

The drugmaker, best known for its Covid-19 vaccine, said that Sheldon had received share awards worth £644,553 in return for signing the agreement.

Sheldon informed AstraZeneca of his intention to move in April before leaving in August. He denies the allegations and any wrongdoing.

The case is due to go to trial in October but AstraZeneca sought an urgent High Court injunction on Wednesday to prevent Sheldon, who had led investor relations at AstraZeneca and held a senior role in its oncology business, starting the role on Thursday [Sept 1].

Daniel Oudkerk QC, representing AstraZeneca, told the High Court that the pharma group was “likely to suffer irreparable damage” if Sheldon was able to start work at GSK ahead of the full trial in October.

“AstraZeneca obviously has a legitimate business interest in protecting its confidential information,” Oudkerk said, adding that Sheldon had knowledge of the group’s existing medicines, pipeline of drugs as well as its business development and commercial strategy.

James Laddie QC, representing Sheldon, said there was no reason the former AstraZeneca executive should be prohibited “from undertaking a job which is unrelated to either of the two roles he performed in the last 12 months of employment with AstraZeneca.”

Sheldon had had an “impeccable record” and “it’s never been suggested that he’s interested in or has taken confidential information to use at GSK,” Laddie said.

Mrs Justice Heather Williams ruled that “the most just and appropriate way is to hold the ring until trial and to grant the injunction sought.”

Lawsuits over employment agreements are relatively rare in the High Court, with cases usually involving staff working in specialist areas of financial services such as interdealer broking.

GSK said: “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.”

AstraZeneca declined to comment.