Gilead settles patent dispute with ViiV Healthcare over HIV drug
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GlaxoSmithKline (NYSE:GSK) announced that ViiV Healthcare, majority-owned by the U.K. pharma giant, entered into a settlement with Gilead Sciences (NASDAQ:GILD) to end the legal battle over dolutegravir, ViiVâs antiviral medication used with other medicines to treat HIV.
With its rival HIV therapy, Biktarvy Gilead infringed dolutegravir patents, ViiV Healthcare, GlaxoSmithKline (GSK), and Shionogi (OTCPK:SGIOF)
(OTCPK:SGIOY) had previously alleged. The settlement brings an end to the patent infringement cases in countries including the U.S. and U.K.
Per the terms, Gilead (GILD) is set to make an upfront payment of $1.25B to ViiV Healthcare in Q1 2022 in addition to 3% royalty on all future U.S. sales of Biktarvy and bictegravir component of the triple combination. The royalties are payable from Feb. 2022 to Oct. 2027.
The payments will be distributed in the ratio of ordinary shareholding in ViiV Healthcare, owned by GlaxoSmithKline (GSK) (78.3%), Pfizer (NYSE:PFE) (11.7%), and Shionogi (10%) net of the contingent consideration liability to Shionogi and applicable tax.
The upfront payment will be reflected as an adjusting item in GlaxoSmithKline (GSK) Q1 2022 results.
Read: On Tuesday, Gilead Sciences (GILD) recorded better than expected financials for Q4 2021.