Pharmaceutical giant GlaxoSmithKline (GSK) said its specialist HIV unit ViiV Healthcare had settled a global patent infringement case it brought against US rival Gilead Sciences in 2018.
ViiV healthcare which is owned by GlaxoSmithKline (78.3%), Pfizer (11.7%) and Shionogi (10%) will receive an upfront payment of $1.25 billion, expected in the first quarter of 2022.
Gilead will also pay a 3% royalty on sales of its HIV drug Biktarvy, which generated sales of $6.1 b billion in 2020.
Analysts at investment bank Jefferies estimate that Biktarvy could generate sales of $50 billion over the five years to 2027 when the patent expires, implying total royalty payments of around £2 billion to ViiV.
Shares in GlaxoSmithKline were 0.2% firmer at £16.48 while Gilead’s shares closed 0.3% lower.
PROTECTING INTELECTUAL PROPERTY
Protecting intellectual property is crucial for the life sciences industry and allows companies to make a return on their investments which in turn enables further investment into finding new drugs.
ViiV claimed that Gilead’s triple combination HIV drug infringed its patents covering its HIV drug dolutegravir and many other compounds that include dolutegravir’s unique chemical make-up.
Gilead is the leading supplier of HIV drugs, owning some of the best-selling products. GlaxoSmithKline has been challenging that position by developing longer-acting injectable solutions.
Yesterday the US regulator approved ViiV’s injectable drug Cabenuva, taken as few as six times a year for adults living with HIV without prior treatment failure or resistance to cabotegravir or rilpivirine.
