GlaxoSmithKline plc (NYSE:GSK) has settled a patent dispute between ViiV Healthcare and Gilead Sciences Inc (NASDAQ:GILD).
- The settlement, announced by GSK, relates to Gilead's antiretroviral HIV drug Biktarvy, which GSK said in 2018 infringed on its unit ViiV Healthcare's dolutegravir and other similar compounds.
- Gilead's Biktarvy, which combines three HIV medicines in a single daily tablet, is one of Gilead's top-selling treatments, with $7.05 billion in U.S. sales in FY21.
- Under the terms of the global settlement and licensing agreement, Gilead will make an upfront payment of $1.25 billion to ViiV Healthcare which is expected in the first quarter of 2022.
- Gilead will also pay a 3% royalty until 2027 on sales of Biktarvy and future U.S. sales of any product containing its main component.
- The upfront payment and royalty income will be distributed in proportion to the ordinary shareholding in ViiV Healthcare (GSK 78.3%, Pfizer Inc (NYSE: PFE) 11.7%, Shionogi Limited 10%).
- Price Action: GSK shares are up 0.58% at $45.45, GILD stock is down 5.98% at $65.06, and PFE shares are up 0.76% at $53.48 during the market session on the last check Wednesday.
