In GSK Patent Settlement, Gilead To Pay $1.25B On Biktarvy

It doesn’t come as a shock when we hear that GlaxoSmithKline and Gilead Sciences are fighting out in  HIV domain for a long time, just hoping for an access to success over the other, be it new launches or even drug trials, which have been happening round the clock. In a fresh dispute, both companies are now looking to resolve an issue on profitable patents that are concerned with Dolutegravir, one of GSK’s HIV drugs. ?

As per the settlement that has taken place, Gilead will have to make a payment of $1.25b to the ViiV Healthcare wing of GlaxoSmithKline within the Q1 of 2022 itself. Not only that, with immediate effect, Gilead will also have to pay a royalty of 3% on the US sales that it is involved in, of the prominent selling drug for HIV, Biktarvy. Notably, this medicine has already garnered $7.26b in 2021.

As per the patent dispute, Gilead’s Biktarvy has been accused by ViiV Healthcare and its shareholders, GSK and Shionogi, of infringing its patents related to Dolutegravir. Gilead’s drug happens to be a fusion of emtricitabine, bictegravir, tenofovir, and alafenamide. With this settlement, Gilead will have access to a global licence for patents that would be related to the ViiV drug. ViiV and its shareholders have decided not to pursue any infringement claims, past or future, relating to Biktarvy or any products containing bictegravir.

This deal comes at the right time and should end up being ripe as well, as both companies are eyeing dominance in the HIV market. In the fourth quarter results of 2021, Gilead’s HIV sales dipped 4% and are pegged at $16.3 billion. This was primarily due to the loss of Truvada and Atripala’s exclusive rights in the US. That said, the company is witnessing an increase in demand for PrEP medication demand. GSK, on the other hand, is going ahead with a series of launches for its HIV drug named Cabenuva and its prep option named Apretude. The pharmaceutical giant has already gotten an FDA nod for Cabenuva for 2-month dosing.