Biktarvy image courtesy of Gilead Sciences
Gilead Sciences (NSDQ:GILD) will pay a 3% royalty on future U.S. sales of Biktarvy on top of a $1.25 billion upfront payment to settle global patent infringement litigation with ViiV Healthcare.
The royalty payments will be in effect until the expiration of the applicable patent (No. 8,129,385) on 5 October 2027.
Biktarvy generated $7.26 billion in sales in 2020 and $8.62 in 2021.
ViiV Healthcare is a joint venture between GSK (NYSE:GSK), Pfizer (NYSE:PFE) and Shionogi (TYO:4507). GSK is a 78.3% shareholder. Pfizer owns 11.7%, while Shionogi owns the remaining 10%.
The proceeds from the settlement will give a cushion to GSK, which is mulling spinning off its consumer healthcare division, but recently spurned Unilever’s overtures to buy the unit.
In 2018, GSK alleged that Gilead’s HIV drug Biktarvy had infringed on its unit ViiV Healthcare’s dolutegravir.
Bikarvy is a cocktail combining bictegravir 50 mg, emtricitabine 200 mg, and tenofovir alafenamide 25 mg tablets.
According to Gilead, it is the most popular HIV treatment in the U.S.
The companies involved in the matter have agreed to drop patent infringement litigation in several other countries, including the UK, France, Ireland, Japan, Korea, Australia and Canada.
Following the settlement, ViiV Healthcare, GSK and Shionogi agreed to stop enforcing their patents related to bictegravir.
Gilead’s shares were down 3.87% to $65.82.
GSK shares were up 1.13% to $45.70, PFE shares ticked up 1.49% to $53.86, while Shionogi shares ticked up 6.63% to ¥7,561.00.