GSK to get $1.25 billion to settle HIV drug patent dispute with Gilead

A view shows the headquarters of GlaxoSmithKline in London, Britain, January 17, 2022.REUTERS/Hannah McKay

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  • Settlement expected in Q1 2022
  • Gilead will pay 3% royalties until 2027
  • GSK shares rise 0.7%

Feb 2 (Reuters) – Britain’s GlaxoSmithKline (GSK.L) will receive $1.25 billion from Gilead Sciences (GILD.O) in a settlement between its HIV drugs unit and the drugmaker based in the United States, ending a long-running patent dispute.

The settlement, announced by GSK on Tuesday, concerns Gilead’s antiretroviral drug Biktarvy, a drug used to control the virus that causes AIDS, which GSK said in 2018 violated its ViiV Healthcare unit’s dolutegravir and other similar compounds.

HIV drugs developed by ViiV, in which Pfizer (PFE.N) and Japan’s Shionogi (4507.T) also have small stakes, are an important part of GSK’s plan to bolster its lagging pharmaceuticals business as it is preparing to divest its consumer healthcare arm.

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Payment is expected to be made in the first quarter of this year, London-listed GSK said. Gilead will also pay a 3% royalty through 2027 on sales of Biktarvy and future US sales of any product containing its primary component.

The settlement weighed on Gilead’s fourth-quarter results on Tuesday as its profit beat market expectations. Read more

GSK shares were up 0.7% at 1,656p at 0821 GMT on Wednesday, while Gilead closed down 3.6% on Tuesday.

Gilead’s Biktarvy, which combines three HIV drugs in one daily pill, poses the biggest competitive challenge for GSK’s ViiV and is one of Gilead’s best-selling treatments, generating sales of $7.05 billion. dollars in 2021 on the American market.

Biktarvy’s cumulative U.S. sales through 2027 are estimated to be around $50 billion, Jefferies analysts said, adding that royalties worth around 1.5 billion pounds ($2 billion) may be expected for all of ViiV.

While Gilead is the leading provider of HIV treatments, GSK is working to challenge its dominance by focusing on longer-lasting treatments, like the Dovato two-drug regimen, to reduce the number of drugs patients should take.

On Tuesday, US regulators expanded the use of ViiV’s Cabenuva injection, taken once every two months, to include adults with virologically suppressed HIV without prior treatment failure or resistance to cabotegravir or rilpivirine. .

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Reporting by Pushkala Aripaka and Jahnavi Nidumolu in Bengaluru and Ludwig Burger in Frankfurt; Editing by Krishna Chandra Eluri and Arun Koyyur

Our standards: The Thomson Reuters Trust Principles.

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