GSK To Get $1.25B As Settlement For HIV Treatment Drug Patent Row With Gilead - Gilead Sciences (NASDAQ:G

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.

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