Pharmaceuticals giant Merck & Co (NYSE:MRK) is to cash in after winning a patent battle against sector peer Gilead Sciences Inc (NASDAQ:GILD).
Gilead was ordered to pay Merck US$2.54bn in royalties due from sales of Gilead's hepatitis C drugs Sovaldi and Harvoni.
The jury upheld Merck's patents on hepatitis C yesterday, prompting a small rise in Merck's shares and a 1.4% slide in Gilead's share price in pre-market trading this morning.
Gilead said it would appeal against the decision and noted that the decision did not prevent it from continuing to sell its blockbuster hepatitis C drugs.