Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

GSK sues US rival Gilead Sciences for alleged HIV drug patent infringement

GSK’s one pill, once daily treatment was approved back in November, while Gilead’s drug got the green light from the US FDA on Wednesday
hiv treatment
New GSK boss Emma Walmsley considers the firm’s HIV drug to be “critical” to its future

UK drugs giant GlaxoSmithKline plc (LON:GSK) is suing its US rival Gilead Sciences Inc (NASDAQ:GILD) as it looks to tighten its grip on the US$22bn HIV treatment market.

In November, the Food and Drug Administration (FDA)  approved GSK’s two drug, one pill treatment called Juluca , which analysts estimate could generate billions in sales over the coming years.

Juluca “critical” to GSK’s future​​

That put the FTSE 100 firm a step ahead of its competition, but on Wednesday Gilead also received FDA approval for its own once-daily, one pill treatment.

GSK said it is taking Gilead to court, where it will look to prove that the latter’s drug infringes ViiV Healthcare’s – GSK’s majority-owned HIV subsidiary – patent covering dolutegravir, a key chemical used in Joluca.

ViiV will “seek financial redress” for the alleged patent infringement, GSK added, although it would likely prefer the courts to stop Gilead from making and selling its drug altogether.

Glaxo’s new boss Emma Walmsley will be desperate to protect one of her key earners, which she has said in the past is one of three drugs “critical” in helping to fill a revenue gap left by declining sales of its blockbuster Advair inhaler.

New way of treating HIV​

GSK and Gilead have been working on developing simpler treatments to keep HIV under control.

Before the two firms’ drugs were approved, sufferers generally had to take a cocktail of three or four pills.

The industry as a whole has been looking for simpler ways to control the virus, with the hopes that fewer drugs will lead to fewer side effects.

GSK shares rose 1.3% to £13.02.

View full GSK profile View Profile

GlaxoSmithKline plc Timeline

Related Articles

September 18 2018
The company is utilising technology and big data to tackle the growing healthcare crisis and personalise treatment options for preventative care.
Graphic of person pointing to different parts of the body
May 14 2018
Paradigm’s share price has increased more than 60% in the last month and it was up more than 12% on Friday.
scientist with vial
September 25 2018
The AIM-listed drug developer is at the vanguard of advances in the emerging field of immuno-oncology

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use