GlaxoSmithKline PLC (LSE:GSK) has confirmed that an HIV drug business it majority-owns has agreed a US$1.25bn settlement with competitor Gilead Sciences.
ViiV, a joint venture between GSK, Pfizer and Japan’s Shionogi, claimed Gilead’s triple combination treatment Biktarvy infringed the JV’s patents over an existing drug, dolutegravir.
As part of the deal, Gilead has been granted a global licence to certain dolutegravir patents and an assurance, or covenant not to enforce “any patents controlled by ViiV, GSK or Shionogi against Gilead in connection with any past or future claims of infringement relating to Biktarvy”.
In addition to the upfront payment, the US biotech will also pay a 3% annual royalty on sales of its HIV product or US$180mln based on 2020’s revenues from the drug.