Glaxo's ViiV Healthcare settles patent row with Gilead

Specialist HIV company Viiv Healthcare - which is majority-owned by GlaxoSmithKline with Pfizer and Japan’s Shionogi as shareholders - has settled a global patent infringement litigation with Gilead Sciences.

The litigation was concerning ViiV’s patents relating to dolutegravir, an antiretroviral medication used, together with other medicines, to treat HIV.

ViiV, Glaxo and Shionogi alleged that Gilead's Biktarvy, a triple combination HIV medicine containing the HIV integrase inhibitor bictegravir, tenofovir alafenamide and emtricitabine, infringed certain of their patents relating to dolutegravir.

As part of the settlement, which will see Gilead make an upfront payment of $1.25bn to ViiV Healthcare in the first quarter, Gilead has been granted a worldwide licence to certain ViiV patents relating to dolutegravir and a 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.

ViiV, Glaxo and Shionogi have also agreed not to enforce their patents against any future product containing bictegravir, to the extent that the patent enforcement relates to the bictegravir component of the product.

In addition to the upfront payment, Gilead will pay a 3% royalty on all future US sales of Biktarvy and in respect of the bictegravir component of any other future bictegravir-containing products sold in the US.

These royalties will be payable by Gilead to ViiV Healthcare from 1 February until the expiry of ViiV’s US patent in 2027. Glaxo will receive 78.3% of the income, Pfizer 11.7% and Shionogi 10%.