Gilead vs. CDC: The $1B Showdown Over HIV Drug Profits

Gilead Sciences Inc GILD is reportedly looking to fight claims that it owes the U.S. government a share of over $1 billion in profits from its HIV-treatment drug Truvada that could help prevent the disease. It generated sales of $147 million in 2022 compared to $371 million a year ago.

The FDA approved Gilead's Truvada for HIV prevention in 2012 and its related drug Descovy for the same purpose in 2019.

Descovy sales came in at 1.87 billion versus $1.7 billion in 2021.

The government is seeking over $1 billion from Gilead for allegedly failing to compensate the Centers for Disease Control and Prevention (CDC) for discovering Truvada.

Gilead collaborated with the CDC in the mid-2000s to test if Truvada could prevent HIV and treat it.

Also Read: Texas Judge Obstructs Affordable Act Coverage Mandate For Some Cancer Screenings, Prophylaxis.

The government received four patents for HIV prevention drug regimens that CDC researchers invented, Reuters reported. Its lawsuit claims the patents also cover Gilead's pre-exposure prophylaxis (PrEP) drug regimen for lowering HIV infection risk.

The federal government sued Gilead for patent infringement in 2019, claiming Gilead "exaggerated" its role in developing PrEP, ignored the CDC's contributions, and refused to license the CDC's patents.

Gilead has denied the allegations. In parallel to the jury trial, Delaware U.S. District Judge Maryellen Noreika will separately consider Gilead's argument that the patents are unenforceable based on government misconduct.

Price Action: GILD shares are down 1.41% at $80.27 on the last check Tuesday.

Photo via Wikimedia Commons

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